My enthusiasm for UniPixel Inc. (NASDAQ:UNXL) hasn't exactly been veiled; I penned bullish comments on the stock back on July 10th and August 12th. Unfortunately, my enthusiasm hasn't borne fruit - UNXL is up a little since my initial call a month and a half ago, but we've yet to see the explosive bullish move I figured was on the way. BUT, that may be about to change... like, today.
If you're not familiar with the company, UniPixel makes tablet and smartphone touchscreens. And to be more specific, it makes superior touchscreens, in that they consume less power, and cost less to make. Clearly it's a leap forward for consumer technology companies, though given the length of time (and headache) it took for UNXL to come up with the technology, anything less than a breakthrough would have been disappointing.
The underlying corporate details are secondary at this point, however. More than anything, UNXL is a trade, and it's on the verge of becoming trade-worthy.
Even the last time I looked at UniPixel Inc. in early July we had already seen horizontal support verified right around $12.00. In fact, it was that support and the almost-cross above the 20-day moving average line (blue) that compelled me in the first place. Though it took a while - and took another retest of the floor at $12.00 - UNXL finally started to roll higher by early August. In fact, it had pushed its way above the 20-day and 50-day moving average line (purple) by the 12th, prodding my second bullish call on the stock.
As you can see, though shares have made a profitable move in the meantime, it wasn't a straight-line move; UNXL pulled back to retest that 20-day and 50-day moving averages a week and a half ago. It was that retest and subsequent snap-back that sealed the bullish deal in my view, especially seeing that the bullish volume behind that move was growing.
With all of that being said, there's just one more hurdle that needs to be cleared before the fireworks really start.... the 200-day moving average line (green) needs to be crossed.
The undertow is already bullish; it has been since early August. If we can just clear the 200-day average at $19.30 though, the pace should accelerate. It matters right now, because UniPixel Inc. shares are currently priced at $19.30, and rising. Today could be the day. In fact, while waiting for a clean break above the 200-day moving average line would be prudent, waiting may also leave too much money on the table. The gambler side of you may want to go ahead and dive in, based on how everything has materialized up to this point.
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