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

May 02, 2013

Taking a position in SNDK

I've been mentioning on stocktwits about how I like SNDK and the semi space in general.  Today I took a long position

Let's take a look at the daily chart



The idea is the stock may be bottoming.  If not we are risking about 4% to get an attempt at the old highs about 12% from here.  Ultimately we want to hold this for the larger target displayed in the next chart.  RSI suggests we could be at a tradeable low while relative strength says not so fast.  Ultimately I stuck with price and if it fails we'll bail.  



The key level here is the range upper boundary around 54-55.  This is the same level that where the stock stopped late last week and formed the top of the range.  Needless to say that is a very important price point!

If this works it can be a great position hold for months to come.  If it fails, well at least we took a shot with decent risk/reward and odds in our favor. 

Good luck out there.  If you like what you see give me a follow or a shout on twitter or stocktwits.    


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