Thursday, January 30, 2014

The Prophesy is True! Charts can predict the future!

                                   After Market Update on $WYY $NURO

  What an exiting day for swing trading and reversals. If you followed my previous posts and analysis you are most likely made great gains on those reversals. Check out my previous blog posts if you have not and you find out that all 3 predictions were spot on. At this point I am fully invested in WYY & NURO so I would like to start my update with them first. As always, please keep in mind this is just my personal opinion and I can be wrong in my indicators.

Widepoint Corp (WYY)

 I am still very bullish on WYY even with  kind a neutral trend. WYY is trading sideways at the moment. Closing two days in a row with Dojis indicating the market is confused. I would usually pay more attention to those Dojis if we were at the resistance or higher highs but since we are in upper trend and slightly moving upwards I would not pay much attention to them. I am a little bit worried about volume here and I will be watching it closely. I can see Volume increasing near 1.60 price range this would confirm a future break out for me. After all WYY has been holding its gains very firmly. I personally like this company and I can see a lot for it in the future. I really like WYY's book value. Lets take a look at its competitors in the Industry like Tangoe, INc.(TNGO) which is trading $18.37 per share. By playing with book values and adjusting it to WYY I came up with a value of $2.62 per share assuming WYY would keep the current market cap and won't expand.

Neurometrix Inc (NURO)

What a great run for NURO today closing  above 2.40 confirming a reversal .It perfectly followed my previous chart form yesterday. I updated today's chart after market. Again it should be self explanatory but there is a few things I would like to add.    It looks like its ready to break out through 2.50 area so we might see two scenarios tomorrow morning confirming a continuation of the uptrend. One of them opening with a gap above 2.50 in that case we will have a new established support @ 2.50 and next break out through 2.65. But..... Knowing this stock and extreme Volatility it has I would not be surprised to see a pull back to 2.30 again and then forming a triple top candle @ 2.50. Long term NURO is still a great deal with Earnings Call coming out on Feb 13th and recent %7 increase of Blackrock's 13G ownership it positioned to go higher all the way to $3.00 mark. On that note I would like to share my #1 Proven Rule I learned hard way in this market multiple times. 

Never hold a stock through out Earning's Call!

Update 1/30 After Market Trade Triggered: Set my sell order @2.57 kinda hopping it would expire, came back home from the gym and noticed and got filled. Can't complain with one day trade and +0.27 profit. Just hoping for the second scenario tomorrow with a triple candle to buy back in :). No matter what it will be a good day for NURO. Good luck to those who is still in.

 I won't be day trading tomorrow morning due to my Real Estate exam. Please wish me luck and happy trading!


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