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Fletch
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20 years of Equity/Options Trading experience in various capacities as a Market Maker, Proprietary Trader & Execution Sales Trader.
My company:
Voodoo Trades
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  • XIDE - bullish wedge forming, earnings June 2 0 comments
    May 31, 2011 10:28 PM | about stocks: XIDEQ

    XIDE - Reports Q2 on June 2nd, Thursday, estimate 0.25.

    Showing signs of a bullish continuation of its uptrend that began Aug/Sept 2010 and ended February 14, 2011 where it reached its 52 week high of $12.68.  In this particular case earnings are only 2 days away and while this could be a run-up into the numbers, recent earnings history with the exception of Aug ’10, have all been beats with gap ups after the announcement. Past reaction to earnings -good or bad- has been severe.

    History

    Prior to today’s unusual volume of 1.4mm (2x the 200 day avg volume and 2.73x the 5 day avg. vol) the stock had been backing and filling since mid April making modest lower lows on consistent volume between 550k & 684k. Today’s volume spike may be an indication of a higher move in the making for the short/long term. In support of this are both the RSI & MACD. The RSI began resuming its uptrend on May 24th and is now passing thru neutral on its way higher. The MACD is also beginning to follow suit, just below neutral but moving upward, of the RSI. When these two indicators are coming out of their respective depths like this it can prove to be a powerful move. Still I am waiting for confirmation.

    Targets

    I am looking for a close above $9.98/$10, where the last moving average resistance lurks, on the similar volume to that of today’s which would indicate that a resumption of the Longer term uptrend from last Aug/Sept is about to resume. Therefore on a close above $9.98/$10 I would initiate a long with a near term target price of $10.84 on the low end, $11.27 on the high end. Should it reach my high end target within the next 2 to 3 weeks $11.82 is not out of the question further out.

     

    Support levels, $9.61, $9.27, $9.03

    Resistance levels, $9.98 (last moving average resistance),$10.84, $11.27, $11.82

     

    Buy Trigger – a close above $9.98/$10 on similar or better volume to today’s @ 1.4mm

    Stoploss trigger from $9.98 - 7.5% = $9.23

     

    Price Targets from $10 entry

    1)     $10.84 = 8.4%

    2)     $11.27= 12.7%

    3)     $11.82= 18.2%

    Stocks: XIDEQ
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