Tough Stock in a Tough Neighborhood

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I flagged BSFT for you a few weeks back, but had trouble swinging it in front of the firm’s earnings. With that out of the way now, you can see what a tough throwback the chart endured. The stock broke out from well-defined resistance trend line, only to see an aggressive “throwback” to it. However, the post-earnings sell-off and volatility has subsided in favor of the bulls, despite the numerous bears betting against this stock having had every opportunity to break it lower. From an intermedaite-term perspective, price is acting well above all moving averages in a broader base.

Beyond that, you are talking about a low-float/heavily-shorted stock with plenty of aggravating factors for a big upside move. I am currently long BSFT inside the 12631 Trading Service and playing for a continued breakout, with a stop-loss below $35.50.

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