COMS

[Ramsburg]

Profile: 3Com Corporation provides secure and converged networking solutions to various organizations worldwide. Its products and solutions enable customers to manage voice, video, and data in a secure network environment. The company's products and services include security systems, such as intrusion prevention systems and firewalls; and Internet protocol (IP) telephony platforms, including dial tone, IP messaging, IP presence, IP conferencing, IP mobility, and IP customer contact center services. 3Com also offers networking products and solutions that primarily consist of local area network (LAN) switches, routers, firewalls, gateways, mobility and wireless LAN, network and security management; and related support services (...)
Website: http://www.3com.com
Market Cap: 1.99B
Financial Trends:


Trading Idea:
Note: This is a 100% Technical Pick.

COMS had a breakout of its descending resistance line last month, volume was big, and the stock performed a throwback retesting the breakout zone. During the past month, COMS has been consolidating inside an Ascending Triangle pattern, volume has been decreasing, and this setup looks solid enough for me to put some money here.

Short term chart:


Mid Term chart:


Last Friday COMS retested the short term ascending support (base of the triangle), enabling us to have a nice risk / reward ratio to setup a technical position at these levels:
Support near $4.90 (2% downside), Resistance at $5.20 (4% upside), and a potential breakout could put a target in play near $5.80/$5.90.

This is not a powerful trading idea, but I'd like to test it with 6.6% of our portfolio, the risk will be low, as I'm planning to use $4.80 as a stop level... let's do it.

Trading Plan:
Buy COMS today at or near the open. (Use $4.80 as a stop for this position)

Best regards,

[rickjust]

hi,
jumped in at 5 . looks like first resistance 525. like to see it break that with volume.
maxi

[rickjust]

hi,
looks like it found big resistance a 510!
i am still in . deciding maybe to stay in for the morning see what that brings.
bounced off the 200day but macd and stocastic look bearish .lets see
maxi

[Ramsburg]

Hi Rick,

We sold COMS @ $4.80 following our initial plan 

[rickjust]

hi,
yeah, i saw that . i put my stop at 470 3cents below the 50 ma.
wiling to hold for another moment
maxi

[BigSully1]

"hi,
yeah, i saw that . i put my stop at 470 3cents below the 50 ma.
wiling to hold for another moment
maxi"

I'm doing the same thing. Stop at 4.70. Because I only bought 1/2 position at 5.00 and another half today at 4.78, I can certainly give it a little more room. GL.

[rickjust]

still in.  posting the chart.
dogi today.
maxi

[realvane]

Maybe it's time to bounce up,but i'm not optimism.
Because In the consolidate period ,you can see the up day's volume is less and less,but the down day's volume is increasing slowly.I don't think it's a good sign.

[rickjust]

keeping my stop at 470
just missed it on friday printing 471.
doesn't look promising . i expect it to hit my stop tomorrow,

[rickjust]

stopped out 470