BSQUARE Corp. (BSQR)

Company

BSQR 1-year chart BSQR 1-year chart

"BSQUARE is a software solution provider to the global embedded device community. Committed to delivering quality, lowering project risk and time to market, our teams collaborate with smart device makers at any stage in their device development." (company website)

BSQR 6-month chart
BSQR 6-month chart

Buy

BSQR has been rising sharply since reversing its downtrend last December. It has once again touched up with the rising 50-day moving average.

  • Price momentum (PPO) — down sharply after pulling back from latest 52-week high
  • Relative strength (RSI) — just below neutral
  • Trend (ADX) — strong, with buying pressure (+DI) having just touched up with selling pressure (-DI)
  • Volume — fairly constant

Based on technical analysis, MarketEdge calls BSQR a "buy" in a "weak upward trend" and at a "good entry point" because it is "oversold."

Sell

gain Bottom line
11%

I decided to take profits today, while they were there for the taking. BSQR has been weakening a bit: the price oscillator (PPO), relative strength (RSI), and trend strength (ADX) are all trending down. There is a possibility that a double-top is forming in the chart. If I hang on long enough to confirm that, I will have lost almost all my gain.

Although both moving averages (50-day and 200-day) are rising, BSQR is up 130% YTD. That could easily be a major correction waiting to happen. To the sidelines I will go. The picture may be much clearer after earnings are reported the week of 8-August.