Sunday, January 23, 2011

OPXT Opnext, Inc

Here is a small cap I will keeping a eye on which I like long and mid term. I love the W pattern ( draw out in blue on the chart 1) that its form and I think we are about to form the V part af the pattern. The market at a whole is over bought so I will be paitent and wait for a pullback and the V part of the pattern to form. I like the 1.70 area because I see some support forming there. The 200 average on the daily chart is around that area and the 50 is working its way up. I love to see the 2 averages intersect around that area with the stock pulling back there. If we get to 1.70 looking at picking up 1/2 a position then wait to see the pattern play out.
 Now here is a long term chart (3 year weekly chart) and what pattern do we see starting to form. The answer is W (drawn out in blue). Now it has to keep the trend moving up to 3.28 to form the 1st part of the pattern. But what I like about this stock is 2 different time frames looking bullish.The daily bullish and the weekly  bullish. Another part of the puzzle is the MACD. It is showing divergence in the weekly chart and if you look at the daily when the W formed  there is divergence on the MACD there too. Again this is my  interpretations of technical charts and any trade should be discussed with your professional investor before performing any trades.

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