Investing in the technology sector of NASDAQ yesterday for me and buying 400 shares of PWER stock (Power One Inc.) has already proven profitable. Entry signals for going long on that stock have been the Double Bottom in the daily chart, the MACD divergence at that support level and the retracement to the moving average in the monthly chart. My stop loss is about 50c below the entry point ($7.51) and I’m looking to trade out half of the position close to $8.
PWER stock’s traded volume has really picked up during 2010 uptrend, which showed 200% annually gain of the stock price going from $4 per share to $12! Now, as the volume gradually decreases month by month and the retracement continues, I would be looking to go long on that stock, in case the uptrend resumes, or at least tries to reach again for that resistance level at $12. So, buying PWER stock yesterday during the first couple of hours of US stock trading seems a promising trade, as the stock price moved in favor, gaining 18c per share and also bouncing off the moving average at the hourly chart.
Disclaimer: I’m long PWER.