Thursday Morning Thread

Gator's Charts of the Day: CIE STX

CIE

STX

I couldn't decide between these two volatility squeeze candidates so I flipped a coin ... no help ... it stood on edge so you get a twofer today.

Actually the analysis is the same for both.  After a gap up the stocks are trading sideways on average volume just looking for a catalyst.  Although the 200 day moving averages are well below current price the 50 day is providing near term support.

With the long weekend coming it may not be prudent to start new positions but you may want to set price alerts that will bring your attention to a move to the upside (or if you're one of those nasty short sellers, to the downside.)  In any case if the trade develops it seems prudent to put a stop just under the 50 day for a long position or just above it for a short entry.  (I assume the short short position would be established under the 50.)