UPCS

[David Randolph]

From a technical point of view only there's not much more you can ask from a chart:



Here's why:

1) The medium/long term trend is bullish, so I may conclude fundamentals are sound. This is different from a stock building a base at a low point and getting a big white candle - that's a more explosive, but more riskier play. When I say fundamentals are sound I say it because market participants are perceiving them that way and I don't have enough knowledge to go against market participants (and generally that's not a good way to trade, against the trend).

2) Yesterday we had a breakout from what was a 6 month consolidation phase.

3) Volume has been increasing day by day, so the advance is pretty solid.

I don't want to know what the company does, so I won't even look at the profile. My motive to buy is solely the chart so I'll just have to keep track of the chart for it to tell me when to sell.

Buying UPCS at the open.

Everyday I will analyze UPCS after the market close until I sell the stock. I always tell I'm going to sell before I actually take action. You just have to follow the answers to this post.

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[stocky]

Have u bought it or waiting for some level/time?

[stocky]

ok, got it in 3SF portfolio.

[David Randolph]

UPCS continues with it's perfect rise. The stock opened gap up only to correct intraday to the gap closing level (the high of the previous day was $7.89) and then claw back in the end of the session, to finish 3% higher.

I'm excited about the volume too, growing everyday. I still don't know what this company is or does, and I don't want to know. Technical analysis is a respectable strategy and I will exclusively follow it with this stock.

[David Randolph]

Well UPCS made a "perfectly normal pullback" to the prior resistance line, now support. Just hoping this isn't another false break out, I've had enough of that ... wouldn't like to see the stock close below $7.65.

[eliteG]

You gotta love the candle recovery today!  Is that a piercing line?

[sailjero]

yes ,and don t forget 25% of the float is short as of june   >:Dih this stock continue its climb on monday expect a push from shorts covering ...................

[David Randolph]

Yes eliteG, I really enjoyed the candle on UPCS. But I believe it is an «hammer», not a «piercing line».

UPCS closed at $8 in the after hours. We've had this news: UbiquiTel Inc. to Present at 15th Annual Wachovia Securities Nantucket Equity Conference

When the stock broke the resistance line at $7.75 it got a bit overbought. Now it has retraced to the 38.2% Fibonacci retracement level and it seems ready to resume the uptrend on the coming week.

[David Randolph]

There's no new technical or fundamental information from UPCS. Consolidating above resistance, now support at $7.75.

[David Randolph]

UPCS did what it was supposed to do, given the technicals, which is to rise ! The breakout had its pullback, the support hold, so there's no motive to wait any longer. UPCS should runaway from the $8 level in the next few days.

[David Randolph]

Cool white candle today on UPCS. The breakout has a technical target of $9.38, which is still 13% above today's close. We have a strong support, prior resistance at the $7.75 level.

So the trading plan is quite simple: hold to sell at the technical target of $9.38 as long as the stock keeps closing above support.

[Thunderbunny]

The breakout has a technical target of $9.38, which is still 13% above today's close.

David,

Would you please explain how you arrived at a target of $9.38 for us TA newbies?
Thanks!

[David Randolph]

UPCS had a rectangular pattern. You see the high of the pattern was $7.75, the low was $6.12.

The breakout technical target is given by $7.75 - $6.12 = $1.63.
$7.75+$1.63 = $9.38

(this is just a technical indication, the stock may rise beyond the technical target or never reach it - but, since I'm trading the breakout, it's interesting to be aware of the technical target of the breakout)

Visually:

[David Randolph]

The market went down heavy, UPCS went down a little. Nothing to be worried about, the uptrend is in place.

[David Randolph]

UPCS is slowly climbing the ladder. The technical price target is $9.38.