Ixia (XXIA)

Company

"Ixia is a leading provider of multiport traffic generation, performance analysis, and conformance validation systems. These systems are used to accurately and reliably assess the data communications equipment that make up the high-speed, sophisticated networks of today." (company website)

Buy

24-Aug-06. I added to my position. XXIA reached a new peak then pulled back to the 1-month average. In the best-case scenario, XXIA has reversed and will break above the trend line. Next-best case is that it will move up enough to test resistance, allowing me to make some money.

• Price momentum (PPO) — accelerated since previous buy, although leveling off
• Trend (ADX) — above the threshhold (20), but weakening, so this bears watching carefully
• Money flow (CMF) — still flowing in, although not as strongly
• Relative strength (RSI) — appears to be strengthening still
• Volume — higher-than-normal volume on latest peak

Sell

3-Oct-06. Early buy, late loss. My stop-loss order was trigger this morning when XXIA traded at $8.66, and it is clear from hindsight that I should have cut the loss much sooner, say around the time I bought a second lot! Even by then weakness was showing, and it became only more visible after that. The breakthrough from the trend that can be seen in the 2-year chart simply didn't happen.