trend | adx | psar | pps | macd | macd trend | sto | sto trend | |
---|---|---|---|---|---|---|---|---|
PALM $5.06 |
For a chart-driven trader, PALM is one of those interesting cases where rumor and news are all.
If a firm buyout offer is placed on the table -- Lenovo (LNVGY) is said to be the last remaining Asian suitor -- then the offering price will set the stock price, regardless of support and resistance.
Today's news that Lenovo's competitor for a PALM acquisition had dropped out caused a modest rise in PALM's stock. What LNVGY -- Lenovo's low-volume ADR on the NASDAQ -- gapped up for a second straight day and traded 8.5% above Wednesday's close.
Until a buyer emerges, I would argue that PALM's normal technical indicators remain in play. Support and resistance levels mark areas where shares were left behind in a price swing. Those shares still on the table limit prices moves until that supply is drained away by buyers.
You are here:
- Reversal
- $7.21, +42.5%
- $6.47, +27.9%
- $6.29, +24.3%
- $5.75, +13.6%
- $5.36, +5.9%
- Now $5.06
- Reversal
- $4.66, -7.9%
- $3.80, -24.9%
- $3.65, -27.9%
I own shares of PALM, the remnant of a covered call gone bad. At this point my basis is $8.69, so my hope of a profit lies in a 70% buyout premium -- hardly likely.
It should be noted that PALM has been at these low levels before -- in January 2009, October 2008, and back in 2002, 2003 and 2004.
It seems to be a strangely resilient company. So, while avoiding "darkest before the dawn" cliches, I'm not writing PALM off yet.
Technical analyst Martin Pring reveals the secrets of the craft. No trader should be without this book.
PALM is followed in the daily Watchlist, which is posted beginning around 2:45 p.m. Eastern. Look for it at www.timbovee.com.
Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic
About the glance: The colors indicate the state of each signal.
- trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
- adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
- psar, pps, macd: green for bull mode, red for bear
- sto: green for overbought, red for oversold, yellow for the neutral zone.
New to private trading? Here's a look at How to Become a Private Trader.
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