Flexpower Inc. (FLXP)

[SPM555]

Sure can, I have lots of them for this play. This is a longer term swing trade based on a 6 year downtrend being broken recently. I call this type of play a lotto breakout play, and the reason I consider it a lotto is because you're taking a huge risk by buying when there is no action, in anticipation of some volume and momentum coming in, which gives you liquidity to sell into. The criteria is a long term downtrend where the stock is beat down mercilessly, a break of that trendline along with an extended period of sideways trading, and the last thing is you need to see that initial wave of buying on very heavy volume. I don't jump in then, I wait for the low volume pullback, at which point I buy into that short term weakness in anticipation of the longer term trend (which is starting to turn up for the first time in a long time, or first time ever as in MONA's case)continuing to move up. The overall conditions are very favorable to buyers, and any news or positive developments would be a catalyst for a significant breakout. News isn't even required, I played a very similar setup last year, XHUA, and that one ran 700%. This first chart shows the entire history of MONA's price action, and you can see it's trading on the right side of that trendline for the first time ever.



You can see in that chart the long term downtrend, the sideways bottoming action, the initial wave of buying on huge volume, the low volume pullback, and finally the broken trendline. Monthly charts are great for looking at the bigger picture, and overall MONA's is looking very favorable, so now you have to zoom in to shorter time frames for timing your trades better.

Here is a weekly chart where you can see the action a little clearer, plus I drew that main resistance to watch for. If you don't want to take a chance here at .0003, I'd highly recommend at least watching and waiting for a volume backed break of .0004. I can all but guarantee that if you see a convincing break of that (news or not), you're going to see this stock move.The last thing to note is the bollinger bands (pink lines), which are tighter now than ever before. Tight bollinger bands represents narrow trading ranges, narrow trading ranges generally lead to sharp price movement (and vice versa). One way or another those tight bands are preceding some sort of breakout, and my money is on it being to the upside.



Finally you have the daily chart, but there's not all too much you can see here that you can't see on the weekly chart. I also drew the resistance, and you can see that the daily bollinger bands are also getting very tight. The moving averages, everything from short term ones to the 200, are all clumping together. Again this is just a sign of the price trading in a narrow range for quite some time, so it's also often a sign that a breakout is forthcoming. I didn't include them on this chart, but as far as indicators go, Accum/Dist, Chk Money Flow, and On Balance Volume are all looking extremely bullish. This is important because a bullish weekly or monthly chart doesn't mean jack to short term traders if the daily chart isn't ready to move.



This is one of the cleanest setups of this type I've seen in a while. My timing on them usually sucks, I waited 6 months for XHUA to really pop, but eventually they tend to play out. I've been holding MONA since Nov, so I'm really hoping that it means it's getting close to popping. Like I said news isn't always totally necessary, but a nice catalyst on a chart like this would go a long way. Merger news would be very nice right about now. =)