Spurred by a global recovery a need for products used to source, calculate, join, control or communicate direct current (DC) or pulsed electrical signals is soaring.
New orders from Asia, the Americas, and Europe will rocket this corporation back up the charts.
Keithley Instruments (KEI) looks like a scorching buy right now for Monday, June 21, 2010 from both a fundamental and technical standpoint.
At a elementary level, the corporation trades at a forward PE of 11.5. If you study the PE on the Technology industry as a whole, most companies are trading at a PE of 17. But it gets even better!
Sales grew by 25% the most recent quarter YOY.
I too dig the fact that Keithley Instruments (KEI) a short time ago raised the dividend. Thus now we have a situation of a substantial increase in sales and the business raising the dividend as a consequence.
On the weekly stock chart there's a giant Cup and Handle pattern being created. A cup has already completed its formation and the downward move of the handle seems to be completed as with the daily chart we see a Bullish Flag break.
One thing that will really jump out at you with reference to the weekly chart is the increasing volume. Awesome! The amazing rising volume suggests that professional traders have recently awoke to this stock.
The daily chart does not have an alligator cross still of the MAs but the hourly chart does. My bet is that the daily chart will eventually show this cross over the next few days and weeks. Yet the daily chart does demonstrate something exceptionally bullish, a Bullish Flag breakout. This Bullish Flag breakout is one of the most excellent money making chart patterns you will come across since you are hardly ever chasing a stock but instead purchasing at a discount. In this case, I gamble the Bullish Flag break suggests we are at the bottom of the handle on the bigger Cup and Handle formation on the weekly chart.
The hourly chart has the alligator opening his chops on the moving average lines. That is a exceedingly bullish formation I especially like to see. On the other hand you should keep your eye on the diminishing volume. The volume has dropped into the upward move. I gamble that some of this drop in volume can be contributed to the options expiration Friday effect where volume either falls strangely low, or the session is incredibly volatile. Those seem to be the two actions that take place most frequently on an expiration Friday. Nonetheless, if you intend on buying Monday morning like I do, you will need to implement caution on your entry.
My idea for Monday at market open is to look for big volume and buying. If I see it, I'm immediately in and I'll let the chips fall where they may. If the Monday at market open volume is neutral and I see selling, I'll pull up a real time minute by minute chart and time my entry after the sell off has finished.
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