 |
| Gator's Chart of the Day: FIRE |
October monthly options expire today and there is likely to be some vicious action in tech with IBM and now GOOG missing estimates this week. I think FIRE has a good chance of holding this support line. Note the tall green volume bar that printed Thursday. If you look at the intraday chart you'll see the stock moved steadily up all day and did not dip when the GOOG news hit the fan. I am not currently in the stock but I have owned in the past. (Like when it hit this level in July.)
The Trade
Don't buy if the market is down. Friday may not be a good day to start this trade so if you do buy some stock don't go crazy. The stop would be just below 40 so that's fairly loose. This also suggests the first buy should be relatively small. The target is the top of the channel which would include a move through the 200, 20 and 50 day simple moving averages.
