BullBear Trading: Stock and Financial Market Technical Analysis

An interesting setup: Flotek Industries Inc. (FTK)

My long term stance on the current market is bullish. Therefore, I am inclined to giving greater importance to any bullish signals I see in a stock's chart.

 

Here is one interesting bullish setup that I wrote about on my blog before markets opened on Wednesday December 29th. (FTK is up 28% since I wrote about it).

 

 

Original post (published before open on Wednesday December 29th):

 

 

"Flotek Industries Inc. is a basic materials company. This sector is currently in a very bullish uptrend (take a look at my previous pick: Dynamic Materials Corp. for an analysis of this sector). To analyze this stock I am using an Ichimoku overlay on FTK's weekly chart as shown below.

 

NOTE: For details on Ichimoku Charts read Ichimoku Charts: An Introduction to Ichimoku Kinko Clouds.

 

 

FTK closed at $4.25 a share on Tuesday, December 28th. On the chart shown
above I have marked four regions where strong bullish formations are

appearing.

Region 1: In early November FTK's price moved decisively above both the conversion line(blue) and the base line(red).
Also, during the same week after almost 3 years of trading the stock

broke above the Ichimoku cloud. This is a very bullish signal,

especially if the breakout occurs after a long period as in FTK's case.

Region 2: Since the cloud is shifted 26 days, it provides a glimpse of future
trends. On the chart above it can be seen that the cloud turns from red

to green indicating bullish moves in the future.

Region 3: This part is really important. It can be seen that all the above mentioned
technical formations were supported by huge trading volumes. High

amounts of volume makes breakouts more reliable.

Region 4: Finally the sharp upward turn in the stock's RSI is a strong indication of rapid bullish progress for the stock in the future.

 

 

FTK's daily chart is also showing some interesting formations.

Notice after the most recent upward rally, the stock is now trading in a
narrow symmetric trading range. A breakout above this range will mean

another bullish run. While a breakdown will indicate a short term

correction. So, the daily chart is also worth keeping an eye on.

 

To sum up I think FTK is presenting a good long term investment for a hold
period of six months to two years. Good sell points can be past

resistances and supports around $10.00 and $15.00. This can give a

decent 100% to 200% profit.

 

 

NOTE: One of my previous picks Geeknet Inc. (GKNT) is up 25% in just over a month. This can be a good sell point for short term traders.

 

That's it for today. Don't forget to subscribe for regular feeds."

 

 

This post was from  Faizan's Stock Picks .

 

Just wanted to share it with you guys.

 

Views: 150

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Comment by Mohammad Faizan Azam on March 4, 2011 at 12:20am
My new post is up
Comment by Mohammad Faizan Azam on February 21, 2011 at 1:49am
Thats true... HDY is a very good buy right now
Comment by J CHAN on February 21, 2011 at 1:20am

Encore on HDY? Up 50% from low.  Up 2 days in a row on big volume.

Comment by J CHAN on February 17, 2011 at 3:02pm

NVDA and LNG running this morning. Also BSQR.

Comment by J CHAN on February 15, 2011 at 11:26am
I better raise some cash so I am prepared to buy your picks.
Comment by Mohammad Faizan Azam on February 15, 2011 at 4:18am

I'll be posting pretty soon ... probably on Friday.... the thing is I have been very busy lately...

the stock market looks in very good shape and several stocks are about to explode... I'll post my new pick

Comment by J CHAN on February 14, 2011 at 9:07am

Time for any other posting.  Not 4 days after. Not taking off for over 1 plus month.

Comment by J CHAN on February 4, 2011 at 11:41pm
Can't leave out LCRY.  TNAV may not finish. Stare this guy right at the gate.
Comment by J CHAN on February 4, 2011 at 11:32pm
Which one you bet your money on?  BSFT, EMAN, EXEL, GLUU, MGIC, PZG, SKH AND URRE.  They all looks like they are about to start to run.  Market, please cooperate.
Comment by J CHAN on February 4, 2011 at 8:50pm
Sorry, can't tell the difference between the Monsters and the Babies or the fakes. I can only match that with CAB, EP and MENT.  Caught good runs on SKH and HYC alsmost by luck. Still hold HYC.

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