QuantitativeExhaustion
Long

Tech the Halls Full of Radioshack Stock, Sell at 2.40

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Radioshack is ready to unload there inventory this Christmas shopping season. CEO             , Joseph C. Magnacca, introduced the Tech the Halls promotion for the fourth quarter. Consumers might be tempted to stop by a local Radioshack for a cheap tech Christmas stocking stuffer.


The stock pattern...

I'm seeing a typical Fous Revival Pattern shaping up in RSH stock . Fous patterns are very reliable, with a 73% chance that the stock will reach it's third resistance target price. There is also a decent chance that the stock will breakout at the third point of resistance. There is one caveat, we need the market to continue to hold up or move higher for RSH to have a breakout. It was around this time last year we saw Best Buy             BBY             stock breakout and was the best performing stock of the past 12 months.

I should also add, for several months Radioshack has been listed as a top 20 short interest stock . So we could get an added short squeeze bonus pushing RSH even higher than I'm forecasting.

I will also be using near term option exp             . with a long call strategy to maximize my gain. http://www.dopamgames.com/game-review/2013/11/14/tech-the-halls-full-of-radioshack-stock-and-video-games#commentsWrapper
willysmilence
3 years ago
you must be kidding, man. Market will go down soon. We don't have that time.
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QuantitativeExhaustion PRO willysmilence
3 years ago
I was a bit bearish myself a week ago. That mood has passed once we broke S&P 500 1781 resistance. Clear and parent danger for the market in mid to late January with the next US government shutdown for Feb 2014. Until then, we will reach 1825 as our next target.
+2 Reply
BubbleBurster
3 years ago
willy, when the SPX as a whole correct, cheap stocks with excess cash typically rally....
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QuantitativeExhaustion PRO BubbleBurster
3 years ago
I'm thinking it will be catch up time for fund managers that are behind for the year. They'll take risk in a stock like Radioshack for end of year spec bet.
+2 Reply
willysmilence BubbleBurster
3 years ago
i am not sure if RSH is also the case, look at YTD return, really hard to classify RSH a cheap stock here. Just my opinion
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snapshot


For RadioShack stock to breakout we are going to have to see 4th quarter earnings improve and revenue to increase
+2 Reply
QuantitativeExhaustion PRO QuantitativeExhaustion
3 years ago
Here is what happens when Radioshack unloads its inventory
snapshot
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willysmilence QuantitativeExhaustion
3 years ago
i wished that you are right. I bought some Jan calls earlier. But i am not sure to get benefits now.
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QuantitativeExhaustion PRO willysmilence
3 years ago
I'd like to see a bit more support around 2.65 - 2.90 before the Christmas shopping season starts, and we start getting weekly retail store results.
+2 Reply
charttrader PRO QuantitativeExhaustion
3 years ago
Wow, this is cool! How did you add fundamentals on the chart?
+2 Reply
VolHunter charttrader
2 years ago
You can add fundamentals?
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AlexandreFF
3 years ago
Good job JR !
+1 Reply
snapshot


Here is a weekly chart of Radioshack (NYSE: RSH) stock price. As you can see inventory plays a big role in RSH stock price.
+2 Reply
mcducks
3 years ago
This is shaping up well since you published it. I wonder what kind of resistance might show at $3.50, only a few breakouts above this and retraces lower.
Refilling the gap / Potential resistance
+1 Reply
Nice find. I'm thinking that could be the next level met during Federal Reserve DecTaper discussion second-third week of December.
+2 Reply
US consumers spending an average of $438 on Christmas for 2013, that's more than previous 12 years.
+2 Reply
snapshot


Faster signals showing positive divergence. Slower signals are neutral.
+2 Reply
Nice Pop Today
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Looks like investors will get a second chance. Went to RadioShack for Black Friday discount items were cleared off the shelves first three hours, and online inventory was sold out as well. Looks like RSH played it right by not opening on Thursday and expecting people to buy smaller items, flash drives/HDMI/Batteries at RadioShack. They were also selling phones and phone plans just as fast
+2 Reply
charttrader PRO QuantitativeExhaustion
3 years ago
Thank you very much for the update!
+1 Reply
Panzer_4183 QuantitativeExhaustion
3 years ago
I am watching this stock for months, now its almost in the zone for trading around 2.6-2.4 . 2.48 is my entry 4000 stocks
+2 Reply
QuantitativeExhaustion PRO Panzer_4183
3 years ago
I am as well, looks like 1st quarter earnings Feb. 24th will be a trigger that can help RSh fly. I'm not so sure we break this ascending support line. Very much like where it is now. I trade options/not so much stock buying, so timing is important for me. We want this 2.60 area to hold for next two months to keep the volatility extremely low and options cheaper. If I'm looking at this left for dead carcus like a vulcher, I'm sure others options traders are as well.

We both can take down a 6 figure gain.
+2 Reply
QuantitativeExhaustion PRO Panzer_4183
3 years ago
snapshot


You're right

We could see a quick drop and into a diving board pattern. Those are very quick and it's usually a bearish fake-out to rid weak hands so big money can scoop up cheap shares.
+2 Reply
snapshot


I am recapping and updating RSH stock chart.

+2 Reply
Panzer_4183 QuantitativeExhaustion
3 years ago
snapshot
i agree with you. I am looking for littlemore down for entry but basically price is so squeezed that next stop below 2 could be BK. Lots of Institutional players are involved in this stock, even if they wanna dump the stock they would need to raise it up and suck in the small investors. Thats the reason i think that this is a good opportunity for buying this stock. On the other side, new managemant is in the house so it could have a good chance for turnaround . Any way speculative buy
+1 Reply
speederred09
3 years ago
Peepui, That 's your job verrygood.
+1 Reply
snapshot


Double Bottom Pattern... Now the question is what shape -- Adam or Eve??
+2 Reply
snapshot


Broke support a few days ago. So now I'm eyeing up this long term double bottom chart. I will be dipping my toe in long call options probably first week of Feb.
+1 Reply
QuantitativeExhaustion PRO QuantitativeExhaustion
3 years ago
I'm confident this double bottom will playout. However, I'm not sure about how our second bottom will look, Adam bottom (pointy short lived) or Eve bottom (long duration - like previous bottom)?
+2 Reply
Panzer_4183 QuantitativeExhaustion
2 years ago
its all ok.....looks like bad results are priced in. 2.00 held so lets see how the game will be played.
+2 Reply
QuantitativeExhaustion PRO Panzer_4183
2 years ago
Looks also like a C&H so we could see more rounding before the ride up
+2 Reply
VolHunter
2 years ago
This was broke support... not talking of bankruptcy chapter 11
+1 Reply
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