re: Official Erin Energy (ERN) thread

The last two days have had opening hour volumes of 400k shares each. Looks like we'll have half that today with 200k shares in the first hour. Either this is a dead cat bounce, the recovery we have been waiting for, or this is simply a break before more (short) selling. We'll know based on movement in the next few days, for better or worse.

The 5 day RSI is still below 20 so far, but today has swung it up a bit. 1, 3, and 6 month RSI are all at 30. For those who don't know what RSI is, it is a technical indicator ranging from 0-100 that tracks how (over)bought or (over)sold a stock is. People consider 20 or 30 and below oversold, and 70 or 80 and above is considered overbought. Generally, an overbought stock will soon see a price decline and selling, and vice versa for oversold. I am not a technicals guy, and RSI is the only technical I use since it is simple. Just keep in mind that stocks don't always revert to the mean RSI of 50, and just because this technical indicates we are in for a rebound soon does not necessarily mean we will go back up to $8.75.

But like I said in my last post, I think we may be done falling. People have psychological barriers about numbers, namely percentage changes in a stock price and the stock price itself. It usually takes some extra pushing to get past those barriers, and $4 seems to be that barrier. I bought a few more shares yesterday at $4.22 after my last post. I was quite scared about placing the order, but it has paid off so far.