TALK is on fire

Talk American Holdings (TALK) principal activity is to provide local and long distance phone services to residential and small business customers in the United States.

The long term chart looks like this:

This is a chart with all the stock market history from TALK. We can see the all time high was $90 in February 1998. Since then the stock went down to a low of $0.9 in 2001 and is now starting to claw back up.

On the medium term, we have this:

TALK is on an uptrend now, making higher highs and higher lows. We expect this behavior to continue, so the stock will eventually make an high above $16. That limit up trendline is our primary target for the expected rise. That line today stands at $20.5.

For the short term, yesterday the stock had a white marubozu with volume above average, breaking trough a resistance level at $7.69:

Trading Plan:

1) Buy the stock at open
2) Sell with profit at the upper channel trendline
3) Admit a mistake and sell with a loss if the stock closes two days in a row below $6.91

David Randolph
www.3stocksonfire.org