We have not made it a secret that we have been stalking silica sands producer, SLCA, as a breakout stock for several weeks. After bumping its head up against resistance in the $23s, SLCA is finally breaking out on thick volume today:
SLCA (Daily)
SLCA has been forming a broad based bottom for the last nine months and there have been ample signs of accumulation in the last couple of months. Resistance near $23 has slowed down SLCA’s advance in recent weeks, however, today’s lower-to-higher reversal on heavy volume is a strong indication that a gap fill up at $26.87 is up next. ~20% short interest only adds fuel to the potential energy of this breakout.
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