Tied closely with the Energy sector, Frack Sand producer U.S. Silica Holdings (SLCA) is making a small move above the daily SMA 50 along with the Energy sector’s big bounce. 28 is key short-term support after having meandered above a downtrend line, which is part of a falling wedge-like object. Think about a ‘stop loss’ below 27 unless you are a fundamental long-term investor.
The weekly shows the bounce coming from a viable support area, although there is another at around 21-22 at the top of the late 2016/early 2017 ‘W’ pattern.
If SLCA can clear the immediate resistance on the daily chart at around 30-31 and the Energy sector makes a real rally (unlike last time), the conservative target would be around 38, which is the 38% Fib retrace. A 50% retrace to around 43 is also viable.
The way I would look at this company is that if you are bullish on Energy, it’s a good one to look into. If you are not bullish on Energy it is not logical to be bullish on Frack Sand and SLCA and it would best be avoided.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.