Bullishbar
FSL gaps up yet againI last looked at FSL a couple of weeks ago on the second gap up after the break of 2014 pivot high. This gap up on 13th February was not a convincing one (due to the indecision candle) so the subsequent pullback was not unexpected. However, the gap did not get completely filled - and yesterday's gap up (on higher volume) comfortably cleared the most recent pivot high.
Reasons to take a buy position on this stock are:
* breakout bar is bullish
* uptrend since end of January
* trading above weekly and daily 50ma and 200ma
* higher volume on gaps up
* break above recent pivot high
* break above $40 round number
The main reason against taking a trade on FSL is that there is only a few years of data so we cannot see how price has behaved in the past to major market events. In addition, for near-term trades the previous two gaps have not provided an opportunity as price pulled back from the high of the breakout bars. However, neither of those two bars were bullish so this gap up should be taken on its own merit.
