3SOF

hi,
in at 190. think this will break two ,
max

Today we had this news on EGHT: Systemax Partners With 8x8, Inc. to Bring VoIP to the Masses. It's a small step, but one in the right direction.

For tomorrow the TL1 will be standing at $1.42, I'll continue holding EGHT unless the stock is set to close below $1.42.

EGHT seems to be developing a short term resistance area around the $1.95 level. I think it is accumulating for a jump above the $2 phsycological barrier. It is possible that it makes a move down to TL2 (tomorrow at $1.74) to throw some weak hands out of the ship and get the necessary traction for the rally.

I want my hands to be strong. This means I'll continue using a larger stop so that I'm able to support possible technical short term corrections, because the big money is made on the big moves.

I'll continue holding EGHT, unless it is set to close below TL1, tomorrow at $1.43.

hi,
touched the 20 and bounced,
maxi

Quote from: rickjust on November 22, 2006, 09:57:58 AM
hi,
touched the 20 and bounced,
maxi

That was strange price action in EGHT this morning, looks like someone dumped some shares in market order at the open and the stock recovered fairly quickly.

Looks like we had a Golden Cross on Monday, EGHT still lookin' good!

Yes Tokyopua, the 50 day simple moving average is now above the 200 day SMA. I was expecting a day like this:

QuoteIt is possible that it makes a move down to TL2 (tomorrow at $1.74) to throw some weak hands out of the ship and get the necessary traction for the rally.

I would have liked to have some more volume on this shake out day, but 1.27 million shares was still above average. I guess EGHT is now ready to resume its uptrend.

My hands are strong, I will let go of EGHT only if it is set to close below the ascending TL1, which tomorrow will be at $1.44. It has to be this way if I want to be in on a trip above $2. Look what happened today, everybody with a stop loss order near the market was stopped out. Perhaps they will buy EGHT again, but this time I hope they pay $2 plus 

I read this thread from the start and I continue to feel confortable holding EGHT. Analysts are moving up their estimates:



Technically today was insignificant, with volume about 1/5 of the average. The stock is above TL2 and may push above $2 anytime soon.

My plan is to continue holding EGHT for as long as it is set to close above TL1, which on Monday will stand at $1.46.

EGHT broke down below TL2, showing weakness on the short term chart. Yet, my plan always was to keep on holding for as long as the stock is set to close above TL1, which tomorrow will be at $1.47.

EGHT's revenues are up for 10 quarters in a row and I don't see this trend towards VOIP stopping anytime soon. The general market took almost everything down today, and since EGHT was up over 100% since its August lows, it fell 6%.

I'll continue holding EGHT, unless it is set to close below TL1 on the chart, tomorrow at $1.47.

I'm with you on this one. Just bought in at 1.55 after I got stomped out of SIGA.   

Would very much like to see EGHT close above 1.63 today so that we can have a hammer to reverse the current downtrend 

Quote from: thai626 on November 28, 2006, 11:23:32 AM
I'm with you on this one. Just bought in at 1.55 after I got stomped out of SIGA.

I think you did well thai26, the bull case is stronger in EGHT than in SIGA.

Quote from: tokyopua on November 28, 2006, 03:19:13 PM
Would very much like to see EGHT close above 1.63 today so that we can have a hammer to reverse the current downtrend

Closed at $1.61. I don't know if the decline phase is over yet. I read this entire thread and checked the company's financials and products again, and everything seems in order, pure and clean revenue growth and nothing wrong with the balance sheet.

I expect this company to be profitable in 6 months, given the current revenue and EPS trends.

But, technically, it has been very weak lately. I'm already losing 8.52% on this trade. But you know, EGHT is a stock and company with so much potential that one has to bear a higher risk.

I'm going to change my trading plan slightly, I've noticed a gap opened between $1.43 and $1.45. $1.44 wasn't traded on the way up. Technically it is possible the stock goes that low, to close the gap, and possibly touch the 50 day SMA.

If EGHT goes that low, it will probably bounce quickly from that level. My stop loss changes from a possible close below TL1, to a sell if the stock is set to close below $1.44. This represents an 18 - 20% risk.

I'm willing to accept this risk level because the 3 Stocks on Fire Portfolio is well diversified and I'm not planning to sell it with a 20% profit, but with a 400% profit or more. Because if the company really gets traction with this new business model (it's already happening, just not profitable yet) it will be at least a $500 M business, that is, 5 times more than it is now.

Even if I get stopped out I will always keep it under close eye to get back in again, unless the fundamentals change dramatically (I don't see this happening - it makes sense to have a phone on your computer, even more for businesses).

But, what if the stock ignores that gap, or those trendlines down below, and rises immediately? Even better, but I'm prepared for further downside.

EGHT had a strong rally yesterday, but technically we're not out of the woods yet. What happened yesterday was a "throwback" to the previous ascending TL2 on the chart below. As always, support becomes resistance and the stock had a bit of a sell off in mid session.

But it was nice to see it rebound so strongly, and volume was good too, at 1.8 million shares.

We still have that gap opened at $1.44, and the 50 day simple moving average coming up at $1.41 now. Technically we may go down there to test these medium term support areas and only then shot up above $2. But there's one thing that can prevent this short term scenario: value !

If the stock is very attractive from a fundamental standpoint at current prices and some institutional investors happen to know it, it just won't go down that low, forget about gaps and supports. Technical analysis needs to adapt, it isn't static.

I've been thinking that, since I make these updates everyday, I don't like the feeling of having a rigid stop. I'm confident that I will respect the market's will in all occasions, so why have a stop that only makes me weaker?

You know I never change the trading plan on an intraday basis and I always follow what I write, but I can adapt the trading plan when I make these updates. And I'm changing my plan on EGHT, I will hold the stock no matter what happens today.

eght has been downgraded. probably going lower. buying opportunity? soxguy

Hey soxguy, thanks for the info. Where did you find that downgrade, I can't find it.

Thanks in advance!

uc

i found it on the yahoo message board. there was a link to briefing.com. david feels pretty strongly about this one. might buy some more. we shall see. soxguy