Drying running another potential trade. The previous NFTRH+ ‘dry run’ trade, CORN, is going well. I still hold it for now, but it is profitable folks. Remember, there will not be any updates telling people when to sell a profitable trade. The target is higher, but a profit is always welcome.
As for this dry run, the daily view of Silicon Image (SIMG) paints some perspective to the longer term weekly view we have been watching. SIMG is breaking down from a bear flag and could be a lower risk buy – macro markets willing* – on a flash drop through the trend line to around 5.80, which would also be the extension of the lower red dotted channel line.
If 5.80 (+/-) and noted RSI support are registered, we could have the makings of a low risk trade to the 50 day moving averages.
* Notably, the SOX index should be at or above its long term breakout area at around 560. If the SOX breaks down, this trade should probably be avoided.
Buy Target: 5.80 (+/-)
Sell Target: MA 50’s, currently in low-mid 6’s (note, this remains in an up trend and we do not control markets or the economy, so the target might be very conservative)
Stop Loss: Below MA 200’s, as suits individual risk tolerance
Note (4.30.14): SIMG quarterly results underwhelmed and instigated a downgrade from buy to hold. Hence, the 5.80 target may yet be attained but I am personally calling off this trade until things settle (and until a bearish looking Semiconductor index resolves).