FIO is at an interesting set up. On its weekly chart, it pushed off of the 34 level. That level appeared to be a head-and-shoulder resistance.
With the push back, FIO is now approaching support levels. On the weekly chart they are shown with the 20 and 32 SMA. On the daily chart the supports are near current levels and low/mid 27.
It can always go lower, with support near mid 22, if the company does not perform as expected. But FIO is a back-end play on big data, cloud computing and the increased mobile traffic via the changing dynamic within data centers and servers to facilitate the rapidly growing technology segments. All these segments require better and efficient data center infrastructure, to facilitate increased processing capabilities. FIO allows for this. They took a hit on margins last quarter because they had increased client demands that caused them to add more costs into the quarter. (A supply issue I hope they were smart enough to work out this go around.
If FIO begins to reflect the growth of cloud, big data and mobile traffic, and convert their offerings into profitability, FIO should breakout from its weekly head-and-shoulder pattern.
Currently I have an initial position at current levels. Will add at the 68SMA. Then wait and see how they do going into the quarterly report.
Just an FYI... until FIO begins to consistently make profits, this is a speculation
play. High risk/high reward
. If anyone does not like high volatility, don't play it.
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