"Everyone has a plan 'till they get punched in the mouth" - Mike Tyson

April 16, 2013

Random Chart of the Day

PMBC is a small bank with seven branches in southern California. This name popped up on a volume scan both nights this week.  Let's dig in to the 8 year chart.  


Price has done a relatively nice job of holding up after the strong gains, but it's stuck under key longer term moving averages.  If this can get the moving averages turning up and a break of the relative strength channel (graph above price) again it may be a nice long opportunity.

To simplify this a bit, it looks like a big buyer stepped in causing the major run last year and is still holding a significant chunk.  On the flip side, we have to ask why hasn't this rallied with the market.  Maybe there are some issues behind the scenes that market participants are waiting on.  Or, is something wrong with the business?  We'll keep an eye on this in the coming weeks and months to find out.  
   

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All ideas shown on this blog represent the authors opinion based on the data available.