KMAG And Facebook IPO Technical Update!
Good afternoon mi roacheros!
Here’s a quick end of week update by your Senorita for 2 of the hottest stocks on blast throughout the trading world this week. I am of course talking about Facebook (Nasdaq: FB), and for the sub-basement stinky pinky fans KMA Global Solutions (Pink: KMAG).
Let’s start off with FB since it’s the easier of the 2 as far as the trading action goes. As I mentioned in yesterday’s blog about Facebook there is a very nice $2 trading spread that is easily flippable for .50 – $1.00 per share and FB has been delivering textbook style. Watch the bid stack on L2 and then sell into the .50+ cent pops, easy as pie. It might not sound like much but it all adds up at the end of the day, and hey profits are profits and nobody ever went broke taking profits, especially if you are flipping FB multiple times per day.
Volume appears to be slowing down which can mean that the large institutions might be done dumping their flurry of shares for now, but it also shows that there really isn’t much buying interest in Faceplant either. So there’s your good news and bad news for the much trumped up and hyped Facebook Initial Public Offering.
So for now, I see FB trading in that $2 range since it appears that only flippers have any interest in buying and selling multiple times intraday. There appears to be a nice bottom in as of today at $31, I feel safe (for now) calling $31 bottom since it has been tested multiple times yesterday and today and has held rather well.
Can Facebook break the $35 resistance? Will traders flip it higher? Will the big boys unload a crapload more shares? Your Senorita will be keeping an eye on it, and will update accordingly, but for now I still see it trading in that nice $2 easily flippable spread whether at $31-$33, or $33-$35.
I’ll get to KMAG’s incredibly EL TORO techs after a brief roachy reminder:
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Let’s wrap this up with KMAG, since this baby looks like a pressure cooker ready to blow the hell up.
Look at that beauty, the accumulation is starting to spike yet again, the RSI is in a very healthy range of only the mid 40s, the MACD is about to go positive, and the trading action today showed a lot of people accumulating the low to mid .006s. That was a very orderly exchange of shares between those looking to get out from the .004s, and KMAG managed to close up almost 12% for the day.
It appears that KMAG has set some new support levels intraday with .0063 being the level that was tested but held, and KMAG did in fact close over former resistance at .0065. Lower level support for KMAG comes in at .0055.
Resistances for KMAG lies ahead at today’s .0071, and the 2 PITAs at the 200 DMA of .0081, and the 50 DMA of .0088. Should KMAG break and hold above the 50 DMA, I think it goes .01+ easily in my humble roachy opinion.
I personally expect tomorrow to be slow all across the boards due to the long Memorial day weekend. Remember kiddies, Monday is a market holiday so don’t forget to make a mental note of it. Don’t wake up on Monday ready to flip dem pennies and say, “Hey is my watchlist and Level 2 broken? Why isn’t anything trading?” I have been guilty of this myself haha.
Senorita “Enjoy the long weekend mi amors!” Roachita
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position in these stocks. We reserve the right to buy or sell FB and KMAG at any time
after this post.
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