Dot Hill Systems (HILL)

Company

"Dot Hill Systems Corp. is a leader in the innovative design and delivery of storage networking solutions to channel partners worldwide. Its products include the SANnet(R) II family of storage systems, the RIO Xtreme(TM) storage solutions, SANscape(R) storage management software, SANpath(R) storage networking software and professional training, support and service. The SANnet II family of storage solutions provides industry leading 99.9998+ percent uptime in compact, rack-optimized packages. SANnet II brings enterprise-class features to open systems platforms and small and medium businesses (SMB). The common modular architecture of the SANnet II family provides seamless scalability for future growth within network storage and direct attached environments." (company website)

Buy

24-May-05. Dot Hill Systems has been trending down for the past twelve months. It looks like HILL may have bottomed and begun to claw its way back up.

• Price momentum (PPO) — after a long decline, momentum is picking up
• Trend (ADX) — selling pressure (-DI) has been falling steadily, and buying pressure (+DI) has now picked up and crossed above it.
• Money flow (CMF) — while still negative, money flow is strengthening
• Relative strength (RSI) — higher now than any time in past two months

Sell

6-Jun-05. I took comfort Friday in the recovery from the slam on Thursday. It opened higher again today, but then immediately began pulling back. I sold because that peak last week now looks more like a failed test of the long-term downtrend.