On January 20, 2011 Synaptics Incorporated released its quarterly earnings and the stock took a dive from a high of $32.24 a day before, to a low of 27.85 a day after. Next few days it went up and traded around $31.32 and then took another dive and is currently trading at $28.37.
Take a look at the candlestick chart below, where I drew a support line below and three resistance line above its current price level. I also drew a trend line starting from its high to its current price. The plan is to buy 300 shares above resistance line 1 at $28.85 or above with a sell stop at $28.45, for a target of above $31.32. The important thing is to buy it not just above the resistance line 1, but outside the trend line shown.
If you have any question or advice please use the comment area below.
Update March 10, 2011: Setup a Buy stop to buy 300 shares of SYNA at $28.85, This stock is currently trading at $28.15.
Update March 16, 2011: Today I cancelled the previously setup Buy stop. Last few days this stock is going down mainly due to the current market conditions. Today it closed at $26.74 after touching support of $26.52 of November 1, 2010. If this stock bounces off of this support line 2, then I will be buying 300 shares of SYNA at $27.65 with a sell stop at $26.50. With this setup I will be taking a total risk of $345.00 for a possible target of $31.15. Below is an updated daily candlestick chart for SYNA.
Update April 20, 2011: I bot 300 shares of SYNA at $26.62 and setup a sell stop to sell all 300 shares at $26.42
Update April 21, 2011: Below is an updated chart as of April 21, 2011
Update May 3, 2011: Sold 300 shares of SYNA at $28.20 made $1.58 per share a total of $474.00.
