Dr. Thomas Carr's  Instablog

Dr. Thomas Carr
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Dr. Thomas K. Carr (aka “Dr Stoxx”) is the Founder of DrStoxx.com (formerly “Befriend the Trend Trading”). He holds M.Phil. and D.Phil. degrees from the University of Oxford. For 16 years he was a tenured professor and department chair. He currently is a fulltime trader, market analyst, trading... More
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Market-Neutral Trading
  • MITK: Nice Looking Breakout Forming Here 2 comments
    Jan 24, 2014 3:08 PM | about stocks: MITK

    I was fiddling around with one of my screens as described in Market-Neutral Trading to create a watch list of strong growth stocks coupled with charts that are near breakout levels. One of the best looking charts that filter through the screen was that of Mitek Systems.

    Shares of software developer, Mitek Systems (NASDAQ:MITK), broke above resistance on Thursday on above average volume. They have pulled back today with the market. But this "reset" and test of the 50sma clears the way for another breakout attempt soon.

    MITK holds 19 patents in mobile technology applications. Its various products are used in mobile image capture and have a number of ecommerce applications. The company is not yet profitable but it sports some very impressive growth numbers as see below (courtesy of Finviz.com):

    (click to enlarge)

    The weekly chart of MITK shows the developing breakout in progress:

    Here we see a recovery uptrend off a well-defined double bottom with the $5 pivot price acting as support. A close over $7 on strong volume would signal to many that shares have room to run higher. The pattern seen on the chart projects to a target area of $9.50 - $10.

    Blessings and happy trading! TC

    Disclosure: I am long MITK.

    Stocks: MITK
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Comments (2)
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  • Gino Verza
    , contributor
    Comments (409) | Send Message
     
    Dr. Carr,

     

    One month into your Instablog on Mitek. Has your view or target area between $9.50 - $10.00 changed?

     

    Thank you
    25 Feb 2014, 05:33 PM Reply Like
  • Dr. Thomas Carr
    , contributor
    Comments (101) | Send Message
     
    Author’s reply » I'm not interested in it until it breaks out. Likely not for some time now.
    26 Feb 2014, 11:00 AM Reply Like
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