COOL - Majesco Entertainment (Ichimoku Cloud analysis included)

[TheStockDude]

COOL - Majestic Entertainment

I will first explain my initial interest in COOL and why I bought it in the first place. Then follow it up with the Ichimoku Cloud analysis to support the buy signals.



COOL has been basing for 3.5 years between $1.00 and $2.50. The last three months have shown a slight increase in volume with an increase in price which is what I initially look for. I really like the amount of insider buying that has been occurring over the past 2 years, but more importantly in the last 6 months as the price has been rising. I set my buy price at $1.75 which was crossed in early June.


The Ichimoku Cloud

***I have never used this technique to analyze a stock. I am applying the chart and indicators to a stock that I already own. The chart is attached to the post, or can be found at Ichimoku Trader - Ichimoku charts of shares & stock market indices (type COOL into the symbol look up box).


The Ichimoku Cloud provides Bullish and Bearish signals. The signals are either: Strong, Neutral, or Weak.

Strong Bullish signals occur above the Cloud
Neutral Bullish signals occur inside of the Cloud
Weak Bullish signals occur below the Cloud

Strong Bearish signals occur below the Cloud
Neutral Bearish signals occur inside of the Cloud
Weak Bearish signals occur above the Cloud

I will now go in to how each signals pertains to COOL. You must be looking at the Ichimoku Cloud chart to understand this. To save space (and time), please refer to the Ichimoku Cloud thread for descriptions of the terms: http://www.favstocks.com/forum/techn....html#post3579



June 1st ($1.49): Kumo (Cloud) Breakout – A Kumo Breakout occurs when the price leaves or crosses the cloud. This is a Bullish signal because the price goes upward through the top of the Kumo. (B on the chart)

June 2nd ($1.69): Senkou Span Cross - The Senkou Span Cross signal occurs when the Senkou Span A (1st leading line) crosses the Senkou Span B (2nd leading line). This is a Strong Bullish signal because Senkou Span A crosses from below to above Senkou Span B while the current price is above the cloud. (S on the chart)

July 22nd ($1.90): Kijun Sen Cross – The Kijun Sen Cross occurs when the price crosses the Kijun Sen (standard line). This is a Strong Bullish signal because the price crossed from below to above the Kijun Sen above the cloud. (K on the chart)

July 23rd ($2.09): Tenkan Send / Kijun Sen Cross – This cross occurs when the Tenkan Sen (turning line) crosses the Kijun Sen (standard line). This is a Strong Bullish signal because the Tenkan Sen crossed from below to above the Kijun Sen above the cloud. (T on the chart)

July 23rd ($2.09): Chikou Cross – This cross occurs when the Chikou Span (lagging line) crosses the price. This is a Strong Bullish signal because the Chikou Span crossed from below to above the price above the cloud. (C on the chart)



Each signal must be considered with respect to the overall chart. I do not believe one or two signals are enough to confirm the direction of a stock.

One observation from looking at the chart is that the price hops up every time it touches the top of the cloud. Almost like bouncing off the top to a new support level.

[Richie Rich]

Interesting.
Good explanation... Thanks