Monday, October 19, 2009

TIVO - BUY SIGNAL - Ascending Triangle Breakout

TIVO - BUY SIGNAL - BUY CONFIRMED - October 20th

Today TIVO gave us a BUY SIGNAL for an ascending triangle formation, after having a breakout above its critical resistance level at $11.00. We should get a BUY CONFIRMATION tomorrow if the price holds up above $11.00. TIVO has some resistance at $11.66; a break and close above this level would give us a STRONG BUY. I have taken a long position (anticipating a BUY CONFIRMATION) at the close at $11.30, with a stop loss at $10.75. TIVO has support around its 50 day MA at approximately $10.44. However, a move around $10.75 would mean that TIVO will have fallen back (reversal) within its ascending triangle trend, and would most likely go as low as $10.44 before having a chance of bouncing back up. Therefore, there is no point on taking on a higher loss than we need to and that's why my stop loss order is higher than my usual -7.00%. As I indicated a close above $11.66, would give us a STRONG BUY, but it would be preferable to see a second consecutive day of gains before confirming the STRONG BUY. Despite that, since I cannot always be in front of my computer at each significant moves, i have a set a Sop Buy order for more shares at $11.75 (approximatelly an additionnal 27%-32.5% cash of my max intended investement for TIVO).

Please note that I will be soon posting my updated trading strategy Y-Swing 2.5, which will explain my reasoning towards my change in strategy regarding how I set set my stop orders.


Long TIVO@ $11.30 - Stop Loss @ $10.60 (-6.19%) - Stop Buy @ $11.75 (+3.98%)
Posted by Yoel at 6:50 PM

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

DISCLAIMER

The analysis and information given on this site is for information purposes only. Trading in these strategies may result in capital loss. Individuals should do their own independent research or consult an investment advisor before taking investment action. All materials on this site, including the stock picks, are for news and entertainment purposes only and are provided on an "as is" basis and without warranties of any kind, either express or implied.

Under no circumstances will yoel stockpredictions.blogspot.com be liable for any special or consequential damages that result from the use of, or the inability to use, the materials in this site, even if advised of the possibility of such damages including, but not limited to, negligence. In no event shall yoel-stockpredictions.blogspot.com have liability to you for any damages, and losses for accessing this site or using the information provided.Yoel-stockpredictions.blogspot.com does not guarantee that the information contained herein or distributed from this site will be uninterrupted or error-free, that defects will be corrected. Past Results are not necessarily indicative of future performance.

Yoel-stockpredictions.blogspot.com does not trade against you. Some sites are using the size of their visitors to 'move the market' and take advantage personally with their stock picks. This is illegal, and mostly applicable in smaller less liquid securities, which are not covered on this site. It is highly unlikely that the articles in this site about stock picks could ever move the market.

As a visitor to this site, you acknowledge and agree that any reliance on or use by you of any information available on this site shall be entirely at your own risk. In no event shall yoel-stockpredictions.blogspot.com be liable for any direct, indirect, consequential or exemplary damages arising from the use or the performance of this site, even if will yoel-stockpredictions.blogspot.com has advised of the possibility of such damages. Trading may not be suitable for all visitors of this site or the information provided by this service. The visitors assume the entire cost and risk of any trading they choose to undertake.