Harmonic (HLIT)

Company

"Harmonic Inc. is a leading provider of digital video, broadband optical networking and IP delivery systems to cable, satellite, telecom and broadcast network operators. Harmonic's open standards-based solutions for the headend through the last mile enable customers to develop new revenue sources and a competitive advantage by offering powerful interactive video, voice and data services such as video-on-demand, high definition digital television, telephony and Internet access." (company website)

Buy

20-Mar-06. Although my previous lot of HLIT is up only 4%, I decided to add to my position. The 50-day moving average recently crossed over the 200-day moving average, and HLIT just closed over the 20-day moving average after a pullback.

• Price momentum (PPO) — up sharply with last two days
• Trend (ADX) — trend is weak but buying pressure (+DI) is up sharply
• Money flow (CMF) — improving
• Relative strength (RSI) — up after a decline
• Volume — two days of price jumps on higher than normal volume last week

Sell

30-Mar-06. Harmonic made big moves this past week, and I think some consolidation is going to take place. Hence, I decided to sell and bank the profits on this lot and the other one. Signs of a pullback are there: flattening momentum (PPO), falling buying pressure (+DI), negative money flow (CMF), weakening relative strength (RSI, StochRSI). This seems like a good time to take profits and move to the sidelines.