Thursday, July 14, 2011

7/14/11: $2.30

-0.13 (-5.35%)


Another disappointing session for CNIT today, though most likely in part attributed to continuing weakness and profit taking in the general markets. Up a little early in the day, the stock tumbled past the open price at first, and then after struggling a little at around $2.35 failed to hold that level and ultimately got pinned at $2.30.

On the sort of bright side, the stock did seem to find some support at the 50-day moving average, which now hovers around $2.26.


Remember that the break through the 50 dma was a critical upward point for CNIT, which had long found resistance there (see the failed break attempts in May which got blocked by the blue 50 dma line above). This is therefore a critical line to watch, and will likely determine if CNIT will experience a bounce or fall back to the $1.90-$2.10 range. I'm guessing we'll stay around the 50 dma for at least a session or two, and if we don't the move is likely to be big, whether it's up (knocking on wood here) or down.

In terms of daily activity, I promised myself yesterday based on my analysis that I would sell some of my core position in the mid to high $2.40s, but failed to do so in the morning. I also promised myself I wouldn't buy more at lower levels, but went against the plan, out on a limb, and decided to play the support area. Therefore I bought some more shares at $2.30 and $2.35. Again, this could be a very good or a very bad idea.

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