Stock Technical Analysis: Getting Explosive With HSTX
Written by Lawrence on September 25, 2009
HSTX is one stock that should be on your watch list. Thanks to one of our astute readers who had recently requested for an analysis of Harris Stratex Networks (HSTX), we now have a bullish stock play for the next few days. As shown in the chart, HSTX has pulled back sharply over the last few days after gapping up over $7.50 in early Sep. Recent price action, however, indicate that the stock may be ready to explode to the upside very soon. Three indicators here. Firstly, the recent pullback has traced out a bullish flag pattern with declining volume pattern during the flag formation. Secondly, the stock has retraced to the support zone around $7.05-$7.30. Thirdly, the 20-day and 50-day SMAs are rising to converge with the support zone. Traders can initiate an aggressive position in HSTX once the stock moves decisively over the upper flag line. Go hit them!
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