[caption id="attachment_322" align="aligncenter" width="500" caption="ESLR"][/caption]
In light of the market crash this week, my ESLR is the holding that worries me the most. It is the only one of my holdings without any profit at the moment. At times like we're in now, ideally I would only go long on the strongest companies, in the strongest sectors.
ESLR closed at 3.44 today. It's long term low is at 3.3. Here's a quick reassessment of the situation.
Upside: Still above support level while markets are hitting new lows. Lots of volume at the previous \$5 level. MACD and Stochastic showing divergence, assuming it doesn't break support... definitely too early to tell. Volume is uptrending on recent fall.
Downside: Low volume on recent small rally. Little volume today when it's testing the low. Trend is still negative.
Support: \$3.3 and then ... \$2.50? Ouch!
Bottom line: Lots of panic and fear at the moment. Contrarian buy signal perhaps? I'm not buying or selling at this level in any case. I'm going to stick to my plan and brace through this week. Then I'll either surrender my shares at a huge loss or keep holding for the longer term.
Here's my take on a purely speculative feel... the recent action on ESLR seems like it's being accumulated by some big players. Two-stage accumulation: 1) Huge reverse on new low to lure in chasers. 2) Price drifts back down on increasing volume, but not too much to attract attention. I don't know, this could be my emotion talking. That's why I'm waiting for things to calm down first before making a move.