Andrew, all my picks are based on TA study.
Because of that, I almost never have background on a company, other than the TA info. I only research a company when I decide to buy it, but if the chart is promising, I don't care about the fundamentals.
Since fundamental data is history, and the market is forward looking, the price action can have little to do with the current state of the company. Psychology is also a major factor in market prices, and that is hard to get from fundamentals.
On PTIS, the stock moved above 6 months highs on VERY high volume. I think it may be subject to profit taking early next week, but after moving back to around 4.75 will continue it's present surge. I figure my target of 8 on standard TA extrapolation methods. Simply put, PTIS has put in a head and shoulders bottom between a high of 5.25 and a low of 2.25. Take this 3 point difference and add that to the breakout line at 5.25. Although PTIS has yet to break the 5.25 barrier, I feel confident it will based on last weeks price volume action. A 50% retracement from here to 4.75 is not only normal, but would also test support at what was once resistence for PTIS.
Bottom line: buy it on a pullback to 4.75 if it holds support there.
If it doesn't pull back Monday and tuesday, buy if it breaks above 5.50.
Happy trades to you, until we meet again...
Kevin |
