subject: The No. 1 Way To Profit When Tech Leads Higher Keithley Instruments (kei) [print this page] This rare stock gained over +3000% at the inauguration of the last bull market and it is ready to skyrocket yet again in the second half of 2010...
Spurred by a worldwide recovery demand for products used to source, measure, join, control or converse direct current (DC) or pulsed electrical signals is skyrocketing.
More orders from Asia, the Americas, and Europe will space rocket this corporation back up the charts.
Keithley Instruments (KEI) looks like a scorching buy right now for Monday, June 21, 2010 as a result of both a fundamental and technical outlook.
At a fundamental level, the company trades at a forward PE of 11.5. If you research the PE with the Tech sector as a whole, most corporations are trading at a PE of 17. But it gets even better!
Sales increased by 25% the last quarter year over year.
I also enjoy the fact that Keithley Instruments (KEI) just upped their dividend. Therefore at this time we have a the outcome of a gigantic boost in sales and the company raising their dividend as a end result.
On the weekly stock chart we have a huge Cup and Handle pattern being formed. A cup has by now concluded its structure and the sliding move of a handle appears to be ended for the reason that on the daily chart we witness a Bullish Flag break.
One thing that will really jump out at you with reference to the weekly chart is the growing volume. Omg! This amazing growing volume implies that professional traders have recently noticed this stock.
The daily chart does not include an alligator cross so far of the moving average lines however the hourly chart does. My wager is that the daily chart will eventually show this cross over the next several days and weeks. Still the daily chart does demonstrate something extremely bullish, a Bullish Flag break. This Bullish Flag breakout is one of the most excellent money making chart formations you will find for the reason that you are hardly ever chasing the movement of a stock's price but instead buying at a discount. With this instance, I gamble the Bullish Flag breakout means we are at the floor of the handle on the larger Cup and Handle pattern on the weekly chart.
The hourly chart has the alligator opening his chops on the moving average lines. This is a incredibly bullish formation I truly like to witness. Nevertheless you must keep your eye on the falling volume. The volume has fell into the upward move. I wager some of this drop in volume can be contributed to the options expiration Friday effect where volume either drops unusually low, or the trading session is very volatile. These seem to be the two events that occur most often on an expiration Friday. Nevertheless, if you plan on buying Monday at market open as I do, you will need to use caution on your entry.
My strategy for Monday at market open is to watch for big volume and buying. Provided I witness it, I am instantly in and I will let the chips fall wherever they may. If the Monday at market open volume is light and I see dumping, I will pull up a tick by tick chart and time my entry after the sell off has finished.
