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InterActive Corp (IACI) is experiencing technical difficulties in the after
hours. The stock closed out the day session at 27.03 and is now down around
$23.00 in evening session. What’s interesting about this stock is that
I have a very critical support zone from 23 to 24. Not only is this zone critical,
but I have a Bullish Butterfly pattern completing into this support zone. So,
I’ll ignore the after hours session, and look to see where price firms
up in tomorrow’s session. If we can close above this zone on Tuesday,
I’m very interesting in taking a long position in the stock with a stop
at the lower of…the low made in Tuesday’s session or below this
support zone listed on the daily chart below. Of course the flipside to this
story is if we are unable to get a close above this zone…I just scrap
the long set up and shift gears to looking to short rallies. That scenario is a couple of steps away though. For now, I’m focused on the support
zone and bullish pattern.
Housekeeping
Last week we had a nice little set up in Stryker (SYK) as it was developing.
The stock hit our first objective zone where I typically look to take profits
on half the position and trail up the stop. My stop on this one would now be
at 45.90 with my final objective up between 51 and 53.
Tear ‘em up!
Derrik