Sunday, February 24, 2013

Stock Picks: $FN, $QIHU, $SHFL

Fabrinet featured February 19th.  The stock enjoyed three days of strong buying in early February before consolidating at $16. It made a break of $16 in what should have been a continuation of the move, but the rally failed to materialize. A MACD trigger 'sell' has to be noted, but other techincals are firmly in the bullish camp. Remains a long play until there is a break of the 20-day MA and/or $15.51 - whichever is the lowest.


QIHOO 360 Technology operates in the field of mobile security. The stock has been trading within a $30-33 range since the start of 2013.  This range offers a low risk opportunity on a break outside of this range, which based on the prior trend, should be higher. A MACD 'buy' has turned to what looks like a whipsaw 'sell' - a signal which may act as a bear trap, providing further fuel for a drive above $33.  My fundamental view on the stock is available here.


The final stock, Shuffle Entertainments (SHFL) manufactures and distributed casino games.  This stock is shaping a very nice cup-and-handle pattern with handle support at $15.81 (a good place for stops). Like Fabrinet, there is a MACD trigger 'sell' to negotiate. This may suggest a break of $15.81 is on the cards. Should this happen, an aggressive short play with a stop above $16.25 and a target of the 200-day MA could be considered. But the favoured play is an upside break of $16.25. My fundamental take on the stock can be read here.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. You can read what others are saying about Zignals on Investimonials.com.

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