It's fun to be right, but it's also important to be right in a sustainable way. Otherwise, what's the point? While it remains to be seen if yours truly was right regarding his call last week on Camtek LTD. (NASDAQ:CAMT) [it's not looking ideal], it's worth another look at CAMT, if only to see how much progress has been made and what needs to happen now.
Just as a refresher, on July 1st, CAMT was dropping some key bullish hints. Specifically, the 3D printing stock was putting substantial pressure on a technical ceiling at $13.45. At the same time, however, Camtek LTD. had also just crossed above several key moving average lines, and better still, we had just seen bullish crosses - of one another - from those key moving average lines. Even better, we were starting to see some of those key moving average lines act as technical floors. Although a move above $13.45 was setting up to be the proverbial icing on the cake, all these clues together after a two-month consolidation phase made a very compelling case in favor of CAMT.
Well, the good news is, after a handful of attempts, Camtek LTD. shares have cleared the hurdle at $13.45. The bad news is, the big gap that the stock left behind this morning to do so is likely to be a drag on the stock from this point forward. It could even require CAMT shares slide back and fill it in. The problem is, should this stock make such a pullback, it could deflate the still-fragile euphoria typically needed to keep an uptrend in motion. Even if an all-out return to Thursday's closing price of $3.20 isn't in the cards, though, the sheer size of today's gain - bullish as it may be - is a tough act to immediately follow.
That said, CAMT is still worth adding to watchlists if not yet to portfolios. The break above the resistance level at $13.45 is still a biggie, and the fact that we're seeing the stock break out on such high volume is a huge clue that the needed participants for this rally are waiting in the wings.
Bottom line? It's still a tough buy at this point, but only because of the gap at the open this morning. If we see a small retreat and then a solid bullish pushback though - whether or not the gap gets filled - Camtek LTD. will be fully buy-worthy. CAMT shares were priced above $5.00 just a few months ago, with a lot less going for them then.
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