Jones Soda Co (JSDA) – June 24, 2007
A while back I covered Jones Soda (JSDA) in a RealMoney column and noted that it was probably going to trade to $15 (I think it was around $17.50 at the time — not exactly a monster bear growl, but certainly a cautionary note). Anyway, the stock has continued to decline and is now back to test the breakout level from early March.Let’s take a look.
Notice how the stock has been trading downward in a well-defined channel. This is a reliable downtrend that only ends…when it ends! The stock is nearing support at $14 — the price from which the stock jumped in early March. RSI continues to trade lower, and the money flow indicator (on a 10-day setting) shows money outflows — not particularly aggressive, but certainly notable.
Downside volume is waning, which indicates at least a decline in aggressive selling pressure. Whether that will lead to new buying interest is another story.
I’ve produced a video analysis of JSDA which might shed some more light on this stock for you. You can see that video here. And if you have any questions about it, you can email me at Dan@StockMarketMentor.com. If you want to sign up for free emails of my “Tip of the Week”, you can do so on the home page of my website.
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Dan Fitzpatrick
www.StockMarketMentor.com