I wanted to bring a stock to your attention here in The Hideout as it’s exhibiting some interesting characteristics and possibly setting up for a play soon.
ROVI had trended steadily higher from the July low to early this month. However, it turned sharply lower as it gave back more than 15% in just a few sessions. Here’s a look at the initial drop, and I actually had wondered if it might offer some kind of exhaustion-type play on the long side after such a sudden, steep drop. Fortunately, I never did buy it.
Since then, ROVI has seen bounces carry to lower levels, while the $28.10 area has started to offer some near-term support. This means the stock is creating a descending triangle pattern and we could soon see price resolve this pattern to the downside if that support zone is broken.
There is an unfilled gap to the $26 area which I would expect the stock to gravitate toward if short-term support gets cracked. Earnings are due out on November 5th after the close according to this site, and I have zero intentions of having a position once that comes around. Before then, it might offer a play though.
In the spirit of interesting charts:
NXTH appears to be in a parabolic uptrend on the daily chart. What is interesting is that for the last month or so, it always opens at least as high as the previous day close and only once has gone down more than a penny or two from the open. So it seems like it can be played for +10 or so on the day and even might be an overnight. Of course one needs to buy a lot of shares, but it does trade a lot (just slowly)
Yikes, OTCBB stocks scare me more than Halloween!
To your credit Jon, it has been a consistent climber, but watch out if the liquidity dries up…high risk involved there.
Jeff
Yes, absolutely the volume is key (Though I confess I have no comprehension of why this would have so much volume). I’ve been examining the intraday chart, and it’s almost like it just sits and waits for the EMA20 on the 5min to then go up a penny, rarely see a failure of the MA line.