11/10/2007

Stocks analysis and trading ideas

Now, let's look at the performace of our previously mentioned candidates for going long.

	ATMGRUPA - Still testing the upper band of this consolidation range and trading above the moving averages, which is a sign of strength. My only concern is that there's hardly any trading activity lately in this stock, so be careful before getting involved.
	BRE - Has broken past its main level of resistance and continues to rise. The nearest price target would be probably measured from the whole base level, which means that if we take the recent consolidation pattern and add its range to the upper resistance band, that would give us a target of 656,00.
	MOSTALWAR - We haven't seen actual breakout here, but the price action indicates, that it's found support exactly on the level of prior resistance and right now is trading above the crossing moving averages. In this case, there is also to little trading activity, to put on a larger betsize.
	CASHFLOW - The 1-2-3 bottom reversal pattern worked perfectly and the stock has managed to get above the longer term moving averages. It's reached the price target of 17, which I suggested in my previous analysis and now, we will probably see a pullback. The nearest support levels are obviously the moving averages in terms of swing trading strategy, so wait for a test, confirmation and then enter on strength.
	ECHO - Previously I put it into the category of 1-2-3 reversals, but as you can see, ECHO has evolved from it and produced a rising channel. As for now, it's testing its nearest target, which is the falling 100-day moving average. The whole move is being developed on a rather light volume, so be careful before opening a long position here. Breaking and staying above this 100-day MA will give another reason for going long.
	EFEKT - This is what I'm counting on in the previous example: a short pullback after testing the 100-day MA and then - return back to its prior position. Now the retest will be crucial in determining further development of current situation. Again, breaking and staying above the 100-day MA will confirm the bullish stance of this stock.
	GETIN - This one is getting stronger all the time. It's already broken through its 100-day MA and has stayed above it since then. We have seen a flat correction on diminishing volume, which indicates little distribution. Remember to wait for a confirmation of the next move. That means I suggest buying the strength, not weakness.
	KREZUS - This one did actually break out on quite large volume, which confirmed the 1-2-3 bottom reversal. Then it pulled back on diminishing volume and found support on the 10- and 100-day moving averages. Now we will probably see a retest of the recent highs.
	HANDLOWY - The inverted head and shoulders pattern worked well and recently the stock has moved above this previously developed neckline. Moreover, this recent rally was fueled by increasing volume. It's also moved above the 100-day moving average, which is also rising - that is a sign of a strengthening market. The upside target remains as before - 140,00.
	MEDIATEL - Sharp bottom is confirmed, now we have to wait for the price to break above the 16,80 level, so we could open a long position again. My bet is for a pullback now. Wait until the price catches the averages and makes a higher high, which will indicate, that the buyers are getting more agressive in this stock. Then pick your timeframe and get involved.