The No. 1 Way To Profit When Tech Leads Higher Keithley Instruments (KEI)
This exceptional stock gained over +3000% at the start of the last bull market and it is ready to soar again in the second half of 2010… Spurred by a international recovery a need for products used to source, quantify, join, control or converse direct current (DC) or pulsed electrical signals is climbing. New orders from Asia, the Americas, and Europe will missile this company back up the charts. Keithley Instruments (KEI) looks like a sizzling buy right now for Monday, June 21, 2010 as a result of both a fundamental and technical point of view. At a elementary level, the corporation trades at a forward PE of 11.5. If you examine the PE on the Technology sector as a whole, most businesses are trading at a PE of 17. But it gets even better! Sales increased by 25% the last quarter YOY. I also love the press release that Keithley Instruments (KEI) a short time ago upped the dividend. So now we have a the outcome of a considerable increase in sales and the company upping their dividend as a result. On the weekly chart there’s a giant Cup and Handle pattern formation. The cup has already completed its formation and the descending move of a handle looks to be over because in the daily chart we see a Bullish Flag break. One thing that will really jump out at you about the weekly chart is the growing volume. Wow! The incredible increasing volume implies that professional traders have only just awoke to this business. The daily chart does not boast an alligator cross thus far of the moving average lines however the hourly chart does. My wager is that the daily chart will eventually show this cross over the coming days and weeks. On the other hand the daily chart does illustrate something extremely bullish, a Bullish Flag breakout. This Bullish Flag breakout is one of the best money making stock chart formations you will find because you are never chasing a stock but rather buying at a discount. With this situation, I wager the Bullish Flag break suggests we are at the floor of the handle on the bigger Cup and Handle pattern on the weekly chart. The hourly chart has the alligator opening his chops on the moving average lines. This is a incredibly bullish pattern I really like to witness. Then again you have to keep an eye on the falling volume. The volume has dropped into the upward move. I bet some of this decline in volume can be contributed to the options expiration Friday effect where volume either drops uncommonly low, or the trading session is very volatile. These appear to be the two actions that come about most often on an expiration Friday. However, if you intend on buying Monday morning like I do, you’ll need to use caution on your entry. My strategy for Monday morning is to look for good volume and buying. If I witness it, I’m at once in and I will let the chips fall anywhere they may. If the Monday morning volume is neutral and I see selling, I’ll bring up a tick by tick chart and time my entry after the sell off has finished. For more technical analysis go to point and figure charts and to discover the strategies of millionaire traders go to stock traders |