JDSU and 3COM

[Mr.F]

Hello T2W,

This is my first message in this great website and i would like to start by saying that this is one off the best places to learn about the market i´ve ever seen. Congratulations!!!


Now to start my contribute I would to share with you 2 chart, for 3COM and JDSU, stocks i feel to be in a very interesting technical position.

Hope you like it!

JDSU

3COM

 

[timsk]

Hi Mr.F,
Welcome to T2W!
Your charts are very colourful, but the "very interesting technical position" that you refer to isn't clear to me, I'm afraid! Even if it was clear and a strong move looked imminent, I wouldn't want to trade either of these two stocks myself. Take JDSU for example. If it doubled in price your gain would only be $2.27. You'd have to go as far back as October 2001 to find a move this big. (See the weekly chart, attached). How probable is it that this stock will double its price in one month, let alone one week? I grant you that the daily chart looks a lot more seductive than the weekly chart, but the latter suggests that this is a stock that ain't going anywhere very far or very soon.
Just my thoughts Mr. F - please post your views as to why you like it and what you think it could do.
Tim.

 

[Mr.F]

Hi Tim...JDSU

Hi Mr.F,
Welcome to T2W!
Your charts are very colourful, but the "very interesting technical position" that you refer to isn't clear to me, I'm afraid! Even if it was clear and a strong move looked imminent, I wouldn't want to trade either of these two stocks myself. Take JDSU for example. If it doubled in price your gain would only be $2.27. You'd have to go as far back as October 2001 to find a move this big. (See the weekly chart, attached). How probable is it that this stock will double its price in one month, let alone one week? I grant you that the daily chart looks a lot more seductive than the weekly chart, but the latter suggests that this is a stock that ain't going anywhere very far or very soon.
Just my thoughts Mr. F - please post your views as to why you like it and what you think it could do.
Tim.

I TIM,

Thanks for your reply and weekly chart for JDSU.

Off course in the long term JDSU is still in bearish mode, but that´s not my timeframe of action..If it was for sure i wouldn´t use a daily chart.

I don´t agreed when you say: Take JDSU for example. If it doubled in price your gain would only be $2.27. ONLY!? If it doubles the price it meens that you would have an 100% trade...is that so bad? i think not. (Attention: I dont say that this will happen)

To a trader the percentage variation is more important than the price...thats my point of view.

Its the same if you buy a stock for $1 or $100 and then sell it at $2 or $200...you always gain 100%.

Nevertheless...

My intention was to show my charts and share some stocks that are on my watchlist has a potential trade with short/medium term objectives.


Some technical facts that got my attention in JDSU:

- 50 days ema crossing the 200 days ema in a ascending movement. This a bullish cross that didn´t happen since the end of 2003, just before the rallie that took the quote from $3.50 to $5.88.

- Short-term bottom well defined in the $1.32/$1.50 area.


Best regards,
Mr.F