GIGM - Sector: Technology---Industry: Multimedia & Graphics Software

[Maestro]

In a situation like this, where a stock keeps finding resistance, it's not a bad idea to bank some like Aussie did, to defend against a selloff and possible break of the pattern. Especially this close (3.4%) to the 12.10 target.

Or would a trailing stop sometimes be useful for a stock in the 3SOF portfolio?

[Melf Elf]

Or would a trailing stop sometimes be useful for a stock in the 3SOF portfolio?

Maestro,

Sure, that's fine, and Frederick is doing a nice job of raising the stop to preserve gains.   Obviously, we can't know how these trades are going to work out, and when we find out, we always can say, "Coulda...shoulda...woulda."

Personally, I think any strategy that preserves a good part of a gain like this one in GIGM is good.  Right now, it's about a 28% gain from Frederick's entry, so certainly nothing wrong with taking it, or taking part of it along the way.

Nothing wrong with using the 10.70 stop, and giving it a chance to go higher, either. 

It looks like it's trying to get to the 12.10 target, currently BID 11.80...ASK 11.81

Good luck, everybody!

[Melf Elf]

Basis the hourly chart below, GIGM broke out of a Symmetrical Triangle this morning at about 10.87 (it's difficult to calculate on these on intraday charts).  That puts 11.48 IN PLAY, and also about 12.10 IN PLAY.

 
We sprinted to 12.08.   It couldn't do a lousy two cents more? 

[AussieTrader]

So, I don't want to miss any possible strong moves so I will have a re-entry strategy on 2 levels:
1) Enter on the breakout above $11.50 (which has proven tough to crack)
2) Enter on the pullback to support, this will start at the 9ema, but will watch how that goes.

Re-entry strategy #1 was fired 

[Se7en]

GIGM doing fine, up another 5,5%!

[Melf Elf]

We sprinted to 12.08.   It couldn't do a lousy two cents more? 

12.08 two cents from the 12.10 target IN PLAY, turns out to be a short-term top.

GIGM now has MADE three upside pattern targets:

1. 10.83

2. 11.48

3. 12.10 (12.08...close enough).

It's difficult to know where to take profits, which is why I said yesterday that 11.70 resistance was fine, and why I say that it isn't a bad idea to "take some profits when targets get MADE." 

GIGM just broke this up trendline off the 10.44 low, to which there were 5 hits, so its now moved down a little more since this chart.

The important thing is to "control the trade," rather than allow it to control us.  Try to decide where we're going to take profits ahead of time, then we're being objective, and not making emotional trading decisions.

GIGM currently is BID 11.24...ASK 11.25

Good luck, everyone! 

EDIT: Sorry, I forgot to add the trendline.  It's been corrected.

[Melf Elf]

GIGM just broke this up trendline off the 10.44 low, to which there were 5 hits, so its now moved down a little more since this chart.

Since the break below that trendline, GIGM went down and MADE the target from this morning's broken flag (11.16*),  has been re-testing the broken trendline, and is trying to break back above it.

We don't want to see it fail there, form a Right Shoulder, then a break the 11.04 - 11.11 neckline.

*Math for the broken flag:

High: 12.08

Low: 11.63

12.08- 11.63 = 0.45 points.

The break occurred at 11.61.

11.61 - 0.45 points = Target: 11.16 IN PLAY (the low was 11.10)

GIGM currently is BID 11.43...ASK 11.44

[Melf Elf]

Hmm-mm...I dunno, guys.

If this is a H&S Top, the Right Shoulder went a little higher than the Left Shoulder, which it shouldn't do, but then the neckline slopes up a little, so...

Here are some reasons to be cautious, short-term:

1. 3 upside targets MADE.  That certainly doesn't mean that GIGM can't go higher, but often the stock corrects after that kind of move.

2. The Bearish downside target of 11.16 MADE.  That's a behavior change for GIGM since this rally began, and is at least suggestive of a short-term change in trend.  A "caution" sign, if you will. 

Stocks that are in full-blown bullish mode generally don't make bearish targets.

3. The volume looks about right for a H&S Top.  Typically, the volume is the highest in the Left Shoulder and the Head, then falls off, sometimes dramatically, in the formation of the Right Shoulder, suggesting that the rally is running out of steam. 

The last volume spike was on the selloff to 11.10 today.  The volume on this afternoon's rally fell off quite a bit.

Good luck, everyone!   Frederick has done a fine job here, and this is a nice gain.  Whatever decision that you make is fine, as long as it's a gain. 

[Ramsburg]

Once again, thanks a lot for your serious inputs here Aussie and Melf,  (applaud you both)

Update:
It's really difficult to choose the correct trading plan that best fits GIGM behaviour right now. Volatility remains very high, each candle is a huge 6% to 10% move with high volume, and it's becoming complex to filter the real move from the price noise...
We've been moving our stop level higher, and I believe that the best we can do right now. So trying to keep this chart analysis as simple as it gets, I'll be focusing in the last technical pattern we spotted: the ascending triangle, this give us a support near $11.10 (the top of the earlier range without spikes), and yesterday the low of the day was exactly there so we can see it as a retest.
My common sense tells me that GIGM is willing to move further higher, at least on a mid term approach, but in case of a breakdown of the $11.10 support we may see GIGM as low as its ascending support line at $9.75. So we are moving our stop once again, and this time we'll put it just a little below yesterday's low, so the trading plan is:

Trading Plan:
Hold GIGM with a stop @ $11.07

Regards !)

[Melf Elf]

Basis the Hourly Chart posted above, if this is a H&S Top, the neckline was at 11.07 or 11.08 when the high of 12.08 was put in, so if it breaks to the downside, we subtract $1.00 (we'll use the more conservative 11.08) from the point of the break to get the downside target IN PLAY.

Let's say that the pattern breaks at 11.13.  That would put a downside target of 10.13 IN PLAY.

If we connect the highs on the chart (purple trendline) prior to the recent breakout, that trendline comes in today, September 20, at 10.136.

In addition to the "possible" H&S Top on the hourly chart, we've got what looks like a Bear Flag (pattern in red) on the daily chart.  We'll have to see if we get data point #4 at the bottom of the flag.  Bearish Rising Wedge?

Bigger picture, we will keep in mind that GIGM hasn't got much resistance here, going back to 2000, so this simply could  ratchet its way higher, but we could be in for a re-test of that purple trendline if these patterns break to the downside.

Trading Plan:
Hold GIGM with a stop @ $11.07

Nice job managing the trade, Frederick.  Applause.

[Se7en]

For the 3rd time in a couple of weeks in/out GIGM with a 4,5% gain now! 
New 52 week high today, if it comes back down to the 4 or 9 ma, I'll try to get back in!

[AussieTrader]

Hey Melf, Rams and fellow GIGM'ers.

GIGM weekly chart shows a classic cup without handle pattern which historically is a very strong indicative pattern for huge winners. If you have read William O'Neil then you will understand what I mean. Sure daily volatility has increased but that I think is to be expected, the weekly chart looks smooth as silk I don't want to lose my position in GIGM at the moment.

[AussieTrader]

Hey Se7en,

Good Trading.

[Ramsburg]

Interesting target Aussie... I really like it And yes, the Cup without handle pattern is a common way to try to measure the upside potential on charts like this one... The subtract/sum math of the previous range will give a technical potential of $14.60 IN PLAY. This is not a sure thing, but at least is something to motivate us on this trade, isn't it ?

Update:
What a really nice session for GIGM, a new high and a new high close over consistent volume. This second consolidation is looking more aggressive to the upside, keeping momentum hot.
Our only job right now is to manage our stop level in order to assure we keep riding this move without compromising our position, the potential is still very high but so is intraday volatility, so we'll keep the stop at the same place today:

Trading Plan:
Hold GIGM with a stop @ $11.07

Regards !)

[Melf Elf]

Frederick and Aussie,

Yes, very nice day for GIGM. 

The intraday H&S Top possibitlity no longer is a problem since the Head was taken out with the new high for the move.  The Bear Flag/Channel, however, still could present a problem, short-term.  The top of it comes in today, September 21, at 12.38.

Longer-term, Aussie's pattern is bullish, especially since it occurs with no overhead resistance, going back to 2000.  I get a target of 14.88 IN PLAY, as long as GIGM remains above the purple trendline, which could get re-tested if the current channel breaks to the downside.

That kind of pullback wouldn't be at all unreasonable.  GIGM has rallied almost 100% in a little over 3 months, and it would be only a .382% (or less) retracement/digestion of that gain.