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TomAspray
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Tom Aspray, professional trader and analyst was originally trained as a biochemist but began using his computer expertise to analyze the financial markets in the early 1980s. Mr. Aspray has written widely on technical analysis and has given over 60 presentations around the world. Many of the... More
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  • Will This Stock Top Next Year’s Worst List, Too? 0 comments
    Jan 13, 2011 11:01 AM | about stocks: RBCN

    chart
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    Chart Analysis: Rubicon Technology Inc. (RBCN) was included on one Web site’s list of the worst semiconductor stocks of 2010 since it was up only 3.4% for the year. I doubt it will be on the list for 2011, and the fact that it is on this list is positive, I think. Therefore, it is a tech stock that I have chosen as part of my report “Seven Tech Picks for 2011,” which will be released later today. (Sign up to receive Trading Lessons here.)

    This week, RBCN looks poised to close above its short-term weekly downtrend, line A, and here are some other positive factors:

    • On-balance volume (OBV) is acting stronger than prices, now above resistance at line C

       
    • The long-term uptrend, line B, at $19.47 held in late December

       
    • Next resistance levels are at $24.60 and then $26.60

       
    • 50% retracement resistance from the July highs is at $27.22 with 61.8% resistance at $29.36

       
    • First support now at $21.10-$21.40 and then at $19.60

    What It Means: Obviously, many investors, and institutions were disappointed by RBCN in 2011 and likely sold their positions before the end of the year. What fund manager would have wanted it to be on record as part of their portfolio? The positive technical readings suggest it may be a leader in 2011.

    How to Profit: Buy RBCN at $22.56-$22.82 with a stop $19.49.

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