Infocrossing (IFOX)

Company

"Infocrossing, Inc. is a leader in Selective IT Outsourcing Solutions. Our services are designed to provide customers with the ability to strategically outsource non-core IT operations and IT-driven business processes to reduce costs and improve performance – without the risk or loss of control associated with wholesale outsourcing engagements." (company website)

Buy

18-Aug-06. Infocrossing peaked in April and then pulled back. It is now consolidating above the $11 level (see sidebar). The 50-day moving average has leveled off and just turned up.

• Price momentum (PPO) — gaining
• Trend (ADX) — strengthening again after weakening slightly
• Money flow (CMF) — flowing out, but improving
• Relative strength (RSI) — slightly above neutral
• Volume — very high volume price jump after earnings report

IFOX has one of those charts with long tails on the candlesticks; that is, it is subject to a lot of intra-day volatility. Nevertheless the trend is up, if I can keep my courage up.

Sell

28-Aug-06. Infocrossing is running out of steam at the $12 level. It is way over-bought (StochRSI) and volumes have been weak. Although it is still gaining momentum (PPO) and the trend (ADX) is strong, it has been stretching out the upper Bollinger band for a week, and I sense either a consolidation or a pull-back in the works. So, I'll take respectable profits and buy back in after the correction— possibly.