Morning Thread

Gator's Chart of the Day: FIO

Today I'm taking another look at Fusion-io.  The company has had some new sales announced recently and it has also come to light that they are being used by Facebook and CRM, both high growth companies with demanding storage/access requirements.  More news could come from the Morgan Stanley Technology, Media & Telecom Conference on Tuesday (2/28 at 7:05PM EST.)  Over the past 2 weeks a lot of stock has been positioned for possible sale by early investors so we could see some big price moves when the next lock up expires.  That could provide a good entry (or add) point.

The stock gapped down on it's last earnings announcement (Jan 24) and trading last week filled the gap.  Rumors of a take over of FIO by multiple companies (INTC, DELL, EMC among others)  were also circulating and the stock also received another "Najarian pump" from Dr. J. 

The chart shows recent support at the 50 day sma (25.65) with stronger support around 23.  I expect resistance at 30 and even more at 33 which was the announced price for a follow on offering.  Average daily volume has been increasing for the last couple of months and I don't expect that trend to change.

I am looking for an opportunity to start a position but I am also going to wait for the price to come back to the 25 area.