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

[REALDEALS21]

GREAT buy here under $10 ! 

[hawk]

Congress has spoken..
lots of companys took a hit because of this.
but i still think there is potential here.
it  will touch bottom not to far from where it is today and i see a great potential here,
this one might recover to last week prices in a month or two.

[REALDEALS21]

This has always straight been a CHINA play ! It bounced off the 50 MA, hopefully it does not close below that anytime !

[AussieTrader]

When the dust settles on this insane antin internet gambling legislation GIGM should be OK. Today presented a great short term buy and sell opportunity. Sitting on long term support nicely, bbut be prepared for further negative rides when George W signs off the law.
Shame a great chart has been corrupted. I read an interesting piece stating that surely if companies listed in the US are engaged in illegal activities e.g. internet gambling, then surely they must be delisted from the US exchanges? Interesting point of view as a consequence of the legislation

[jorgegr]

So you're the bastard who blocked my 10.39.   

JK.

Did'nt know I had a twin brother

[tokyopua]

Update:

All the online gaming related stocks should be down today; although GIGM is not a direct player on the US we'll quit this re-entry strategy for the moment and wait on the sidelines.

Trading Plan:
No plan / cancel any entry order in place and wait on the sidelines.

I have to applaud 3SOF and you Ramsburg again for tracking GIGM after the fact and making the call to cancel the re-entry.  I had a limit order in that would have gotten triggered and likely lost me some money as I paniced watching the stock continue to drop to 9.  But seeing the daily update and the reason for the cancelation, I killed that order and didnt lose money 

Good service and diligence!

[la-onda]

up today

GigaMedia: Pure Play Non-USA Business
Tuesday October 3, 6:54 am ET
All Revenues From Non-U.S. Markets

TAIPEI, Taiwan, Oct. 3 /Xinhua-PRNewswire-FirstCall/ -- In light of the passage of new restrictions on online gaming in the U.S., GigaMedia Limited (Nasdaq: GIGM - News) would like to clarify that it has been and remains a pure play international business -- with no U.S. source revenue.

GigaMedia therefore anticipates no adverse financial impact from the new legislation.

"As a major provider of online entertainment software for the enormous non-English language markets of the world, we are very enthusiastic about our growth and market prospects," said Chief Executive Officer Arthur Wang.

"GigaMedia has been a first mover in providing truly localized solutions for Europe and Asia," explained CEO Wang. "Our focus and extensive experience in the international markets is both the foundation and future catalyst of our strong growth."

[la-onda]

GIGM statement:
GigaMedia: Pure Play Non-USA Business
Tuesday October 3, 6:54 am ET
All Revenues From Non-U.S. Markets

TAIPEI, Taiwan, Oct. 3 /Xinhua-PRNewswire-FirstCall/ -- In light of the passage of new restrictions on online gaming in the U.S., GigaMedia Limited (Nasdaq: GIGM - News) would like to clarify that it has been and remains a pure play international business -- with no U.S. source revenue.

GigaMedia therefore anticipates no adverse financial impact from the new legislation.

"As a major provider of online entertainment software for the enormous non-English language markets of the world, we are very enthusiastic about our growth and market prospects," said Chief Executive Officer Arthur Wang.

"GigaMedia has been a first mover in providing truly localized solutions for Europe and Asia," explained CEO Wang. "Our focus and extensive experience in the international markets is both the foundation and future catalyst of our strong growth."

[Dracull]

Ramsburg,


Is this the time to reenter?

[Amarens]

As it should be!   

Amarens

[Melf Elf]

October 13 - RSIs - Across The Board Sell Signal in GIGM at 11.00 even.

As a result of the severe move down to 9.05 on October 2, all measures of relative strength in the Fibonacci pairings that I use (13...21..34...55...89...144...233) turned bearish.

On Thursday, October 12, all of them still were bearishly positioned, and most of them came into Bearish Synchronicity, meaning that the readings were reasonably close, and that the lower numbers were bearishly positioned below the next higher number in the Fibonacci sequence.

I use the low of the day when the RSIs come into Bearish Synchronicity as the "sell pivot."  The low on October 12 was 11.01, so that means that a print of 11.00 on Friday, October 13 was the number where the sell signal would be issued.

Friday's low was 10.89, so the sell signal was given.  The close was 11.01.

I never view any indictor as TELLING US to sell, as in, "RSI 'said' sell."  I view signals as "You've been warned!  You better take a close look at the price chart, then decide whether or not you want to take the signal."  I say that because indicators don't have a clue what the price chart looks like, but we do.

We'll look at it in the next post.

[Melf Elf]

I never view any indictor as TELLING US to sell, as in, "RSI 'said' sell."  I view signals as "You've been warned!  You better take a close look at the price chart, then decide whether or not you want to take the signal." 

What does the chart look like?

1. GIGM printed a low of 9.05 on October 5, bounced off the top of the Kumo (Cloud), which was at 9.0525, and looks to have gone into a Bearish Rising Wedge, gap-filling rally.

2. The gap down from 11.20 on September 29 was filled at Thursday's high of 11.25.

3. Thursday's high was within three cents of being Hit #3 to the top of the Bearish Rising Wedge.

4. Thursday's candlestick looks to be a Spinning Top: a little candle, with a small real body (the little black part, which represents a higher open and a lower close).

5. Although Friday's candle violated the bottom of the Bearish Rising Wedge, it managed a close back inside the pattern.  The candle is a Bearish Doji Star Hangman if taken out to the downside, but the upward slope of the bottom of the pattern is very severe.

This pattern could morph a little on us.  Maybe go down and take out Friday's low, then make another bid for the top of the pattern? 

What I often find when these RSI signals are given, is just that.  Some pattern morphing, some ratcheting its way higher toward the top of the pattern, then it sells off.

I'll show you two examples of that in the next post.

[Melf Elf]

These signals can take awhile to play out.

Long-time followers of this thread will remember the H&S Top in the 13/21 RSIs at May earnings (see chart above).  That one didn't take any time at all to play out.  GIGM tanked on the first attempt to get back through the Bearish Rising Wedge, then tanked again in June, where we can see on this chart that the RSIs rallied to broken support (blue trendline), went into Bearish Synchronicity, then tanked.

In June, the RSIs came into Bearish Synchronity right away, off the 6.18 low (red #1).  That one took a little longer.  The RSIs rallied again, still in Bearish Synchronicity, to red #2.  GIGM failed at the top of the Kumo (Cloud) right there.

The red #1, 2, and 3 in July is a good example of how these signals can "ratchet their way higher," then the stock sells off.  That one was the big volume reversal, at August earnings.

Conclusion:

1. No signal ALWAYS works. 

2. The overall chart in GIGM still is bullish, but it also was bullish when we got the 43% selloff from May earnings.  I don't expect that kind of selloff here, but you never know.

3. I'd say there's a decent chance of at least one more bid for the top of the Bearish Rising Wedge, but we've also been "warned," so we'll take that under advisement.

Data Points for the top of the Bearish Rising Wedge:

October 16 - 11.43

October 17 - 11.525

October 18 - 11.617 (the Rising Channel (red) broke down at 11.58 on September 28)

[Melf Elf]

MACD is out of position, and rallying back toward its signal line.   If GIGM ratchets its way higher here, we possibly could get a back kiss, or close to it, then a failure at the signal line.

[Melf Elf]

GIGM yesterday got caught between the proverbial rock and a hard place.

11.17 was the bottom of the broken Bearish Rising Wedge  (ROCK)

11.10 was the high on the day

11.08  was where the down trendline off the 12.55 high came in  (HARD PLACE)

October 13 - RSIs - Across The Board Sell Signal in GIGM at 11.00 even.

Given the technical weakness, GIGM took the path of least resistance, which was down.

This still could ratchet its way higher against the unfavorable technicals, as I explained yesterday morning, but given that sell signal at 11.00, it simply could go lower.

When GIGM got trashed on October 2, it broke below and closed below the top of the Symmetrical Triangle (nearly horizontal purple trendline, currently down around 10.00).  What would look nice, technically, is for GIGM to go down there and HOLD, indicating, "I was just kidding...that really is support," then go up and knock out that blue down trendline.

That would give us a Symmetrical Triangle Bullish Continuation breakout, which we can discuss if that scenario should eventuate.

For now, the caution flag is out with the RSI Across The Board Sell at 11.00.