NEW BULLISH Plays
Fuel Systems Solutions, Inc. - FSYS - close: 18.46 change: +0.30
Stop Loss: 17.65
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Why We Like It:
FSYS makes alternative fuel components and systems. You could definitely argue that this stock's long-term trend is bearish with a large pattern of lower lows and lower highs. However, on a short-term basis it looks like traders might be able to catch a bounce back toward the $20.00-21.00 zone.
I am suggesting small bullish positions at the open tomorrow morning but only if both FSYS and the S&P 500 index open positive. We want to keep our position size small to limit our risk. Volume on the recent bounce hasn't been that inspiring but that doesn't mean the rebound won't continue.
We will try and liit our risk with a stop loss at $17.65. Our exit target is $20.50.
*see Entry Details above* (small positions)
Suggested Position: buy FSYS stock @ the open
- or -
buy the 2012Jan $20 call (FSYS1221A20) ask $0.90
Entry on December xx at $ xx.xx
Earnings Date 03/05/12 (unconfirmed)
Average Daily Volume = 282 thousand
Listed on December 06, 2011