RF Micro Devices, Inc. (RFMD)

[phrantic]

6-Month Daily Chart

Pattern: Rising Wedge
Resistance: $8.35
Support: $7.51, $6.88, $6.75, $6.50 (Blue, Orange, Green)
Target: $6.50 (Sell Stop)
Strategy: Put Options; watch for violation of support (blue) on heavy volume before entry; sell stop at $6.50; re-entry upon violation of trendline (green) on heavy volume. One could take a 10% call position as a hedge out of caution.
Notes: Price gapped on markedly expanded volume (red), yet displays exhaustion as seen in narrow range of candle body; candle tails (spikes) should be ignored as they generally represent only one trade and can happen at any time during the trading day; the candle body always represents the majority of market sentiment; any US/Euro-shock could exact an unpredictable influence on price.
CMF: Displays marked decline in buying pressure.
StochRSI: Displays strong positive sentiment at 0.873, but when viewed in light of markedly expanded volume, falling CMF and a narrow candle body, suggest exhaustion and a likely downturn in price.
ADX/DI: Shows strength to existing move, however I feel this divergence between other indicators/overlays is trumped by a narrow candle body, sharply declining CMF, and expanded volume.
Volume: Core indicator.