Peerless Systems (PRLS)

Company

"Peerless is an imaging and network technologies pioneer, with 20 years experience in providing flexible imaging solutions to manufacturers of color, monochrome and multifunction office products and digital appliances. Peerless solutions are designed to help OEMs develop products faster, shorten time-to-market, and differentiate products for greater competitiveness." (company website)

Buy

17-Oct-05. After ending down a bit last week, PRLS has apparently decided to zoom ahead again. I added to my position, since I now have a cushion of 14% on the first lot, and the chart still looks strong.

• Price momentum (PPO) — accelerating again
• Trend (ADX) — buying pressure (+DI) picking up
• Money flow (CMF) — strongly positive and stable
• Relative strength (RSI) — increasing
• Volume — heavier than normal in today's session

Sell

21-Oct-05. I bailed out of Peerless late in today's session. A new high was established yesterday, but the session opened and ended at the same place, often a sign of indecision. Today PRLS opened up a bit but then headed down. I decided to lock in modest profits.

The signs in the chart are still strong, but it has been riding the upper Bollinger band to quite a distance above the 50-day moving average. I think today's sell-off may be largely "profit-taking" but may also be the start of a natural correction to pull back closer to the average.