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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
My blog:
Voodoo Trades
  • XIDE follow up 1 comment
    Jun 2, 2011 10:33 AM | about stocks: XIDEQ
    No action taken on XIDE since it did not close above $9.98. Obviously a good miss in light of missing by .10 last night (.15 actual vs. .25 estimated). That being said, stock is down hard off -22.45%  as of this note. Definitely some day trading opportunities in here today. Last line of moving average support is $7.38, resistance 8.24.
    Stocks: XIDEQ
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  • Fletch
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    Author’s reply » SQNM - Potential Breakout in the Making.
    There is a possibly breakout in the making here in SQNM.

     

    Brief Chart History -

     

    Better than expected earnings on May 5 (.13) vs. expected (.19) gave this a boost to $8.46 on May 10 followed by a pullback to $7.5 on May 25th. Today it created new high by .18 at $8.64 (vs. May 10) and it has continued to make higher lows since March. Has been in a Long Term uptrend since Oct. 2009.

     

    Currently -
    RSI is showing signs of continuing higher and is currently near the high end of its neutral range along with the MACD also just off recent highs but near the the higher end of its neutral range. On the 2 year daily chart, it is well above moving average support @ $6.99, $6.78 & 6.36 with Fib support kicking in @ $8.11, $7.47 & $7.10. Today's volume is on track to surpass its 100 day avg of 2.44mm. All of these indicators are pointing higher.

     

    While the daily chart is strong - pay attention to the 5 year weekly chart in SQNM. I am showing a convergence of two moving averages that, as of this note, are currently in support @ $8.38 & $8.54. This is significant for the long term - here is why.

     

    When these moving averages on the 5 yr weekly become (in this case) support, they provide a base for a prolonged, longer term move and in SQNM I believe higher both intermediate and long term. Because it takes a long time for these support/resistance levels to be breached they are considered to be stronger than those on the daily charts. This also means they may require a longer holding period (3 months max for the Voodoo Trader). I believe that SQNM is going to breakout of its year long trading range here.

     

    I am looking for a close above $8.54 on better than average volume to initiate the LONG with a near term target price of $9.81 with a potential upside to $11.52 further out (hopefully before my max holding period is up.).

     

    Targets from $8.54 Stoploss @ 7.5% from $8.54 close = $7.89
    $9.81 = 12.94%
    $11.52 = 25.86%

     

    Support Levels $8.38 (moving average), $8.11, $7.47, $7.10
    6 Jun 2011, 12:05 PM Reply Like
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