Registered User
Joined: 10/7/2004
Posts: 2,181
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Good morning;
Sorry to post and run but these, I believe, have some value to review.
IIJI (I pointed this one out around Oct 06 at a little over $8), I think it's heading for $13. From there it will have to decide to fall off a cliff or shoot for its next significant resistance level of around $29.
IIJI has a tendency to jump (I've gotten double-digit one-day returns on more than one occasion with this stock). It's been bouncing off of the 50ma lately. It looks primed to do that again. HNC's indicator looks good, the linear regression on short-term stochastics is pointing up (for new people here, we discussed this indicator a while ago and this is a good example of its use). And it's sitting right on the 50ma. Finally, other internet stocks are looking good.
Now, AVNR, (my sincere apologies to those that don't appreciate the discussion of low priced stocks). I'm primarily bringing it up to point out the buy-at-a-penny-over-the-high-on-consecutively-descending-highs strategy. This was a good example. Late Jan and late Feb gave signals of buying desire, then on the last trading day of Feb and on into March it dropped off the precipice and, day by day, the highs of the day were lower.
Keeping an eye on it daily and moving a conditional buy order to one penny over the high of the day got me in at around 1.15. It closed at 1.37.
Please note, the buy-at-a-penny-over-the-high-on-consecutively-descending-highs strategy does not work just any time a stock is declining. It comes as a part of a more complete strategy discussed elsewhere on this forum.
By the way, I wouldn't buy into AVNR just yet, I think it needs support from the 20-day lower bollinger band before it's ready for a full scale breakout. But it looks like it might, finally, be worth watching.
Have a great day!
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Registered User
Joined: 10/7/2004
Posts: 2,181
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If you want to buy the next AVNR cheap, look at AVNR's chart for Feb/Mar 2007; it's the ideal setup. Learn to spot these and you'll find some beautiful opportunities.
Of course, it's a real rarity to have them jump like this one did, but you can take part in some real nice moves.
Obviously more risk, you gotta be careful there.
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