Volume by Price Bars Look: FNSR (by Leisa)

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I originally did a post, The Importance of Time Frames, on FNSR on my blog. I was considering it as a potential short due to weakness in that sector.   I thought this would have some short potential.  It looked toppy on a daily short term chart.  However, when I moved my time frame out, and I came up with this chart using three years and a weekly time frame.  Going through that process inspired the aforementioned post. 

Here's the chart, which has to my eye, a simply beautiful cup and handle formation.  There is also plenty of airspace above.  There is also the rocket fuel of a 25% short interest. That's generally too crowded for my taste.  As is my norm, I look at vital signs, and FNSR's look pretty decent.  You can conduct your own 10-point safety inspection in the span of less than 30 seconds by looking at FINVIZ's snapshot here.


Snap58
 

How this pattern plays out is dependent on the strength of the broader market.  I think that it is a decent long prospect.

Position:  Long FNSR Aug calls.

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