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stock option, Breakout test
Begin part 2 of 3
THE PLAYS:
Monday night play results:
CHIC: Still solid but was not ready to make the next move Tuesday.
MC: Gapped lower on the NOK news, managing to hold the 18 day MVA.
SWKS: Tried the move higher on volume but faded back, holding steady.
XRIT: Still working on the handle, testing the 18 day MVA.
OII: Doji at the 10 day MVA.
New Plays:
Upside:
Play Date: 04/06/2004
NGAS (Daugthery Resources--$6.43; +0.52; no options): Oil and gas drilling
http://biz.yahoo.com/p/n/ngas.html
STATUS: Cup w/handle. A nice 9 month base with excellent 10 to 3 accumulation (10 up price weeks on rising volume to 3 down price weeks on rising volume) showing money has moved into the stock even as it has corrected and based out. Volume exploded two weeks back as the stock rallied and formed the right side of the cup. It has come back on lower, below average volume the past week, moving laterally and slightly lower over the 10 day MVA (5.96) as it forms the handle, the point where the last sellers are shaken out. Strong money flow is working ahead of the price and relative strength is ready to breakout once more.
Volume: 1.141M Avg Volume: 433.681K
BUY POINT: $6.62 Volume=651K Target=$7.98 Stop=$6.16
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/ngas.html
Play Date: 04/06/2004
TMWD (Tumbleweed Communication--$7.72; -0.19; optionable): Internet software
http://biz.yahoo.com/p/t/tmwd.html
STATUS: Cup w/handle. TMWD looks as if it is forming the handle to its 17 week base, a shallow cup that formed more or less over the 50 day MVA (7.14). Solid 4 to 1 accumulation in the base shows money moving in as it rested. Volume shot higher Friday and Monday, and Tuesday it was working slightly back on lower, below average volume trade. Excellent money flow is moving up ahead of the stock. May take another day or two to complete the handle, but we want to be ready for the breakout move.
Volume: 181.518K Avg Volume: 370.59K
BUY POINT: $8.12 Volume=556K Target=$9.75 Stop=$7.55
POSITION: MYQ IU - Sept. $7.50c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/tmwd.html
Play Date: 04/06/2004
ZILA (Zila--$5.11; -0.05; no options): Drug related products
http://biz.yahoo.com/p/z/zila.html
STATUS: Cup. Working through a 9 week base that has formed after a solid run in 2003. Perfect price/volume action where volume dried up at the bottom of the pattern at support on 4 and then rallied as the stock moved up to form the right side of the base. Volume backed off Tuesday as it struggled to hold. It may slip into a handle over the next few sessions and then make the move, but accumulation is excellent at 4 to 0 and money flow is very strong ahead of the price.
Volume: 210.298K Avg Volume: 154.09K
BUY POINT: $5.25 Volume=231K Target=$6.35 Stop=$4.88
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/zila.html
Play Date: 04/06/2004
ZOOM (Zoom Technologies--$5.60; +0.40; no options): Telecom equipment
http://biz.yahoo.com/p/z/zoom.html
STATUS: Cup. Volume is starting to jump as ZOOM jumps (didn't want to say zooms) off the bottom of the pattern. It rallied hard to close March, then tested back to the 10 day MVA (4.78) before taking off this week. Accumulation in the pattern is strong at 4 to 1 and money flow is racing higher ahead of the price. It may stop to form a handle before it breaks over 6, but its test of the 10 day on low volume last week may have been all it needed. On another strong volume session move we will start a position.
Volume: 153.116K Avg Volume: 92.363K
BUY POINT: $5.72 Volume=150K Target=$6.88 Stop=$5.28
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/zoom.html
End part 2 of 3
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stock option
Breakout test
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