This breakout turned into a fakeout…which turned into a breakout. Go figure. (January 16, 2013)
QLGC
I’m Dan Fitzpatrick at StockMarketMentor.com on Wednesday, January 16th. In this video I want to look at QLogic ( $QLGC QLogic Corporation ), this is really and interesting setup. Yesterday the company announced earnings for the last quarter, and you can see what the stock did; it gapped up there, closed down, basically sold off hard all day, volume was pretty heavy. Now this is a classic sell signal, you know, okay, Great! The company’s stock started a nice uptrend, a little reversal, this move here, gaps up, trades off. Oh! Got to get out of that stock. Well that was true up until today, where the stock essentially printed like a bullish engulfing pattern, not quite, but close enough. What a bullish engulfing pattern would be, would be a gap down below the prior days intraday low, didn’t quite get there but close enough, and a close higher than yesterday’s intraday high; we’re almost there, not quite, but when you look at the volume, also pretty heavy, this is a stock that’s really under accumulation, now. You can see how badly it’s traded off, I think this is a stock that any kind of pull back, now it’s short term overextended, way up above the upper Bollinger Band, but any kind of a pullback into here, $10.50, you know, anywhere down around there, is a pull back that I think you want to take advantage of, because my bet is a couple months from now you’re going to be glad did. Okay members get over to the Strategy Session now. Free Chart