Radiant Systems

RADS

Company. "Radiant Systems provides innovative store technology for the hospitality, petroleum and convenience store, and cinema industries. Radiant's point-of-sale, self-service kiosk, and back-office technology enables operators to drive topline growth and improve bottom-line performance." (company website)

Buy. Radiant Systems popped up in a screen for bullish breakouts with big volumes. RADS bottomed in August and is now making up ground lost in the past twelve months. It has now matched the peak of a failed recovery at the end of March (see sidebar, green line). RADS tested support at $5 earlier this month and now looks to have broken out of the mid-$5 level. Money has started flowing into the stock (CMF) and buying pressure (green +DI line) has picked up.

Sell. RADS sold as a result of a protective stop-loss order that I placed last week. RADS opened down again this morning and then traded much, much lower before recovering later in the session to end back above what I had originally paid.

It remains to be seen if the last two days were just profit taking or the start of a correction. The trend has weakened (black ADX line) and selling pressure (-DI) are about to cross above buying pressure (+DI). Stochastic RSI indicates the stock is oversold.

I considered buying back in when I saw RADS going back up but thought better of it: I'm not sure how to read this chart and I have a lot of other positions.