Kendle International (KNDL)

Company. Kendle is a "global provider of quality clinical research and development services for the pharmaceutical and biotechnology industries. Services include clinical trial management, clinical data management, statistical analysis, medical writing, regulatory/validation consulting and representation and medical communications services for professional associations and pharmaceutical companies." (company website)

Buy. This started out as a good idea. KNDL hit bottom at $3.05 in March and began climbing. In May the stock took a rest and fell back to $4.11 before starting to move sharply upward again. At the begining of June it passed the $5.00 level, and the ADX and Chaikin oscillator indicators passed their thresholds (20 and zero, respectively). I bought when it made a further jump past $5.50.

After another spectacular surge to $6.70, the stock settled down to trade in a narrow range around $6. So far so good.

In July, the stock made another big surge to $7 on very heavy volume. I expected another period of consolidation, and KNDL settled just above $6.25 with exceptionally low volume. I was quite content to hold there in anticipation of another leg up.

Sell. Yesterday the KNDL chart formed an bearish engulfing candle signal (the big red candle). However, the signal was not accompanied by the typical heavy volume. I remained vigilant, but unconcerned.

Date	Volume
Wed, 16 Jul	25,000
Thur, 17 Jul	11,000
Fri, 18 Jul	5,100
Mon, 21 Jul	3,500
Tue, 22 Jul	2,400

Toward the end of today's trading session, the price started to drop well below the apparent line of support at $6.25 and I decided to sell, putting in a limit order for $6.00. Unfortunately the breakdown was quick, and only about three-fourths of my shares sold at that price.

As soon as I saw the price start to fall, the decision to sell was easy. The chart picture had been weakening steadily, and the precipitous drop-off in volume led me to expect a clear break-out or a break-down.