RDCM Radcom – High Potential Stock With Bullish Monthly Pattern Pressure

by Olivier on December 28, 2014

The Russell 2000 has just put in a 52 week closing high. Pattern pressure is huge, so if small caps start to outperform, this could be the beginning of a strong trend to the upside. Probably the most explosive small cap stock under extreme accumulation I can find right now is RDCM – Radcom.

The compressed monthly log chart is displaying huge pattern pressure. To be more precise, a bullish inverted head and shoulders pattern. As outlined in my chart annotations I see current momentum carrying the stock price into the area delineated by the blue horizontal lines. It is only then I would expect a consolidation pattern to develop.

This is a small cap stock with an extremely low float. Anything can happen. Which is a good thing if you are long and a strong move is starting to unfold. A true ‘High Potential Stock’. It goes without saying this is only for aggressive traders, position sizes should be kept rather small. I bought an initial position and plan to add if the stocks starts a consolidation pattern and then resumes its uptrend.

Click on RDCM – Radcom monthly chart to enlarge:

If RDCM goes on to complete its bullish inverse head and shoulders pattern, much higher price targets will trigger. We’re not there yet, but so far the stock looks extremely promising.

A big thank you to all my loyal readers. I hope you had a nice Christmas and my best wishes for a Happy New Year!

RDCM company description from Yahoo finance:

Radcom Ltd. provides service assurance and customer experience monitoring solutions. The company offers its solutions for next-generation networks, including wireless and wireline. Its product line includes the MaveriQ, a next-generation probe-based service assurance solution that enables telecommunications carriers to carry out end-to-end voice and data quality monitoring, and to manage their networks and services, as well as supports a range of applications, including network troubleshooting, network quality monitoring, service quality monitoring, customer experience management, customer quality of service monitoring, and customer service level agreements monitoring. The company also offers QiCare, a customer care application that enables service providers to view subscriber reports and understand the subscribers’ behavior and the quality of services being used online; QVIP, an application that enables service providers to monitor and maintain satisfaction for the subscribers; QMyHandset, which enables identification of problematic handsets, and provides analysis of the cause of the problem; and the Performer family, an open platform supporting a range of test applications over various technologies. The company’s products facilitate fault management, network service performance analysis, troubleshooting, and pre-mediation with an operational support system/business support system. It serves telecommunications service providers, labs of telecommunication service providers, and data communications and telecommunications equipment developers and manufacturers. The company sells its products directly, as well as through a network of independent distributors and independent representatives worldwide. RADCOM Ltd. was founded in 1985 and is headquartered in Tel-Aviv, Israel.

Ideas without application are useless.

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