Someone asked me to do an analysis on SVA, so here it is (Please note that my analysis is based on technical analysis alone):
If you would have asked me yesterday what I thought about SVA, I would have told you to WAIT as there appeared to be a pennant formation, possibly breaking up. But on rare occasions the price will break down, despite the stock being in an uptrend.
Today, we got a SELL signal, with the price breaking downwards. This is could be just a short term pullback, but there is no way to really know. SVA may have some support at $8.50-$9.00, after these levels there isn't much support until the $6.00-$7.00 levels, but it's hard to really predict where it will bounce back. My best advice right now would be to sell, and wait for the stock price to move back up, at least for 2 days (higher lows and higher highs) before getting back in, if you truly believe that this stock will pop in the future. You want to see SVA go over $10.50 and $12.00 to have a clear BUY signal.
SVA is still in a strong uptrend that has accelerated lately, and it is normal for it to have a pullback to continue even higher in the future. This stocks makes me think a little bit of MGM (not based on the belief that it will outperform the market) based on the fact that the chart is very bullish long term, but is currently going through a pullback after such a big move, which is required for the stock to resume its trend up afterward. It's always better to play it safe and wait for the right opportunity to get in, even if you have to give up some potential gains, and/or take a small loss (it's better than finding yourself stuck with a big loss). For example MGM had started to rally around the $7.75 level, but I hadn't taken a long position until it broke through its narrow trading channel over $9.00, and I still managed to make a very good profit out of it. I'm also getting a bearish signal from the MACD that's about to cross down through the signal line, giving us another SELL indicator. If you look at the RSI, SVA looked to have bounced back from the 50 level the last few times, which may be a hint of when SVA may bounce back up, if indeed it does bounce up when the RSI hits 50.
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