Bullish Cup & Handle Formation. Accumulation pattern and breakout. Bullish news circulating relating to iPhone6 - possible use of GTAT's Sapphire screen technology.
Previous breakout had a similar pattern prior to the breakout. See green boxes at the bottom. So, even though GTAT is overbought, it can continue to make a move from here.
Risk is high due to 4% average daily ranges for GTAT (80 cents/day).
Upside to $24-$26, but risk is $2.40 from entry.
Tim 11:36AM EST 7/2/2014 20.13 last +0.87
Comments
A-shot
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Is it oversold now? -12% is a lot for a downgrade...
timwest
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Well, it is a range-expansion decline - so I will be watching for 3 more days to see where it goes. Good chart gone bad. Could be a sign to sell Apple, since this is rallying on the heals of its rally.
A-shot
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Wow. Panic sell? Was it rumors or official news? Such a game changing move...
timwest
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There are about 30 days of time support right where GTAT closed. This is a key "value" support zone right where it is at the close today. Down at 15 there are only 7 days of trading which implies that demand was so strong at that level that it could only last there for 7 days to clear out any supply. But now you have a drop down to the price where 30 different days occurred at this price just over $16. Those buyers ought to be there ready to buy more stock. If they aren't there to hold it, then watch and see where it goes. For now, the range expanded down today so it is more logical to step aside and watch it until it settles down into tighter ranges.
A-shot
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After some research i found that it was 2 downgrades and an insider sell - ceo dumping 25% of his shares...and wouldn't you know it - insider sell happened first. The dowgrades went in unison and were regarding suppositions on gtat not having a major order for the Iphone 6 glass from apple. Speculation i can deal with - who trusts what analysts suppose anyway {news are not confirmed even, just their hunch}. Coupled with a 25% stake sell - gave a good sell signal. I did wonder who it stopped at 15% and indeed, 15-17 was a nice support zone - but with these "stelar" news aligned, i have that bearish feel for it.
In my own charts, the price is still in tact with the uptrending channel with a resistance at 15.75 at this point and up.
A-shot
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Oh, todays volume was humongous, plus CCI and RSI have some room to dive...so i wonder if the selloff is to continue.
I4
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I just looked at yahoo key statistics page for this stock and it had a 39.9% of its shares short. Does this worry you at all? I bought in two days ago and want to know your view of such a high shorting percentage. It was last updated may 30, so do you think most people have already covered their shorts or there's an eminent short squeeze?
timwest
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Thanks for pointing out the short interest. I doubt that much of that 40% short interest was covered in the last month, but my premise wasn't for a short squeeze, so in my mind, the high short interest is a bonus. The volatility is high to begin with, which requires wide stops. What I will be looking for is unusually high volume in GTAT on an up-day to signal that more news could be imminent about their Apple iPhone involvement and details on production estimates. Feel free to post updates if you see something happening.
HermanBrummer
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Certainly look like a good chart, just a bit of a pricey place to get in
timwest
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I graphed out a pull-back to $19 (note the yellow bars on the chart at the right). Also note the frequency of trading action around the $18 level = massive support. Note the highest low from back in April, that should mark the most TIME SUPPORT for GTAT. It is clearly not a "BARGAIN" price when you look at the past, it is what the prices in the FUTURE are that determine whether or not these are low prices or not. Since we don't know the future, we can just state the facts and try to buy against the levels where we think there are buyers JUST UNDER where we are buying. If those buyers don't end up being there, then we ought to get out.