Genesis Microchip (GNSS)

Company

GNSS 2-month chart GNSS 2-month chart

"Founded in 1987, Genesis Microchip Inc. is the established leading supplier of display image processors in both the flat-panel TV and LCD monitor markets. The world‘s leading television and PC manufacturers rely on Genesis‘s award-winning, patented technologies and display controller solutions to produce visibly better and more vibrant images in their displays. Headquartered in Silicon Valley, California, Genesis operates on a global level to serve customers in their own countries with sales (link to sales page) and support centers in Taipei, Taiwan; Seoul, Korea; Shenzhen, China; Tokyo, Japan and Singapore. In addition to its administrative and development center in the Silicon Valley, the Company also maintains two development sites in Toronto, Canada and Bangalore, India." (company website)

GNSS 1-year chart
GNSS 1-year chart

Buy

In March, Genesys reversed a long downtrend and broke through the trend line. There has been dramatic improvement in the indicators that I pay attention to.

  • Price momentum (PPO) — picking up sharply
  • Trend (ADX) — strengthening, and buying pressure (+DI) increasing sharply
  • Money flow (CMF) — went from strong outflow to strong inflow
  • Relative strength (RSI) — from very weak to strong
  • Volume — in Feb and March, average or above-average volume has been on up-days

Based on technical analysis, MarketEdge calls GNSS an "early buy" with a chart showing "strongly improving conditions."

Sell

loss Bottom line
-11%

Until last week I held out hope that Genesis would break out of en emerging symmetrical triangle; instead, it broke down and fell out below it. The 50-day moving average has now turned down. In view of the general deterioration in the chart, I decided to get out while my loss was still less than $1 per share overall.