I’m joining Raul3 by buying a full-size position on $CREE today. I initially bought $CREE on the day of the gap-down; but when price was looking to cut below $60, I dumped 80% of my holding and wait. I’ve bought back more $CREE today because price has confirmed a support that I’m seeing in the chart.
Take a look at the weekly chart below:
The last pivot high was established in the week of 03/22/2013 at $55.66; today $CREE bounced off from the low of $55.75.
Below is another version of the weekly chart that shows the Fibonacci 38.2% retracement support at $55.61 going back to the low established in June of 2012.
Below daily chart shows $CREE is bouncing. Potentially, if price could close at current level without giving back the gain by the close, we may have a bullish harami in the making. Of course, price will need to take out the high of today next week to confirm this bullish bounce.
Now, take a look at the 5m intra-day chart below:
I like the fact that price action took out the upper-band of the 20 minutes opening range (grey area). I’m watching to make sure it doesn’t break down and take out the lower-band today. If it does, I may elect to put my stop below $55.60 at a GTC hard stop.
Good luck to all who has $CREE. I concur with Raul3 that the technology of LED will soon replace our obsolete fluorescent and candescent lighting simply because it saves electric and last much longer.
My 2 cents.