The Play Of The Day
10-04-99 07:20 EST.
Stock Jock-October 5, 1999 FOMC meeting decision. No rate hike. No bias to tighten.
More to come ... on this tomorrow
Good Morning Stock Fans!
Today's Play of the Day is: ICG Communications (NASDAQ:ICGX)
About: ICG Communications, Inc. (NASDAQ:ICGX)
With headquarters in Englewood, Colo., ICG Communications, Inc.
(NASDAQ: ICGX) is a competitive telecommunications provider of high-quality, integrated communications solutions. ICG, Inc. (NASDAQ:ICGX) offers local, long distance and enhanced telephony, and data communications to small-and medium-sized businesses in California, Colorado, Ohio, Texas, and the Southeastern United States. The company also provides high-speed data network capabilities and services to Internet service providers throughout the United States,
It was just 10 trading days ago on September 20, 1999, that ICG Communications (NASDAQ:ICGX) traded as high as $23.00 a share. It then sold down over the next 7 trading days to reach a low of $15.00 a share intra-day on September 28, 1999. It would then find support there as volume increased and it bounced up and over $15.25 a share its 200 day low to close at $16.00 a share. The following 2 trading days September 29, and 30, 1999 would see shares of (NASDAQ:ICGX) trade sideways in a range of $17.00 to $15.6250 to equal its average 30 day volume of 542,500 a share.
However this past Friday, October 1, 1999 ICG Communications (NASDAQ:ICGX) saw huge volume of over 1. 3 million shares almost 3 times its 30 day average volume of 616,000 shares as it would open at $16.00 even then bounce nicely off of $15.8750 avoiding it low a day earlier of $15.6250 and go up to as high as $17.25 before it would then accumulate shares the rest of the day in what could very well be in anticipation of a move to the upside to finally close at $16.25.
Examining the previous information closer tells me that (NASDAQ:ICGX) has great support at $15.00 even and also looks to have a perfect RISK Vs REWARD ratio of 4.00 to the up side and only $1.25 to the low side. With such a ratio I feel as if the recent increase in volume as well as trading range represents a perfect opportunity to get in on what certainly looks to be a move to the upside on shares of (NASDAQ:ICGX) The fact that on Friday it held a good portion of it gains as it traded numerous blocks of shares tells me that it is being accumulated at current prices and looks to move up from here. It maybe on news coming or oversold stock price. Looking at (NASDAQ:ICGX) trading behavior this past Friday, October 1, 1999, indicates it should go higher from here.
Buy Area: $15.8750- $16.50
Sell Stop: $14.93750
TARGET $19.00- $23.00 (1 to 5 days to get to $19.00. If (NASDAQ:ICGX) gets through it next area of resistance it should run to $23.00.
"RUN THE OPTIONS!"
There is action in (NASDAQ:ICGX) Option Calls October 1999 $17.50 and $20.00
(Symbol:QIG-JW) for the October 1999 $17.50 Option Calls
Symbol:QIG-JW) for the $20.00 for the October 1999 $20.00 Option Calls.
BONUS PLAY: Ancor Communications (NASDAQ:ANCR)
(NASDAQ:ANCR) on no news went up over $4.00 a share this past Thursday, September 30, 1999, to reach a high of $25.68750 on explosive volume of 3,197,000 shares. That type of volume was almost triple its 30 day average volume of 1,357,900 shares.
However this past Friday, October 1, 1999, was the day that still on no news shares of (NASDAQ:ANCR) proved in its trading behavior that it could have something brewing that will benefit it shares in the not to distant future as it would perform a perfect retrace on much less volume. Friday, October 1, 1999, shares of (NASDAQ:ANCR) would sell down on almost a third less volume as a day earlier. At one point shares of (NASDAQ:ANCR) went as low as $22.25 intra-day down $2.00 a share on much less volume. However into the close (NASDAQ:ANCR) again exploded with increased volume to go back up and almost finish the day where it started, down only $0.25 to close at $24.00 even.
With its the retrace completed I look for shares of (NASDAQ:ANCR) to open today and go up right from there as it certainly would appear this stock has $30.00 plus in mind in the coming days.
Buy Area: $23.75-$24.50
Sell Stop: $22.00 even
TARGET: $27.1250 - $29.3750
"RUN THE OPTIONS!"
Another way to play what should be a nice move to the upside is (NASDAQ:ANCR) $30.00 October 1999 Call Options (Symbol:CAU-JF)
STOCK TO WATCH eFAX (NASDAQ:EFAX)
(NASDAQ:EFAX) has been hammered off its April 1999 highs of $32.00 plus a share to go as low as $7.06250 a share on September 24, 1999, before it showed support and on Friday find its way back up to get as high as $8.00.
I am looking for shares of (NASDAQ:EFAX) to go up today and into tomorrow as the Chairman and CEO of eFAX (NASDAQ:EFAX) will be featured in depth on CNBC's Power Lunch on Tuesday, October 5, 1999. That should be all this stock needs to bring in buyers as it should find double digits again on CNBC featuring the company on Power Lunch tomorrow.
Buy Are: Off the open today
Sell Stop: $7.00
TARGET: $10.00 plus (1 to 2 trading days)
RECENT IPO WATCH: Garden.com (NASDAQ:GDEN)
Stock Fans! Keep on eye on shares of (NASDAQ:GDEN) today as this stock has been inching up lately both in volume and in share price ahead of its quite period ending soon. It looks to want to go up to $22.50 over the next few trading days perhaps higher and perhaps sooner!
More to come...
Have a great day!