Should you take this $CALL?

I took this $CALL because it broke out of the consolidation range last Friday.  I bought a starter position after it took out the opening range and then added after it was able to maintain above the opening range.

Take a look at the daily chart below:

CALL_daily

While Friday was an up day for $CALL, the pause here would be that the price action was hitting against the 79SMA and 89XMA at Friday close.  Noticed that both the 79 and 89 were lumped together on this resistance.  If price action could take out this double MAs resistance, price could rally hard since this one got a high short interest per Yahoo Finance:

Shares Short (as of Sep 30, 2013)3: 4.18M
Short Ratio (as of Sep 30, 2013)3: 22.20
Short % of Float (as of Sep 30, 2013)3: 26.60%

Below is the weekly chart:

CALL_weekly

Did you see how the weekly price is bouncing off the long-term support line?  Currently, even the weekly chart has a 15 SMA resistance against current price.  So, there exist a possible failure in the rally due to the weekly and daily resistances.  On the other hand, a breakout of these two time-frames resistance could mean a continued rally.

Fundamentally speaking, I use MagicJack myself so I know the benefit directly. I used to have Verizon land-line and the monthly charge to me was an average of $30+ per month.  Now,I pay less than $50 per year!  On top of that, I’ve the benefit of using the land-line number on my Android mobile phone by installing the MagicJack APP so that I can take or make call on my mobile phone on the go.

The convenience and the saving of of having MagicJack is fantastic to me; so I have to assume it applies to whomever use the service as well.  I can see there are other competition to MagicJack but I only know what I’m using.

Anyway, MagicJack expansion to oversees may be the next catalyst for the price rally.

In summary, it depends on how price action behave the coming week against the weekly and daily MAs resistances; if it break out higher, I may add more; and if it fails, I will probably bail out for small losses or small gain.

My 2 cents.



Categories: CALL

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