Boston, MA, 04/22/2014 (usastockreport) – Servicesource International Inc. (NASDAQ:SREV) has seen a tremendous downside over the past few weeks. On Thursday the stock hit an intra-day low of $6.60 but saw a good pull back from lower levels. This makes us believe that there was good amount of bargain buying happening at lower levels. This continued on Monday as traders looked at the stock being upgraded to “Hold” by investment firm Zacks.
The stock currently trades way below its 50 day and 200 day moving averages which is testament to the downward momentum the stock has seen over the past many trading sessions. The momentum indicators for the stock are currently in the negative territory but are showing first signs of bouncing back. The relative strength index also showed signs of bouncing back from its lows on back of the buying the counter saw in the last couple of trading sessions.
On the weekly charts Servicesource International Inc. (NASDAQ:SREV) has been in a downtrend but seems to have shown first signs of support at the $6.60 level. The stock has currently formed a bullish hammer on the charts and a close above current level would confirm the pattern and a reversal. The momentum indicators on the weekly charts are showing first signs of a retracement. Similarly the charts are showing first signs of a pull back and we believe if the support at $6.60 is held we can see the stock retrace back to levels of $7.5.
A word of caution for traders: The stock though has shown a nice pull back it has been on low volumes which we believe might just be the deterrent if the current up move has to sustain.
(Figure): Daily chart for Servicesource International Inc. (NASDAQ:SREV)
Latest Buzz:Servicesource International Inc. (NASDAQ:SREV) was upgraded to a hold by investment firm Zacks’, price revision to $7.20. Rating upgrade happened from Underperform to Neutral.