Let’s Make a Dinner Reservation
- Posted by Greg Harmon
- on December 13th, 2012
The Holiday Season has everyone getting together to have a good time. Quite often this happens with large groups or just a handful of friends going out to dinner. And what better way to make a dinner reservation than using Open Table, $OPEN. Sure that might be how they would market their product, but it might be a better idea to market the stock. Yes this is that darling of momentum lovers that flew meteorically through 2010, as seen in the weekly chart below, before crashing without a parachute through 2012. Since being left for dead it has been consolidating in a long
symmetrical triangle. As this is going on the Relative Strength Index (RSI) has been slowly climbing. Now it sits at the top of that triangle again, with a move over the top giving a target of 70.50. Zooming in on the daily chart shows that there are some good reasons to be prepared for that breakout to happen. Yes the topping tails at the trend line resistance give a pause, but that is fine. It is only a buy over that trigger. And the RSI on this timeframe is bullish, rising and making a new higher high. The Moving Average Convergence Divergence indicator (MACD) is also positive and
rising. The Simple Moving Averages (SMA) are turning up and it is clear of the large volume at price bars that sit at 47.50 and below, acting as a bit of support. This also has over 35% of the float sold short. That is some serious fuel for a squeeze. So make a reservation to own this stock on a move over that trigger at 49.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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