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: 155

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Comment by Mohammad Faizan Azam on February 3, 2011 at 12:32pm

yes, FFIV is acting good.

I got a position on EEE 4 days ago at $2.67. It has been behaving  similar to FTK and is showing a decent paper profit in just 4 days.

Comment by J CHAN on February 3, 2011 at 11:47am
FFIV starts to move up. Two right horses show up.
Comment by J CHAN on January 26, 2011 at 2:15pm

No News on GKNT.  Sorry, not touching anything below the Ichimocku Cloud as a rule.  There are a lot of seller ready to jump on such stocks.  I am not fast enough to get out.

Comment by J CHAN on January 26, 2011 at 1:10am

Good call on HDY.  Thanks. Almost wanted to buy it for the third time.  It did gave me two servings before forced me out at $6.20.

 

I have a tough time with the fakes.  Just the other days, I was hit by two fakes IDT & ZAGG.

I now use a stop below 6-day low on all purchases. It is good that I now have XLQ to calculate the stop price.  Otherwise, it is a major task to read chart to determine the stop price to use. What do you think I need to do to increase my wins and limit my loses?

 

GKNT is acting similar to FFIV.  Louis Navellier just called FFIV a screaming buy. Thank for the tip.  Mitch King that I follow for a while loved these oversold situations.

 

I like to buy on breakout & reveral at TAZ and hold for longer term and bigger gain. But most will not fly, up 8% and back down 8% and worse turning into loses.  You know, I cannot stand sitting with a stock booking more than 8-10% losses.  I try using stops and try not using stops and not yet able to find a way that I feel comfortable with.

 

 

Comment by Mohammad Faizan Azam on January 25, 2011 at 1:31pm
Just to add to that: keep an eye on GKNT. It looks oversold to me, and might be ready for a good  upward move.
Comment by Mohammad Faizan Azam on January 25, 2011 at 1:19pm

That's right both PBY and MPAA are showing good technicals. In particular I like MPAA better, merely due to the fact that it has no overhead resistance at all.

AZO's pullback I think will continue for a bit more time.

 

Also, HDY today opened at a loss of more than 30% compared to Monday's close, and was traded on heavy volume. This confirms my suspicion about the stock. Avoid this stock at all costs (for now).

Comment by J CHAN on January 24, 2011 at 1:42pm

Your website site vedio lead to a malware Click.Potatao.  ?  ?

 

While AZO is still in midst of a pullback, PBY and MPAA, whcih belong to the Auto Parts Group appears to be breaking out.  You Opinion.

Comment by Mohammad Faizan Azam on January 23, 2011 at 3:39am

HDY has been in a bullish uptrend since August, while FTK just broke out in November.

 

Seems like HDY has overextended itself and last week's huge correction is a proof of that.

In particular I don't like the high trading volume on HDY's recent downward moves. It could signify a further decrease before HDY hits solid support and starts consolidating again. But then again the fact that HDY is in a strong group and we are in a bull market, may prevent a deep correction.

 

 

To sum up this stock seems too unpredictable as of now. I won't bet on HDY.

Comment by J CHAN on January 22, 2011 at 9:33am

Mohammad,

 

Can you start a group?  I will be your first member. 

 

JOhn

Comment by J CHAN on January 21, 2011 at 8:46am
HDY pullback 31% while FTK only pull back 5%. Why?

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