Tuesday, January 22, 2013

Fusion-IO, Inc. (NYSE: FIO)

Fusion-io, Inc. engages in the development, marketing, and sale of storage memory platforms for enterprise data decentralization primarily in the United States. Its integrated hardware and software platform enables the decentralization of data from legacy architectures and specialized hardware. The company's storage memory platform includes ioDrive, ioFX, and ioCache products; directCache data-tiering software; ioTurbine virtualization software; ioSphere platform management software; and ION data accelerator software. Its products are used in various markets, such as financial services, Internet, technology, education, retail, manufacturing, energy, life sciences, and government. Fusion-io, Inc. sells its solutions through its direct sales force, original equipment manufacturers, and other channel partners. The company was formerly known as Fusion Multisystems, Inc. and changed its name to Fusion-io, Inc. in June 2010. Fusion-io, Inc. was founded in 2005 and is headquartered in Salt Lake City, Utah.

To analyze Fusion's stock for potential trading opportunities, please take a look at the 1-year chart of FIO (Fusion-io, Inc.) below with my added notations:
1-year chart of FIO (Fusion-io, Inc.) FIO really hasn't went much of anywhere over the last year. It's been up, then down, then up again, and now back down. Over that period of time though the stock has created a very common level at $22. That level was support back in January and then again in November to December (blue). The $22 level has also been resistance back in the summer and here again this week. A fall from $22 should mean an eventual test of the $18 lower level of support (teal).

The Tale of the Tape: FIO has a key level at $22. You could short FIO if it rallies back up to the $22 level with a stop placed above $12, or you could buy the stock if it breaks back above the $22 resistance. A fall down to $18 would also be an opportunity to go long on the stock.


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