QTM - QUANTUM CORP

Above is the chart for QTM - Quantum Corp a company that provides data protection and management services. I used a stock screener to find these types of stocks, the only other option using my filters was AMD and I already have a position in that. So lets get down to the analysis of this chart and try to find a good entry point and exit points. 

As the daily chart above shows the stock is presently in an upward trend and finished strong on Friday January 3rd  2014 with a close price of $1.27. To the left of that candle you will see an indecisive candle or otherwise known as a basic Doji candle. This type of candle usually means that the direction of the stock may change. For instance if the stock is going down then with a Doji candle close of that day the stock may potentially rise the following day but it depends on various factors such as the next day's opening price. As we can see the opening price of the stock on Jan 3 friday was @ the close of the Doji candle which was $1.20 and if you look at the 30 minute chart of QTM on google finance you will see that for Jan 3 friday the stock never went below $1.20 rather it boosted to a high of $1.27 and closed @ that price which signifies massive buying pressure. I wanted this stock to close above $1.20 for Jan 3 friday for me to really see if its worth the buy and that it did!

The weekly chart shows a resistance mid $1.40's range. This will be my second exit. 

We also look at different pressure zones by viewing previous days highs and lows. If this stock does manage to go higher it could hit a resistance @ $1.31. I see a possible fake out above that price only because the stock has been boosting for the past 3 days and typically a fake out can occur in a situation where there hasn't been much selling pressure for a while from my own experience in trading. 

QTM has also just experienced a double bottom pattern and those who entered above $1.21 could possibly be in a nice position. 

My game plan: I see the stock creating a new support @ $1.25 and hitting $1.31 or with the fake out a bit over that price @ 1.33 before the sellers come in and bring the price back down.. Throughout next week I need QTM to show a closed price at or above $1.25 for me to seriously consider buying this stock.

week 1: this stock has been closing above 1.2 mark which is not bad but i'd like to see some more higher wickets on the candle sticks intraday. today (jan 13 monday) the after hours of the stock jumped to $1.40. wow! let's see what happens tomorrow morning when markets could potentially bounce back to the positives again! 

300 Shares @ $1.25 

First exit 150 Shares @  $1.35 

Second exit 100 shares @ $1.45

Remaining position let it ride.

My stop loss is below the 52 week low of $1.10 which is 0.17. 

I'm still uncertain about this stock as I have only been following it for 2 days rather than a week compared to other stocks I trade. But next week i will update my game plan accordingly depending on the stock behavior. For now this is my general idea and we'll see what happens next! 

Week 1: The stock did close @ .25 on one of the 5 trading days and for the other days it closed above .20. what I was happy to see was that it touched .29 on monday January 6th which showed that it had strength to go even higher! and that it did!

Week 2: it opened @ 1.4 with a high of 1.43 it hasnt been this high since beginning of October 2013! Lets see what happens next! 

"these are just my opinions and not a buy or sell recommendation. i hold a position in this company but they Are not paying me to post this".