FWIW, that stock just gave a bearish signal reversal (in Point and figure charting language). This signals the end of a down trend, and the beginning of an uptrend, with a high probability of success.
Furhtermore, the stock put in a long white marubozu candlestick last week, on strong volume. This is a strong bullish line, and prices often find support at the midpoint of these lines, on pullbacks. I mention this because the market may correct monday to tuesday on Alan Greenspans speech.
iqc.com
the chart shows %K just crossed over %D at low RSI (35), implying plenty of room to run to the up side. The MACD just had an inflection, from negative to positive, and is close to crossing the zero line (a common buy signal generator).
iqc.com
The monthly time scale shows the bottom bollinger band sloping positive, as the upper BB trends slightly down to sideways. As these converge, this stock could burst up, finding some horizontal resistance, first at $15, and then again around $18 and $20. Most of the open interest is in the december 15 calls, so expect strong resistance there.
Good Luck!
PS I'm going to follow this one. All these companies with hot commercial products geared towards kids have been very emotionally charged. Take a look at KIDE and GRIN (as was mentioned earlier). |
