XFMedia made the push up today on 3x average volume. That would have been an excellent sign if it finished up from its open, but it actually reversed from the open to the close. There have been two probes to test the $10.50 high level established back in June of this year. The good news is that it is safely above the 200 ema and it closed 5% above yesterdays high. As I mentioned earlier today, the company has settled down since it appointed 5 new directors, and can now get onto business following the sell of Glass Lewis - they have been one big pain in the ass to XFML since it was purchased. In addition, the company's early repurchase of 50 million shares (it IPOed in early March) gives me nothing but confidence to hold on as a speculative play. I currently have 1/2 position and will wait to break the $10.50 barrier before buying in with an additional 25% holding. I am currently up 24.35% on my initial position.
The chart below shows the break of established downtrend on solid volume and the following retracement on lower volume to test what is now support. The end result was a successful test and then rocket up. The expanding volume bars at the bottom of the graph tell the story as well. We are looking at rising price supported by expanding volume, which makes for enough energy to assist in the eventual break of the $105.0 level. The bad news that discounted the stock is out of the company and with big names in the Board, there is no reason not to have some speculative coin located here.
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