Wednesday 15 January 2014

SKUL CANDY

SKUL



Im currently in SKUL 100 shares @ 7.65. Its current price is 7.46 and my stop loss is 7.24 which i feel is reasonable. I wanted to give SKUL that extra space since I know it may have the potential of boosting above $8 very soon with its recent TOSHIBA deal. I see it consolidating around the low .40's and potentially boosting after a few down days. It's been boosting since December 16th from the $5's. It does look very far from the 50 MA so it may try to come close to it before bouncing back. This play could have been better had I waited and had my stop loss at below $7. But we'll see where it takes me. I did not really analyze this stock too much before buying it it was more based on news. Clearly you should analyze a stock as much as you can before buying it regardless of news.

"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". 

IDN


IDN on the DAILY 




Couple of points to make here. First you can see there is a support at around .45. Second its bounced off the .45 pretty heavy each time. Third there is a huge bull candle which covers a range between .45-1.00 that is a wide spread! The volume also indicates strong buying pressure for the past 4 business days. Lastly, if you look slightly to the left you will see a long white candle that ranges from .45 - almost .70. To me this shows that the stock has some serious demand still at the .45 regardless of its downtrend. The doji candle showed to us a sign of a pullback at the .45 which also indicates a reversal pattern.


 
                                                                     IDN on the WEEKLY


The weekly chart shows us good buying signals in a different perspective and we must always try to incorporate different chart periods when observing potential plays. What we you see here if you break up the pattern into segmented parts then you will find its forming a Flag formation (higher lows + lower highs). Typically Flag formations come to an ultimate point where it will consolidate then pop or drop. I believe this stock will go up in value because of the signals described above but if it doesn't for some reason or another I have placed my stop loss below the 52 week minimum @ .24. My position is 400 shares and the first exit im taking to lock in gains is 0.7 releasing 140 shares and locking in $30.

Next exit @ $1.00 releasing 55 more shares locking in about $30

Remaining 205 shares  "ride or die" 
205 @ $2 = $310 
Stop loss = $100 Loser

"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". 






Saturday 4 January 2014

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".