|
|
online investment information, Breakout test
Begin part 3 of 3
THE PLAYS:
********** *************
Each play contains an additional link to a VIDEO that discusses the play in terms of the CHART PATTERN it is currently showing. Patterns, buy points, and targets are discussed along with other points that make the play a good one as well as what areas to watch for. *********** *************
Upside:
Play Date: 06/15/2010
GTI (Graftech Intl.--$17.01; +0.75; optionable): Industrial electric equipment
http://biz.yahoo.com/p/g/gti.html
After Hours: $17.31
EARNINGS: 07/29/2010
STATUS: Ascending triangle. GTI spent the past six weeks forming this triangle with rising lows below a constant top: the higher and higher lows build the pressure for a breakout. This base formed on the heels of a late April breakout on its strong earnings. Unfortunately that broke GTI out of the prior cup base only to fall into the May selling. GTI held its own, however, using the selling to form this new base. GTI has rallied to the breakout point but volume has trailed off the past three sessions; very low trade indeed. Thus it may not make the breakout just yet; may pull back for a day or two, make a higher low, and then try the breakout once more. Whether it makes the break from here or tests is fine; we just want to see the move. On a breakout from here we are taking a partial. These patterns can deliver explosive moves but then they often come back and test. Thus we have some patience, see how it tests, and add when we see it has held and is moving back up.
VIDEO: http://investmenthouse1.com/ihmedia/GTI.wmv
Volume: 679.958K Avg Volume: 2.071M
BUY POINT: $17.18 Volume=2.3M Target=$20.94 Stop=$15.98
POSITION: GTI 10I15.00 - Sept. $15c (70 delta) &/or Stock
Play Date: 06/15/2010
SAPE (Sapient--$10.57; +0.06; optionable): Business software
http://biz.yahoo.com/p/s/sape.html
After Hours: $10.57
EARNINGS: 05/06/2010
STATUS: Ascending triangle. SAPE has formed a pair of back to back triangles, the latest a 5 week jobber that looks to have just made a higher low at the 18 day EMA, hitting that intraday and bouncing sharply Tuesday on very strong, above average volume. SAPE is looking at roughly a 10 year high on a breakout. Definitely want to get involved in that move, and with the big volume surge Tuesday as SAPE knocks at the door of a breakout, it may not take long to get acquainted. It is a buy on the breakout; you can take partial on the move and then wait for a test if you want. The pattern looks very strong, however, so if you go all in on the breakout that is not necessarily a bad move.
VIDEO: http://investmenthouse1.com/ihmedia/SAPE.wmv
Volume: 2.624M Avg Volume: 1.122M
BUY POINT: $10.74 Volume=1.5M Target=$12.94 Stop=$9.96
POSITION: SAPE 10J9.65 - Oct. $9.65c (73 delta) &/or Stock
Play Date: 06/15/2010
URI (United Rentals--$12.61; +0.78; optionable): Rental and leasing service
http://biz.yahoo.com/p/u/uri.html
After Hours: $12.61
EARNINGS: 07/26/2010
STATUS: Pennant/Flag. URI rents construction and industrial equipment. It spent a lot of 2010 moving lower, but as of late March it finally caught fire. It rallied nicely and exploded higher in late April on its earnings report. That move built the strong rally that is the foundation for the current 6 week test. URI has come back to fully test the move from when it turned ballistic, i.e. on the April earnings, but it is still holding a lot of the gain off the February low where it bottomed in 2010. Indeed, it is holding the Fibonacci 50% retracement on the twin bottoms in May and early June, just the kind of pattern you want to see at that level. Monday URI gapped over the 50 day EMA but could not do anything with the move. Tuesday URI was on the move on some strong volume. Very solid and ready to move in as URI continues this upside break.
VIDEO: http://investmenthouse1.com/ihmedia/URI.wmv
Volume: 2.41M Avg Volume: 1.942M
BUY POINT: $12.72 Volume=2.1M Target=$14.69 Stop=$11.64
POSITION: URI 10I10.00 - Sept. $10c (69 delta) &/or Stock
New buy point on current position:
Play Date: 06/15/2010
NETL (Netlogic Microsystems--$29.69; +1.42; optionable): Semiconductors
http://biz.yahoo.com/p/n/netl.html
After Hours: $29.82
EARNINGS: 07/28/2010
STATUS: Reverse head and shoulders. Looking at adding some positions on our current play as NETL has morphed its pattern into a bit of a reverse head and shoulders, forming the right shoulder the past two weeks. Tuesday NETL broke through the neckline resistance on the best volume in over a week, clearing the 50 day EMA on the way and holding just about all of the gain on the session. Solid upside break and ready to move into more positions as NETL continues this new move.
VIDEO: http://investmenthouse1.com/ihmedia/NETL.wmv
Volume: 1.311M Avg Volume: 1.587M
BUY POINT: $29.88 Volume=2M Target=$34.89 Stop=$27.79
POSITION: NETL 10J27.50 - Oct. $27.55c (67 delta) &/or Stock
Good Investing!
Jon L. Johnson and your IH Alerts Team
All of the foregoing is commentary for informational purposes only. All statements and expressions are the opinion of Online Investment Services, LP. or its paid consultants and are not meant to be a solicitation or recommendation to buy, sell, or hold securities. We are not licensed or registered in the securities industry. The information presented herein and on our related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of Partners in Online Investment Services, LP. or its paid consultants may, in some instances, include securities mentioned herein and on our web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors.
|
online investment information
Breakout test
|
