Home > Stock Market Analysis > SZYM: Technicals Turning Bullish

SZYM: Technicals Turning Bullish

A few weeks ago I mentioned Solazyme to be an interesting play.  Indeed, as of 2/11/13, SZYM is up around 14% since I posted on 1/26/13.  The technicals have since turned slightly bullish and the price has now been hovering at a key level of resistance at $8.50.  Check out the chart below:

SZYM Weekly, freestockcharts.com

SZYM Weekly, freestockcharts.com

The green arrows indicate bullish technicals and would have been a great time to enter the stock.  The price price breached the 20-day Moving Average as shown by the top green arrow.  The lower green arrow shows a bullish MACD.

If the bulls can break this key resistance here, we’re heading up to major resistance at around $9.60.  One caveat here is if we cannot breach the $8.50 level, we’ll head back down to the 20-day moving average, around $7.80, which wouldn’t be so bad as I would think some consolidation is in order before a major move up to $9.60.

Keep an eye out for some volatility here, but I’m liking how SZYM is setting up for 2013.

It should be noted that all transactions described on this blog were performed on the Investopedia Stock Simulator and not in the real stock market.  I have no actual positions in any stocks mentioned nor will I be initiating any actual positions in the next 6 months.  Furthermore, the information on this blog should not be considered financial advice.  The main purpose of the blog is to educate its readership, myself included, about concepts and ideas that were previously unknown to me.

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  1. February 11, 2013 at 8:00 pm

    Hi! I’ve been looking at your stocks and following your website. You are an amazing investor and if your were to go into the real stock market you could probably make a fortune. I need help with a stock investing game (for school). I am trying different methods to win this game. the website is http://www.stockmarketgame.org. and the rules are here: http://www.stockmarketgame.org/cgi-bin/haipage/page.html?tpl=Administration/game/content_rules. I would be so pleased if you could get back to me and help me with any advice/solutions.

    Thanks,
    Ross

    Read more: http://www.investopedia.com/simulator/Messages/Messages.aspx?folder=sent_items#ixzz2KceKgEjg

    • February 11, 2013 at 8:19 pm

      Thank you for the kind words! I’m not so sure if I’d make a fortune, it’s a bit easier to gamble on near-term options when it’s not my own capital.

      I’m not familiar with the Stock Market Game website, but at first glance, it seems like that site is a great way to learn about the stock market.
      Unfortunately, I cannot view the link for your game’s rules since I’m not a part of the game. I imagine the rules are somewhat similar to Investopedia? However, it’s difficult to give “solutions” to the stock market, the markets are incredibly fickle. Sometimes you think you have a good feel for the direction the market is heading and the next day it completely flips on you.

      My advice for this stock market game would be the same as any approach to the markets: take your time to research companies, make sure they are poised to generate profits and/or issue bullish guidance around their earnings call, and monitor their charts to determine entry and exit points.

      One question I have for you is: what is your time frame for this game? Is your timeframe the end of the school year? Is your timeframe the end of 2013? It may seem subtle, but considering your target date is crucial to managing your risk profile. That is, how much risk are you willing to take on for a quick gain? My approach is relatively long-term, as in 5-10 years. If I were to invest in the actual stock market, I’d pick high growth/high risk stocks. Because I’m relatively young, my timeframe is long term, I’m okay with taking a price hit here or there in the next few years, because I’ll have plenty of time to make it up. When talking about the stock market, 5-10 years is essentially eons.

      • Anonymous
        February 12, 2013 at 10:20 am

        The game ends in April but I have to but 3 company stock of 100 stocks each by march. I cannot by any stock under 5 dollars and I cannot sell the 3 company stock but I can by other stocks to make profit. I can give you my login for the game to view the rules if you would like. Any advice you give me will be a bonus because I am new to the market. I bought szym and I’ve only lost 9 dollars.

  2. Anonymous
    February 12, 2013 at 10:21 am

    The game ends in April but I have to but 3 company stock of 100 stocks each by march. I cannot by any stock under 5 dollars and I cannot sell the 3 company stock but I can by other stocks to make profit. I can give you my login for the game to view the rules if you would like. Any advice you give me will be a bonus because I am new to the market. I bought szym and I’ve only lost 9 dollars.

    • PiShaped
      February 12, 2013 at 11:00 am

      It’s always tough to make stock recommendations, because if they tank, that recommendation is on me!
      But I’ll try: Achillion (ACHN) and Alnylam (ALNY). I also like Home Depot (HD) as home improvements have been ramping up lately with a (very slightly) recovering economy. Be careful about the broader markets, however, keep an eye on the S&P 500, we _may_ be heading for a retracement if we cannot break past these multi-year highs at around $1518.

      This might be a good thing to teach you to watch the broader markets, so just monitor the ETF(Exchange Traded Fund) that mirrors the S&P, ticker symbol SPY. SPY is essentially the S&P 500 divided by 10. I think it’s easy to forget that you’re not just buying into the stock itself, but the broader markets. When they tank, there’s a good chance the individual stock you’re holding will tank. Because we’re at multi-year highs, there may be some profit taking, and some selling pressure on some of these stocks. So just keep an eye out.

      • Anonymous
        February 12, 2013 at 11:04 am

        OK thanks any advice just keep it coming this is helping me a lot and I was looking at shorts too

  3. Anonymous
    February 12, 2013 at 10:42 am

    No, seriously. This guy is right, you are a genius. I’m a novice and am playing on investopedia. I love reading your posts. Keep up the good work!!!

    -Austin

    • PiShaped
      February 12, 2013 at 11:04 am

      Honestly, thank you for your kind words! I don’t think I’m much of a genius, lucky for the most part. I’m confident you’ll get good at placing yourself in the right position at the right time. It’s all about gaining experience reading the markets, researching companies, then seeing how they perform in the market. It takes time, but once you get the hang of it, it kind of flows from there. I’m certainly nowhere at the level I’d like to be. But that’s the fun of it, learning how to get there!

      • PiShaped
        February 12, 2013 at 11:06 am

        Sorry! I didn’t realize I wasn’t signed in!

      • Anonymous
        February 12, 2013 at 11:08 am

        It seems like you are doing an amazing job reading the markets and creating patterns. If you have suggestions I am open to any help

        -Ross

      • Anonymous
        February 12, 2013 at 12:53 pm

        You’re an inspiration! Do you trade for a living?
        -Austin

  4. ubahars
    February 12, 2013 at 11:14 am

    Im going to invest in the companies you reccommened me. If there is more just post them on here and i will keep up or email me at ubahars@yahoo.com

  5. February 12, 2013 at 2:14 pm

    Anonymous :

    It seems like you are doing an amazing job reading the markets and creating patterns. If you have suggestions I am open to any help

    -Ross

    Thank you, but I do not create the patterns, only elucidate the patterns that are already there!
    The best suggestion I can give is to start forming your opinion about some stocks. Start looking into your favorite companies more deeply. Do you watch Netflix a lot? Maybe check out NFLX’s financial statements, how has their growth been year over year? Do you think they are a game changer and here to stay or do you think the behemoths of the movie/tv industry will edge them out?

    I admit, sometimes it’s overwhelming to look at the entire stock market. So I think it helps to zero in on a particular industry sector. For me, it’s biotech. Maybe it’s something else for you. Do you have a particularly favorite industry? Are you a techy – Delve into FB, CSCO, AMD, AAPL, etc. Are you a car fanatic? Look into F, or maybe even CAR, they just bought out Zipcar, do you think that was a good move?

    If you’re into technical analysis, I like freestockcharts.com, you set up a free account, add a bunch of stock tickers and then you can draw all over the charts. I kind of hate those line stock charts that you get when you google search a stock ticker, you can’t really see open/closing prices nor can you see the highs and lows of the timeframe. With freestockcharts, you can change the chart type all you want and draw trendlines, bollinger bands, and fibonacci levels to your hearts content. Doing is the best way to learn!

  6. February 12, 2013 at 2:17 pm

    Anonymous :

    You’re an inspiration! Do you trade for a living?
    -Austin

    Unfortunately, I don’t trade for a living, although I kind of wished I did. I don’t have the startup capital at the moment to just toss around in the stock market. I’d like to set up a fund at some point soon, though, but I still have some experience to gain.

    • February 12, 2013 at 2:48 pm

      Thank i will remmeber what you said and im like biotech, cars, and tech things.

  7. Anonymous
    February 13, 2013 at 4:20 pm

    Nice take out on the Apple put. I’m riding on a 465 call in hopes!! It’d be nice to see 470+ before Friday close.
    -Austin

    • February 14, 2013 at 10:10 am

      Careful with the calls here, aapl hasn’t been able to break through a major declining trendline from the all-time highs at 9/12/12, and the highs at 12/3/12 and 1/2/13, and has failed to break through this week. I think this week people were hoping for some sort of announcement about a dividend or some concession to David Einhorn about what they’re doing with all that cash, but all they got was Cook saying that it was a “Silly Sideshow”. Not the best way to please your shareholders, Tim. Anyhow, I’d be wary about holding a call here unless they come out with some innovative Apple iWatch, or announce some substantial stock buyback program as an impetus for breaking through this declining trendline.

      • February 14, 2013 at 10:13 am

        Unfortunately, I see 450 before I see 470, but of course I could be wrong 😉

  8. Anonymous
    February 14, 2013 at 10:16 am

    Broke even on the call today. Good call 😉
    -Austin

    • February 14, 2013 at 10:19 am

      You may be right, though. If you haven’t sold it, hold on to it until aapl reaches 464. If it breaks 464, it’s heading down, but you might be right that we’ll see 470, but I don’t think it’ll hold there.

      • ubahars
        February 14, 2013 at 12:04 pm

        Did anyone see that warren buffet buy?! Man, that’s would have been such a good call

  9. Anonymous
    February 14, 2013 at 12:38 pm

    Ouch. Could have made a couple if I suck in till now!! 🙂
    -Austin

    • February 14, 2013 at 1:02 pm

      I’m sorry, man, bad call on my part. Like I said, I’m no genius, the key is to make a lot when you’re right and only lose a little when you’re wrong.

  10. Anonymous
    February 14, 2013 at 1:05 pm

    Pfft no worries at all. On my part, I should have known more about what I was investing in. I consider myself a gambler at this point. A work in progress though. Maybe when my portfolio looks like your I’ll be ready to invest real capital. Keep up the good work!
    -Austin

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