Stock Chart GXDX

Stock Chart Analysis GXDX

Genoptix, Inc. (Public, NASDAQ:GXDX)

Regular readers of my blog know that I love stocks trading close to all time highs. While GXDX is a fairly recent IPO, it has found solid buying recently, despite the turmoil in the markets. It has found solid support at the 200 sma over the past month and appears to be headed towards a test of the high 30's. However, this doesn't mean I will rush out and buy it tomorrow morning. Often, when I find a chart like this one that looks like it is headed for a retest and possible breakout, I try and buy closer to it's 20sma, in hopes that it will use that average as support moving forward. This allows for a tighter stop loss, and improves the odds of a winning trade. There is always the chance of missing out on the trade, but chance are that it will retrace at least a portion of the 15-20% + move from the past few sessions. The ideal scenario would be a pull back to the 20sma and a solid reversal on intraday charts, or even the daily charts. Let's see if that opportunity presents itself over the next day or two. As a warning for readers, GXDX reports earnings on 11/6, or Thursday. This may make this a tricky trade, as it may not move till after the release.


Good Trading,


Joey

for more analysis, check out downtowntrader.com