Bookkeeping: Adding to Atheros Communication (ATHR)

By IBTimes Staff Reporter | January 20 2010 10:03 AM

With the caveat that time is short, with an earnings report next week (the 25th) I am adding a 1% exposure in the low $35s to Atheros Communication (ATHR) as this is my favorite chart set up - a chart in excellent uptrend which has pulled back slowly to a first level support level. (20 day moving average)

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The inability to make a new intermediate high go forward (if and when) would be an inssue - but we also have the issue of earnings. In normal times I'd simply place as top loss somewhere just under $34 to protect the recent addition, but we'll be cutting back - if this new part of the trade works or not - ahead of earnings.

Either way, I'll place a stop loss for a good portion of the position below recent lows (just below $34) because if that level falters the stock could revisit the 50 day moving average in the lower $32s.

Long Atheros Communication in fund; no personal position