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TRADETRENDS HIGHLIGHTS AEHR & SDVI
UPDATE ON LAST WEEK'S TRADE TRENDS
Update on last week's recommendations: SDVI traded sharply higher last week following our alert last week. We were quite pleased with its 40% intraday price advance following our alert. Assuming we don't see a break of .034, on a closing basis, the stock is currently sitting on its trendline and should be considered for accumulation at these levels, though it is not as attractive as when our first alert was issued last week.
HIMX traded as high at $5.75 four days following our pick at $5.40. After this 6% increase in four days, it too is sitting on its upward trendline and should be watched for accumulation with a new stop-loss for short-term traders at $5.25.
UTAH URANIUM CORP. (OTCBB: UTUC)
On February 6th, 2008, Utah Uranium Corporation (UTUC) broke back above its previous resistance of 0.55 on more than double its average volume. This natural resources company dedicated to the acquisition, exploration and development of uranium properties in the U.S. has spent the last few weeks building a base in this area. The weight of evidence suggests that this prior resistance level has become its new support. Also supporting this is the fact that on February 26th, the stock bounced off its 13 day moving average on expanding volume with the MACD differential (the spread between the shorter average and longer average) beginning to stabilize.) These indicators combined suggest an upside bias in the intermediate term.
Outlook: Short-term aggressive traders should consider accumulating shares with a near-term profit objective of .90 with a stop-loss .48. Longer-term traders may also begin to accumulate shares but look to take profits 1.30 with a stop-loss at .35.
AEHR TEST SYSTEMS (NASDAQ: AEHR)
AEHR Test Systems manufactures wafer test and burn-in systems used to analyze memory and logistics for the semiconductor industry. On January 7, 2008, the stock experienced a break-away gap up on explosive volume. The stock spent the next several weeks testing and retesting the durability of the gap. During late January to early February, the stock traded in an increasingly tighter and tighter range (the so-called "coiled-spring" effect). Volatility returned to the stock in the middle of February with a "shake-out" on February 19th, followed by what we signal as an apparent "break-out" in the making as of February 26th. This potential upside break appears to be confirmed by above average volume, a stochastic crossover, an expansion in the MACD differential (the difference between the short moving average and the long moving average) as well as the 50 day moving average crossing above the 200 day moving average.
Outlook: Traders could consider accumulating the shares on any weakness with a near-term price objective of $9.00 and an intermediate price objective of $10.00. Short-term traders should consider a stop-loss just below the 13 day moving average at $6.87. Longer-term traders should consider a stop-loss at $6.59, just below the 200 day moving average.