Each week at ChartSmarter we like to bring to a little insight into what we do on a daily basis. We have been at it for 5 years and we love doing it. Each night we detail 7 to 8 of our favorite ideas, both long and short, for the next days session. We do NOT have a chat room, nor are we active “tweeters”. We like our business growing by word of mouth. For those who would like to see a full copy of our Monday Game Plan, email me at firstname.lastname@example.org.
In our Wednesday 6/17 Game Plan we looked at MBLY, and although the trigger was never hit it does illustrate the power of the round number. Once it pushed through above on 6/11 jumping 5.5% on huge volume the next 3 sessions all intraday were below 50, but CLOSED above strongly.
Stocks that can be bought at the round numbers are MBLY. MBLY is an Israeli software name that is higher by 27% YTD and 40% since inception early last August. The complexion of the chart changed dramatically with the bullish engulfing week ending 3/6 which rose 6.6%. Since then there have been zero weeks of distribution and 5 weeks of accumulation (weeks higher in strong volume). The weeks ending 3/13, 3/20, 4/17 and last week gained 10, 4.2, 7.7 and 11.8%. MBLY recorded a bullish hammer on 6/5 and has powered above the round 50 figure last Thursday and refused to CLOSE below since (notice round 60 handle rebutted the stocks advance on 10/3 with a negative reversal). Enter on a pullback toward 50 handle at 50.25.