1) As per the candlestick pattern, it shows that it is a Gap Down Doji, which means that indicates that the bulls and the bears are at an equilibrium, a state of indecision. Also the gap down means in this case means that whatever needs to be sold already sold here.
2) The MACD and Stochastic show a negative implication on this stock. It shows that this stock might go down futher in the future.
Although, most of the indicators show negative signal for this stock, however, I believe that this stock will be an exception for the other stocks that I have analyzed and it will reverse the downtrend line by this coming Friday morning.
I am very confidence this stock will outperform in the future because of its growing revenue and profits that it will announce on this coming Jan 27, 2011. I believe that it will announce a suprise increase in its quarterly earning that will whoop the analysts estimate by 15% or more.
Here is why:
Dec 26, 2009 = 3.67
Mar 27, 2010 = 3.33
Jun 26, 2010 = 3.51
Sep 25, 2010 = 4.64 (up)
Jan 18, 2011 = 6.34 (19% higher)
Dec 26, 2009 = 0.16
Mar 27, 2010= 0.31
Jun 26, 2010 = 0.25
Sep 25, 2010 = 0.40 (up)
Jan 27, 2011 = (at least 15% higher)
If you look at the earning announcement for both the companies, the correlation between the jump in earning is very close.
I would bet big that on Jan 27, 2011 that Cirrus Logic will announce at least 15% higher earning than the analyst estimates and it will send the stock sky rocker to at least 20% gain. If you look at the history of many stocks, it will have a tendency to jump up with a big gap especially small cap growing companies like Cirrus Logic.
If turns out to be bad and I lose on this bet, not only I will take a big hit and bite the bullet, as promised on my previous post, I will shut down this blog, and I will never blog about stocks market ever.
Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in The Market Oracle Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence.