Tuesday, 27 March 2012

Ezion breaks out -- going for $1.08/9 or stopped in its tracks by a double top at 98/99c ?

Today was an eventful day for stocks after many false breaks in recent past where stocks often break out on relatively high volume for only one day , then only to see its price fall back below breakout price over subsequent T+x followup  periods  , forcing many contra players or weak holders to cut losses. Alas , such is the convoluted process of accumulation.
Today was T+5 for the Ezion breakout last Tues,  there was supposed to be dumping by contra players which caused subdued price action in the morning
By 2pm , most contra players have already dumped or rolled-over , supply was depleted and one Ezion operator decided it is time for a breakout by whacking 767 lots at 93c  @ 1430 hrs.. This was followed up by a flurry of activity where we see > 1k lots buys at ever higher and higher prices all the way to 97c.

 I had been a follower of Ezion since a few weeks ago ( see 8 mar post predicting a short term target of 94c when it should be 92c for contra play, anyway 94c was subsequently fulfilled after a gruelling  8 day wait to  20 mar only to see it fall back later to 91c  ) .

 I sensed from Ezion price action in past 2 weeks that it had relative strength despite its "sister" company Ezra plunging ahead of and after  a share placement .
 So given the tailwind provided by the Bernanke speech last nite and the STi road map i had and my belief we're due for a break beyond 3030 in the Sti , I thought it was not too late to partake in a  Ezion move even after the Dow had risen 140 pts last nite.

Add to that, yesterday's Ezion move was down which was good, to scare the wits out of contra players who bought high earlier .

 So in the morning  i accumulated 250 lots at 92.5c in anticipation of a breakout , probably buying from contra players who bought at 94c last tues/wed.

 My prayers were answered by 1430 hrs when one brave Ezion operator whacked  767 lots at 93c to cause an actual  breakout.  Upon which i immediately follow-up with another 250 lots at 93.5c to make up a total of 500 lots at average price of  93c. There was no looking back til it hit 98c upon which we see some downward reaction. 
Where would Ezion go tomorrow or over the next few days ?  Will it hit 98-99c and fall or proceed to go higher to $1 + ?  

If Ezion hits 99c - $1 tomorrow or day after or after , I will dump two thirds of what i bought. I will keep the rest to ride til $1.08-$1.10..

Of course if the price action over next few days proves that my tape reading is all wrong , i will react accordingly ..


1 comment:

sacredmarket said...

Bill, Congrats on you trade. Can take a look at Artivision, not sure if it showing or sharing the same trait as Ezion. Thank you.