Trying to Get a Signal – PC Connection

• Posted by Greg Harmon
• on July 2nd, 2014

PC Connection, $PCCC, is a stock that has gone through long periods of consolidation before a big move. The last 2 years of weekly price data in the chart below show the March to October 2013 consolidation before the move higher into year end, as an example. The cycle before that was not quite as long but starts to show some similarities. First the RSI dropped from a peak overbought condition each time but held in the bullish zone, over 40. Next the Bollinger bands grew tighter as it prepared to move. Third the price came in close proximity to the 50 week SMA. All of those indications are in place now. But the final one is not. The MACD crossing up was the signal

to buy the stock. The MACD right now is heading lower but very close to the signal line. A jerk higher through it will give the signal. At that point the triangle break would target a move to the prior high at 26 and there is a 3-box reversal Point and Figure chart Price Objective to 46.50. With over 16% short interest that kind of a move could come quickly on short covering. The company is likely to report earnings at the end of July or early August (was August 1st last year), just 4 bars away on the chart. But it may not want to wait for that catalyst to move. Keep an eye on it.

Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades.

____________________________________________________________________________________________________

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through June 2014 Expiry and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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