Another trading idea with a bullish ABC pattern in the making. The stock, IMMR – Immersion Corp., is setting up well in all time frames. The monthly chart displays a huge W-bottom in the making, the weekly chart offers great weekly MA 30 support, the daily chart displays the typical characteristics I am looking for: Break-away gap on huge volume indicating something meaningful has happened. Ensuing thrusting move to the upside. Then a consolidation period with decreasing volatility and price slowly but surely hitting multiple MA support. The highest odds proposition in such a situation is for the uptrend to resume. Hence one should focus on going long the stock. I bought an initial position and my plan is to add to my position in order to have a full position once it clears the recent high as indicated in the monthly chart annotations.
The presented set-up is a potentially very powerful one as it will induce various market participants to seek long exposure. This is what I call ‘other time-frame market participants’ joining the party. In plain English: Traders basing their trading decisions on either daily, weekly or monthly charts all have a valid technical reason to seek long exposure. Ultimately this has the potential to trigger a meaningful move to the upside. Click on the charts to maximize:
Monthly chart :
Weekly chart:
Daily chart:
IMMR – Immersion company overview www.immersion.com/about/company-overview/index.html:
Leading Innovator in Haptics Technology. Founded in 1993, Immersion (NASDAQ: IMMR) is the leading innovator in haptics technology with over 1,200 issued or pending patents in the US and other countries; Immersion’s TouchSense technology provides haptics in mobile phone, automotive, gaming, medical and consumer electronics products from world-class companies; Immersion’s Haptic Development Platform simplifies the design and implementation of haptic effects for developers while ensuring the haptics are optimized to play on all Android devices. Using Immersion’s high-fidelity haptic systems, partners can transform user experiences with unique and customizable touch feedback effects; excite the senses in games, videos and music; restore “mechanical” feel by providing intuitive and unmistakable confirmation; improve safety by overcoming distractions; and expand usability when audio and visual feedback are ineffective.
Risk is necessary for rewards worth having.
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