We've been nursing a position along in FIO this morning, and it is not without its difficulties as the stock tends to be volatile. While the buyable gap-up this morning is out the window given that the daily chart now shows that there is no gap in the formation thanks to the stock turning red earlier in the day, today's action could simply be a standard base breakout from a cup formation without a handle. This is also supported somewhat by the fact that the stock's action today qualifies as a pocket pivot, and given FIO's volatile nature one might consider the v-shaped position a possible exception to the rule. In any case, if the action remains positive in FIO than it is possible that a decent upside move is in the cards from here if it doesn't reverse and fail on us. We are already long this thing, and all we can say is that if you choose to play FIO here then fasten your seatbelts.
PPR - FIO a V-Shaped Pocket Pivot - an Exception to the Rule?
|Published:||3 Nov 2011 18:10 ET|
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2021 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.