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I want to highlight in a brief post, using Finisar Corp. (FNSR) as an example, the importance of looking at multiple time frames when stalking a stock of our choice. I was looking through the "Networking and Communication Devices" sector. I noted that FNSR had not broken down much, and it has a whopping short interest of more than 20%.

Here's the first chart that I pulled (click to enlarge):

Looks a little toppy, does it? I decided to step back and view a longer term chart using a weekly format. Weekly charts are my favorite time frame to scan for attractive set ups. Here's the weekly chart (click to enlarge):

This is a very attractive looking chart, to my eye. I'm going to posit (v. predict!) that if it breaks that volume bar, it is going to singe badly the large bearish position. With the whacky market last week, let's take a look at the 60 minute (click to enlarge):

I would watch the box where it bounced.

This stock has lots of institutional sponsorship. If you've stock voyeur proclivities, you might find this website interesting. I use this quite a bit to poke around. It is free, but you have to register. I find it to be one of the easiest to use to look at what big money (I didn't say smart money!) is doing. They have a premium product, but I do not use it. It also notes for stocks what rank it is in the institutional portfolio.

Position: None, but I would consider a long here.

Source: Investment Considerations: The Importance of Time Frames