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Fletch

Fletch
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  • XIDE follow up [View instapost]
    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
    Jun 6, 2011. 12:05 PM | Likes Like |Link to Comment
  • From 3M Company (MMM +3.9%) CEO George Buckley on the earnings call this morning (full transcript later): "We see no meaningful improvement in most major industries yet. The green shoots are certainly there, we admit that. We just want to be sure that they aren't weeds."  [View news story]
    Nice analogy. I'm sure they have just the right thing for weeds too.
    Jul 23, 2009. 10:04 AM | 1 Like Like |Link to Comment
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