Play Pixelworks (PXLW) for Another Pop

Following its Q1 drop and subsequent retreat, Pixelworks is flashing a fresh set of buy signals

   
Play Pixelworks (PXLW) for Another Pop

Pixelworks (PXLW) — Pixelworks designs, develops and markets video and pixel-processing semiconductors and software for high-end digital video applications. Some of the company’s technology was showcased at the 2014 Consumer Electronics Show on Ultra-HD TVs.

On May 8, Pixelworks reported a Q1 loss of 4 cents, beating analysts’ estimates of a 7-cent loss, thus beating forecasts by 3 cents. Revenues of $13.5 million also topped the Street, which estimated sales of $13.1 million.

We first covered this speculative small-cap growth stock on Feb. 20 at $4.99, based on positive technical analysis from our new tool, Profit Scanner. Without this new technical analysis tool, I probably would have overlooked the bullish continuation diamonds shown on the chart.

Pixelworks’ stock popped to $9.05 on March 6 but succumbed to high-volume profit-taking and retreated to $4.68 last week. Since our buy point was at $5.50, hopefully some readers bought PXLW. The stock is under accumulation and is one of Benzinga’s Top Performers.

PXLW has closed the huge gap opened in March (a positive) and reversed from its 200-day moving average on May 8. On Wednesday, Pixelworks flashed a special CBR Buy signal as well as a new MACD buy. The stock should be bought at any time under $6 with a trading target of $8.50.

Note: Pixelworks is a highly speculative investment and not suitable for many investors with limited resources.

PXLW Buy 300x189 Play Pixelworks (PXLW) for Another Pop
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chart key Play Pixelworks (PXLW) for Another Pop


Article printed from InvestorPlace Media, http://investorplace.com/2014/05/pixelworks-pxlw-stock-trade/.

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