HSOA.PK

[Terliso]

David is using a linear chart, not a logrithmic chart.

That's made it clear..thanks kslifka

[Melf Elf]

Repost From The Technical Analysis Board/The Wolfe Wave Pattern Folder:

HOM looks to have the elements of a Wolfe Wave. 

1. After valdating T1 (Trendline 1) on August 18, HOM went on a rip to the upside, which also is our required lead-in to the Wolfe Wave.

2. During the late September to mid-October consolidation, a bullish Symmetrical Triangle (pattern in green on the chart) formed, putting 6.63 IN PLAY.

3. Interestingly, after Waves 1,2,3, and 4 of the Wolfe Wave formed, the November 14 "Gap To Crap" high was 6.60, within three cents of the target (Suggestion: when you get a gap opening like that, very near a target, and very near a trendline as well, take the money.  "Sell into strength.").

4. Also of interest is the fact that, if we shorted the "Gap To Crap" at the top of the Wolfe Wave on November 14, thinking that we might not get the "false breakout" that we often see in a Wave 5, we would have had a problem because we did get the false breakout five days later (and the 6.63 target ended up getting MADE).

We would have had a problem being short because we would have been staring at what appeared to be a Breakaway Gap to the upside on November 21, and HOM was printing new highs.  That's a scary postion to be in, if you're short.

I'm coming to feel that these WW patterns are much better when you do get the false breakouts, or the false breakdowns, because that's where you really get the imbalance that calven has discussed.

At Wave 5 on this chart, anyone buying the upside breakout got it wrong, and the shorts, who were staring at an upside Breakaway Gap at the open and a new high in the stock, and who covered their shorts, covered at exactly the wrong time! 

The proverbial "everyone" was buying, both longs and shorts alike, and "everyone" is caught off balance in a Wave 5 move like this one, if you see what I mean.  I think that element is the key to why we see such powerful moves from Wave 5 to Wave 6, as calven has shown us.  It seems not only to be an "imbalance," but players are caught "off balance."

While the false move at Wave 5 isn't required, I think it's better if we get it for that reason.

5. HOM hasn't gone to the target at Wave 6, (which remains to be seen), but if we had used the low (6.60) of the false breakout at Wave 5 as our "Sell Short" pivot, the gain on the short trade at the recent lows at T1 support would have been as much as 30%.  Not bad.

6. Currently, HOM is finding nice support at T1 and has put in a double-bottom at 4.55-4.56. The last three sessions have been bullish hammers, so it looks like it wants to rally.   If it can hold that T-1 support, then take out the middle of the "W" by printing 5.21, HOM has some "head room" to rally, at least to 5.50-5.54 resistance, or to the "W"-bottom target of 5.84.   Short-term view.

5.50 and 5.51 were the lows prior to the drop to T1.
5.54 is the 50DMA, which has flattened out and has rolled over slightly.

Happy holidays to everyone!

[David Randolph]

Yes Terlisa, I'm using a normal scale chart on HOM (as in most short to medium term charts), thanks for the clarification kslifka 

Great technical analysis Melf Elf, I specially agree with this part:

6. Currently, HOM is finding nice support at T1 and has put in a double-bottom at 4.55-4.56. The last three sessions have been bullish hammers, so it looks like it wants to rally.   If it can hold that T-1 support, then take out the middle of the "W" by printing 5.21, HOM has some "head room" to rally, at least to 5.50-5.54 resistance, or to the "W"-bottom target of 5.84.   Short-term view.

I agree with this, and according to TA, if the stock closes below TL1 it would be hard to defend a bullish case on it. Therefore, my trading plan continues to be:

- Hold for as long as the stock is set to close above TL1, which for today stands at $4.78.

[Melf Elf]

if the stock closes below TL1 it would be hard to defend a bullish case on it. Therefore, my trading plan continues to be:

- Hold for as long as the stock is set to close above TL1, which for today stands at $4.78.

David,

The fact that we've put in 3 Bullish Hammers on TL1 the past 3 trading sessions, and managed to close above TL1 all 3 sessions, would seem to indicate that the market recognizes its importance.

HOM is weak again this morning. Very short-term, it needs to print 4.91, above last Thursday and Friday's high of 4.90 on both days.  That also would get HOM back above TL1, which we are below right now.

HOM currently is BID 4.71...ASK 4.73

[shawFund]

What I see the chart for HOM:

  It is in downtrend since 11/21/2005 when it run its high of $6.99.

  Since then, it formed lower highs and lower lows and traded in the down channel.

 

[Terliso]

Looks like HOM is out in 3SOF ........I'll be a buyer @ 3.50 ...goodluck

[echo]

Fundamentally speaking this company is in great shape. With the floods in California that means even more bussiness for HOM. I expect big growth from this company 06'. I hope the techinicals start showing this soon. I hope they come out with some guidance in January. If they do there's no doubt it will be posisitve news and that will get the stock moving. jmo.

[brandyjoco]

Looks like HOM did a big bounce today. What do you think?

[Terliso]

HOM wants to have some action

[rickjust]

hi,
posted on tech analysis page,
what do you think of hom ? will it go on from here after a couple of days retrace?

here is an abc set up for hom,
point A, 4.25 reached on 12/28 ( last bottom)
poin B,  5.39 1/5/06 ( last high) \
retracement to point C, 4.95 1/10/06
inside day today. safe entry at 25% point
10 day about to cross 20 day,
bounced off the 38 fibonacci short term .(point C 4.95
take profits at 75%
what do you think? does hom have a chance this week of makin' it ? we'll see.
enjoy trading,
maxi

[rickjust]

hi,
anyone still in hom?
here is a chart . touched the 50 day ema yesterday , 10 day crossing twenty day. still looks good. let's see what happens today and friday.
maxi

[Amarens]

I'm still in HOM  . and I'll stay in as long a it closes above my TL (sorry no time to update chart) standing for today at $ 5,11, rising $ 0,03 a day.

Good trading!

Amarens

[rickjust]

hi,
hom looks like it wants to go higher , my target is at 5.80 but with the market retracing today and probably tomorrow let's see.
here are a couple of charts.

[Terliso]

HOM wants to have some action

& it did... maybe more

[la-onda]

looks good:
HOM: Shares Moving After Insider Buy
Friday , January 13, 2006 11:46 ET

Home Solution of America Inc (HOM) shares, up 3.6%, are moving after news of the CFO of the company, Rick O'Brien, acquired 5,000 shares at market price.