For all of you technical charters out there, what does today’s price gap up mean from a technical standpoint? Was a resistance level breached? If so, what would a technical trader do with this at this point?
This is more out of curiosity rather than anything I would personally consider actionable, other than letting out a huge sigh of relief.
Best,
–Kevin
I am by no means an expert, I just play one on TV. That said, I see nothing.
http://stockcharts.com/freecharts/gallery.html?infn
It is still below the 200dma and 50dma.
Finviz shows a downward channel that it has not broken through.
Watch for volume. We want to see the big boys picking up stock on above average volume on up days and low volume on down days.
Was that a bottom at $16.98? The next day had a good bounce on volume. Maybe that was Saul deploying is BOFI funds 
This board wants to invest in value and fundamentals focused around a 1YPEG. That being the case, scale in at these low levels. You could buy some now and just wait a week. If it retakes the 200dma and holds for a few days, buy a little more. We seem to be on a wave of 100G fiber upgrade for long haul, metro and data center and we believe INFN is going to surf that gnarly wave for a few years. If that is the case you don’t care too much about the chart. (Some people have the rule of never buying below the 200dma but ask Saul if doing that has hurt is returns)
Pete, thanks for that.
I did a little digging on my own on my Fidelity account and found a breakout would occur after the 19.30 resistance level is breached.
On another note, someone out there must have a high degree of confidence on where earnings are heading:
http://www.optionmonster.com/news/article.php?page=notable_o…
Nearing the halfway mark in today’s session, here are the individual equity names with unusual option activity on optionMONSTER’s ActionTracker data system.
Infinera (INFN): More than 4,200 November 18 calls were bought, mostly for $1.40, as traders looked for the fiber-optic stock to rally. INFN rose 6.78 percent to $18.89.
Best,
–Kevin
On another note, someone out there must have a high degree of confidence on where earnings are heading:
I have seen plenty of heavy pre-earnings buying that was totally wrong.
Good point of course. I’m sizing that up in relation to the other evidence and thinking those people may have connected the same dots. Then again, the dots could be wrong.
Best,
–Kevin