After its last appearance in this FSU section on 8/29/11 with an annotated graph under the headline, "Confirming Gain on +43% Above Average Volume", it powered higher to a new 52-week high with heavier volume backing its 8/30/11 gain. After triggering that confirming technical buy signal, it stalled. It has sputtered since its 8/03/11 gap up. The 3 latest quarterly comparisons through June '11 show sales revenues and earnings acceleration and the high-ranked Telecom Services - Cable/Satellite firm has a strong annual earnings history, satisfying the C and A criteria. One concern we have highlighted is the waning ownership by top-rated funds, falling from 421 in Mar '11 to 398 in June '11. Normally, increasing interest from top-rated funds is preferred with respect to the I criteria. Its Accumulation/Distribution rating of D- (see red circle) is down from a B- when it was shown in this FSU section on 8/08/11.
Higher trading in recent weeks created a batch of investors who own the stock at higher prices, termed "overhead supply", which is a source of resistance that might hinder its progress for the near term as those anxious sellers watch for an opportunity to unload shares. Meanwhile, the broader market (M criteria) also has flashed warning signs while slumping into the latest recognized market correction.
J 2 Global Communication (JCOM +$1.45 or +4.94% to $30.80) finished near the session high today for its best close of the year with a considerable gain with +43% above average volume. Little resistance remains due to overhead supply. Gains with slightly above average volume helped it rebound above its 50-day and 200-day moving average (DMA) lines, improving its outlook since its last appearance in this FSU section on 8/19/11 with an annotated graph under the headline, "Overhead Supply Acting as Source of Resistance". It has sputtered since its 8/03/11 gap up. The prompt rebound above those important moving averages helped its outlook.
Its color code was changed to yellow today after the solid gain which may be considered a confirming "buy signal" as it powered above the previously cited pivot point based on its 7/07/11 high ($29.31) following a "double bottom" type base. Although it had rallied to a new high and showed explosive potential, the subsequent slump was an indication that overhead supply was hindering its progress while the broader market (M criteria) also lacked upward momentum. The 3 latest quarterly comparisons through June '11 show sales revenues and earnings acceleration and the high-ranked Telecom Services - Cable/Satellite firm has a strong annual earnings history, satisfying the C and A criteria. One concern we have highlighted is the waning ownership by top-rated funds, falling from 421 in Mar '11 to 398 in June '11. Normally, increasing interest from top-rated funds is preferred with respect to the I criteria.
Its color code was changed to yellow in the 8/08/11 mid-day report with an annotated daily graph (read here) showing a pivot point based on its 7/07/11 high after a "double bottom" type base. Although it had rallied to a new high and showed explosive potential, the subsequent slump is an indication that many anxious sellers immediately wanted to head for the exit, rather than adding to the buying momentum and driving it even higher as it was breaking out. Technically, it has endured damaging distributional pressure after rising to challenge previously stubborn resistance in the $30 area. The many months it spent trading at higher levels is a source of resistance called "overhead supply" which may hinder its ability to rally for meaningful gains.
The 3 latest quarterly comparisons through June '11 show sales revenues and earnings acceleration and the high-ranked Telecom Services - Cable/Satellite firm has a strong annual earnings history, satisfying the C and A criteria. The weekly graph below is packed with a lot of additional data. One concern we have highlighted is the waning ownership by top-rated funds, falling from 421 in Mar '11 to 398 in June '11. Normally, increasing interest from top-rated funds is preferred with respect to the I criteria.
Technically JCOM has been enduring distributional pressure near previously stubborn resistance in the $30 area since gapping up on 8/03/11 from below its 50-day moving average (DMA) and 200 DMA lines. The 3 latest quarterly comparisons through June '11 show sales revenues and earnings acceleration and the high-ranked Telecom Services - Cable/Satellite firm has a strong annual earnings history, satisfying the C and A criteria. The weekly graph below is packed with a lot of additional data. One concern we have highlighted is the waning ownership by top-rated funds, falling from 420 in Mar '11 to 393 in June '11. Normally, increasing interest from top-rated funds is preferred with respect to the I criteria.