By Andrew Nyquist
A nice coiled base and a big earnings report propelled Fusion-io (FIO) significantly higher in August, and on through early October. In fact, the stock left such a huge gap after their last earnings report that many active investors were left wondering if it would offer such prices again. Well, gaps tend to be magnetic and patience is a virtue.
FIO has pulled back from a high of over 32 a couple weeks ago to its current price below 28. In the chart below, the stock is nearing important upper gap support and today will record bar 8 of a daily DeMark buy setup 9. Now this doesn’t necessarily offer a “lasting” bottom; I use these daily setups for trading ideas. And in this case, I will watch FIO for lower prices today and Monday, looking for a bargain and possible bounce higher next week.
Be aware that FIO reports earnings after the close on Wednesday, October 24th, so plan accordingly. I do not tend to trade earnings reports (or other binary events), so IF I initiate a trade, I will likely sell or lighten up prior to. I do not have a current position in FIO.
Trade safe, trade disciplined.
More charts found here.
Fusion-io (FIO) stock chart with technical analysis as of October 18, 2012. FIO DeMark daily buy setup count with open gaps and support and resistance levels.
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No position in any of the securities mentioned at the time of publication.
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of his employer or any other person or entity.
