Monday, November 22, 2010

Update: EBIX stabilizing after earnings report pullback to 20.62

EBIX took a bit of a wild ride after reporting earnings on Nov. 9, 2010: first up to 28.21 and then down to 20.62, nice run for an options strangle :) It now seems to stabilize above the trend line in the figures below, and above the 30 EMA in the weekly chart. A good entry point for further stockpiling might be when the stocks moves above the minor resistance 22 on increasing volume and relative strength. Carefully watch then what will happen at the mayor resistance 22.64: if it bounces  back, get out quickly at a small profit. If it overcomes the resistance, the next target would be the high of Nov. 9 at 28.21. I tight stop can be set below 20, or a riskier one with a bit more room to breath below the strong support at 18.

EBIX - daily chart

EBIX - weekly chart

Monday, November 8, 2010

EBIX earnings report, tomorrow November 9, 2010 at 11:00 A.M. EST

EBIX has had a bit of a wild ride since my October 31 posting. This ride provided for nice low entry points on November 2. On that day a bullish Hammer candlestick was generated. Since then EBIC has been on its way up in expectance of tomorrow’s earnings report. Volume is up today while the stock jiggles around 26, most likely forming a indecisive Doji star. If you have already bought EBIX and are on the plus side, you might secure your profits with a tight stop a bit below 25.50. Otherwise, if you like this stock2own, you might have a chance to enter tomorrow slightly above the 26.36 high of Oct. 28, in case that earnings turn out positive (Conference call: Tuesday November 9, 2010 at 11:00 A.M. EST).