Fairmount Santrol Holdings Inc (NYSE:FMSA) continued its bullish momentum last week. On Friday, the stock jumped more than 9% on volume well above the average, crossing the 100-day moving average for the first time in months and breaking key resistance at $3.94. These signs show high probability for continuation of current momentum in the next couple of trading days.
From a technical standpoint, the RSI remains overbought but higher lows indicate the current uptrend remains intact. While we may see a slight pull-back around these levels, the stock is on fire and any pullback should be used as a buying opportunity. Immediate suports: 3.81,3.64 and 3.51.
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.