SodaStream – Speculative Play?

By | June 3, 2015

Home carbonation was, perhaps, a concept that was ahead of its time, but nevertheless, SodaStream (SODA) shares have fallen about 77% in value over the last two years. The weekly chart chronicles the decline, but notice the small rounding bottom that has been forming this year. Overall volume is extremely low, but price and money flow momentum indicators are turning positive. Bollinger bandwidth is contracted, and the 50 and 200 day moving averages are converging, setting up the potential for a volatile move.
The stock price is up 3.5% at this point in today’s session and with a 17% short interest, there could be a minor covering rally.
SodaStream is a small cap, highly speculative trading vehicle, and any trade would be short-term in nature and require strict tight stops.

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