The first enclosed image is based on a daily time frame, making evident of the most important level of $SCSS since its onset; the $19 dollar
mark. The stock has tested this level in multiple occasions, and hence, lending
itself as support for an island bottom reversal (06/27/12), marking the ground
of such sizable Eve & Eve Double Top. $SCSS is currently trading at
$20.52(1.3% down from previous close) making its way around the $19 dollar
line; hopefully there will not be a breakout. If by any chance the market is unable
to follow through the downside, I would expect a rally, subsequently filling
the “false” breakaway gap (1/25/13); broke out of congested area with high
volume.
The second image is more of a swing trading setup for $SCSS.
The chart is based on a weekly time frame. As mentioned in previous posts, two
drawings that work quite well together in many occasions are the Fib Retracements
and the Gann Angles. With respect to the GA, the price has tested multiple
times its various levels, specifically the 1x8, 1x4, and 1x2 angle. On the
other hand, the Fib Retracements have also shown plenty of eminent levels as
well. Moreover, there is also the RSI and Slow Stochastic strategy, that can be
effectively utilized on $SCSS. Although the RSI seems kind of dilated, which can be troubling for
some if not adjusted properly, you can still check on negative divergences and centerline crossovers.
Alexander Schachter
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