Thursday, July 06, 2006

Trade of the Day - Travelzoo Inc. NASDAQ: (TZOO)

I used to follow TZOO quite closely, but at some point I lost interest. Anyway, it happened to catch my eye in the pre-market so I watched it closely off of the open. After it held support of the 50 period moving average and formed a long lower shadow, it was time to get long. I sold half of my position into strength when it first hit $36.00. I sold the second half of my position after it carved out a lower high on the 5 minute view. Today's high marks bearish resitance dating back to May 12th. The gap spans $36.61 to $37.00. I don't expect it to trade above that level until it has had a chance to consolidate its recent gains, but I'll be watching it closely going forward.

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