Interchange Corp (INCX)

Company

"Interchange Corporation utilizes proprietary search technologies to enable consumers to find and connect with businesses in seven countries and five languages. The company serves local and national U.S. Internet search markets with its ePilot™ search service and Local Direct™ search and advertising platform, and the wireless U.S. local-search market with its recently released SMS LOCAL™ service (beta). Interchange's European subsidiary, Inspire Infrastructure, serves various European Internet, wireless and operator assisted local-search markets. Interchange generates revenues principally from paid-search advertising. Interchange specializes in local-search and recently acquired the Local.com domain name in order to develop a worldwide local-search destination site. The company plans to unite its various Internet and wireless local-search technologies under the Local.com brand, which is expected to be launched in the second half of 2005." (company website)

Buy

2-Jun-05. Interchange has been sliding since its December peak, and it is currently below the major trend line (sidebar - red line). However, it has broken the short-term trend line (sidebar - green line) with very heavy volume. So, the question is whether the last low was the bottom or if upward progress will stop when INCX tests the longer-term trend.

• Price momentum (PPO) — sharply up after languishing for several weeks
• Trend (ADX) — buying pressure (+DI) has crossed above selling pressure (-DI) and trend shows signs of slight strengthening
• Money flow (CMF) — quick reversal from negative to positive
• Relative strength (RSI) — sharply up over last two weeks

Sell

6-Jun-05. Selling INCX today was a mistake. I was only down 2% at the time and there is still a lot positive in the chart. But in my enthusiasm to clear out marginal holdings, I sold.