Chart to Watch - MLNX

Posted on by The INO.com Team

We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.

Today he is going to take a look at the technical picture of Mellanox Technologies, Ltd. (MLNX).

I hope you are having a GREAT week !

This week let's take a look at MLNX which is a very interesting chart right now.

MLNX looks to have made a base, the breakout of the base, a test of the base, and has probably already started the next bull swing higher, which has the possibility of being a big move.

I hate to sound like a broken record, but I keep mentioning that MarketClub will often put in green Trade Triangles just as markets are breaking out to the upside of chart pattern pivot points.

If MLNX does trade higher, this will probably be another example of that, as MarketClub will go on a green monthly Trade Triangle right as MLNX is taking out the last pivot high.

Another interesting thing on this chart is how the low came in right on the open of a big gap down, in which the buyers pushed the stock up off the low on high volume.

That means that there was strong demand for the stock at that price and that was probably a major low for MLNX, which is another reason to think MLNX will continue higher from here.

Like I always like to point out, there are no sure things, but with that being said, MLNX looks to be possibly on the verge of a huge move higher from here, which of course, makes this a Chart to Watch !!!

Thanks,
Jim Robinson
Profit Trading.com

3 thoughts on “Chart to Watch - MLNX”

  1. Does the following from Barchart affect your judgement?

    Mellanox technologies, Ltd., a fabless semiconductor company, produces and supplies interconnect products for computing, storage, and communication applications in the computing, Web 2.0, storage, financial services, database, and cloud markets.

    The Complaint alleges that throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose that statements regarding the purportedly strong and consistent demand for the Company's product offerings concealed what Mellanox knew of the advanced development pace of Intel's own InfiniBand product offerings and the negative impact that would have on both Mellanox's sales growth and Intel's demand for Mellanox product offerings. Defendants also concealed that they were receiving a deluge of customer complaints about Mellanox's own Infini and product offerings during the Class Period, and the adverse impact that was having on sales demand and costs. As a result, Mellanox's stock traded at artificially inflated prices during the Class Period, trading above $120 per share in intraday trading by September 6, 2012, allowing several insiders to cash out by selling millions of dollars of Mellanox stock at fraud-inflated prices.

    However, through a series of partial disclosures made between September 7, 2012 and January 3, 2013, the market learned that the Company's business was not as Defendants had portrayed throughout the Class Period, causing significant declines in the price of Mellanox stock.

    The Pomerantz Firm, with offices in New York, Chicago, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See http://www.pomerantzlaw.com.

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