Wednesday, November 17, 2010

i got 5 on it - ACLS, AXTI, MERC, SMSI, TMRK

TMRK: This one got crushed day before yesterday (November 16) to the tune of -3% with the rest of the market, but found support at the November 2 breakout close and printed a doji today (November 17). The volume today was far from stellar (as it to be expected with dojis) but the volume on the pullback in the previous 5 days of trading was far lower than the share turnover during the November 2 - November 10 run. Bears were also unable to get the stock to even test the 20 day moving average. TMRK should continue higher; if not, there are easy exit levels below the 20-day moving average (10.83, about 3.5%) and the November 2 breakout close (11.03, about 1.5%).

Daily:


SMSI: Pulled back with the market in the last few days but held the 20-day moving average the last two days (dotted green) and selling pressure faded considerably today. Still inside the November 4 spike candle. Benefit of the doubt goes to the bulls on this one. Stop can be set below the 20-day MA (very tight) or at the November 4 gap low of $12.96.

Daily:


MERC: Great pattern on the pullback, printing significantly lower volume bars than the preceding spike. May test the 20-day moving average (dotted green) around $6. Expect a move higher soon.

Daily:



AXTI: Orderly pullback. The volume was a little higher than ideal, but the October 29th gap low (7.45) provides an easy exit point. Seeing that the AXTI is very close to that point, there's a favorable risk-reward scenario being presented here. A bounce should yield at least 3-4% on the upside, while you're risking less than 2% with a stop-out. AXTI is also around an eight-year high on the long-term chart (not shown)

Daily:


ACLS: Volume pattern is near-perf
ect. Huge share turnover on the run from 2.1 to 2.8, and low volume on the way back down to 2.5. Found support today before even touching the 20-day moving average, which bodes well considering all major indexes are below their respective 20 day MAs. Also note the weekly chart (2nd), which shows ACLS entering a large long-term gap. The 200-week moving average (dotted white) is separated from today's closing price by more than 30%. Plenty of opportunity to profit in this one.

Daily:


Weekly
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