Interphase Corp. (INPH)

[Mohammad Faizan Azam]

Here is the latest pick from Faizan's Stock Picks

 

 

 

"Interphase Corp. (INPH) is a technology company which specializes in computer peripherals. As of now it is trading at $5.20 a share. Interesting formations are appearing on INPH's chart which I would like to point out.

 

The following chart is a daily chart for INPH with an Ichimoku cloud overlay.

 

 

First thing to notice on this chart is that starting May 2009 INPH established a continuous downtrend which finally lasted in November 2010. During this 19 month time period the stock lost more than 80% of its value. At that time the stock was highly oversold, and was ready for a good upthrust.

Then, starting December 2010 the stock made some rapid upward moves and after about 1.5 years it finally broke above  the Ichimoku cloud on incredibly high volume. Supporting this increase was a sharp uptrend in the stock's RSI which is a very bullish indicator. Also, at the tip of this uptrend the stock broke a very significant resistance level at $6.00 leaving no overhead resistance on this 3 year chart. This clearly shows that the current tape formation for this chart is very healthy and we can expect a continued upward trend for the near short term.

 

Now lets look at the another chart for INPH.

 

This is a one year daily chart without the Ichimoku overlay. On this chart we can see that after the recent high at around $6.50 the stock is now trading in a narrow symmetric range. A breakout above this range will indicate another bullish run, while a breakdown would mean a correction. So this chart is worth keeping an eye on as well.

Also, notice that recently the 50 day and the 200 day moving averages crossed over indicating a bull. Combined with that the Chaikin Money Flow indicator shows that the that the stock has remained above the crucial zero line for most of the last six months indicating that the stock is fueled up now and is ready for a ride. (For more on volume indicators read The Trader's Book of Volume: The Definitive Guide to Volume Trading).

Finally to decide on good sell points we shall take a look at the following all data chart for INPH.

 

 

It can be seen from this chart that the next resistance level(from 2007) is around $9.00-$10.00. So, this can be a good sell point for mid term traders. This is just a casual advice. Rely on your own intellect to choose a sell point, because finding a good sell point is more of an art than science.

 

(Being a pure technician I usually avoid listening to news about stocks. But going against my own beliefs I would like to throw in one: Interphase Corp's directors Strunk Christopher, and Myers Michael collectively purchased 9000 shares of INPH on 15th and 18th February.)

 

So to sum up I believe INPH is presenting an excellent buy opportunity, provided that the stock breaks above the narrow trading range (which may take a few weeks). That's all I have for now. Don't forget to subscribe for feeds. Have a great weekend!"



This Post was from Faizan's Stock Picks

[J CHAN]

Coorection - Stop at 1% below prior day low, not prior day close.

[J CHAN]

FTK does not seem to have much gas either. Pop one day and do nothing. Kind of make you sick.

 

Start all over. GLUU, FTK, INPH all have nice consolidation pattern but no high volume spike to indicate imminent breakout and left alone achieving escape volocity.  Put them back on the burner.

Tomorrow, buy BANR, SPPI and GENE on limit not much higher than today's close.  If the transaction close, put stop immediately below 1% yesterday close.  Every night move stop up to 1% below prior day close. Stay in the stock until stopped out.  Sound like a good plan? If we can have one or more achieving escape velocity on a regular basis, we should do okay.  Of course, if one stock go crazy and goes up 20%, you may want to take profit instead of moving stop up. 

 

My good friend, your comment on the above strategy is welcome. I am still soul searching. Help the Too Smart Person out a bit.

[Mohammad Faizan Azam]

You are right GLUU seems a much better buy than BSFT.

And FTK seems like a never dying bull! for now...

[J CHAN]

FTK ready to go again.

[J CHAN]

GLUU seems to be a better buy.  BSFT has no gas - for now.

[J CHAN]

INPH may be gathering energy to start an up move.  BSFT jumps at the gate first.

[J CHAN]

SSN begin running up before the market correction.  Drop sharply on the panic low day. But I think it is about to begin ACT 2.  Pullback after gap up this morning may well be the opportunity to jump in for the ride.

[J CHAN]

BOOM starts booming again.

[J CHAN]

I take up MCZ 3 days ago to challenge your INPH.  Let see if I got a real animal.

[Mohammad Faizan Azam]

FTK for sure made an amazing move today.... I couldn't have anticipated that....

I hope INPH hits the $8.00 target in the near future...