Despite the weak general market action with the indexes bouncing on lower volume today and the Dow Jones Transportation Index tgetting hammered, we note that Facebook (FB) is issuing a pocket pivot type of breakout as it emerges from a little cup-with-handle formation on the daily chart. VoSI webinar subscribers may note that we originally discussed FB as a possible buy off the 27 price level using the 1998 historical precedent of then IPO eBay (EBAY) as the basis for buying an initial positon in the stock. One possible cautionary factor here is that a) the 10-day moving average remains well below the stock at 30, and b) the stock was wedging ever-so-slightly over the past three days before issuing this breakout pocket pivot. Mellanox Technologies (MLNX) is trying to push back above its 10-day moving average as it appears to be on track to trade enough volume to exceed the volume of three days ago, the largest downside volume in the past three days. We would remind members, however, that the market is under a little pressure as a result of yesterday's sell-off and the weak volume in today's general market rally. These stocks, however, are stand-outs and should at least remain on one's buy watch list if the general market situation improves, but we think it is important to take note of today's positive action in both stocks.
PPR - Pocket Pivots in Real-Time: FB and MLNX
|Published:||22 Jun 2012 17:52 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. ©2018 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.