"Everyone has a plan 'till they get punched in the mouth" - Mike Tyson

August 14, 2011

Chart read: Interclick



In my last Interclick post I was looking for a pullback to enter.  Now the stock is in a very vulnerable position similar to many small cap growth names.  The weekly chart shows it has broken it's somewhat generous trendline that has held since the 08' crisis.  It also has broken all key weekly and daily moving averages.  The RSI and MACD indicators also show that there is more downside to come.  Those signs clearly tell me to stay away from this stock until conditions improve. 

If you are interested in owning this stock for longer than a few hours use a very tight stop.  I would simply wait for much better prices.  The prior support levels I will be watching are 5.05, 4.60 and 3.40.  I suspect this stock will take another big beating as the market continues lower. 

Note: I have no position. 

Reminder:

All ideas shown on this blog represent the authors opinion based on the data available.