According to news reports, the initial public offering of Cirtek Holdings Philippines Corporation (or CHIPS, its stock symbol), on the November 18, 2011 listing date, is oversubscribed by more than four times the allotment.
This demand alone could crazily drive up its price. Yet, market sentiments aren’t enough for smart investing or short-term trading. For those interested in looking at the company’s background, this link provides some helpful information about it: Cirtek
On the other hand, most technical analysts also wouldn’t agree on purchasing Cirtek IPO based on its fundamentals and market sentiments. Personally, I would want to see the Cirtek stock chart with at least a year of historical data but there’s none. So the closest I can get into grasping its chart is by looking at its industry background.
The PHLX Semiconductor Sector (^SOX) is a Philadelphia Stock Exchange capitalization-weighted index on which the companies part of it are involved in the design, distribution, manufacture, and sale of semiconductors. As the short term chart suggests, ^SOX could be primed for a bullish move if it successfully breaks out from the double bottom formation. If you notice, there is also 1-month symmetrical triangle setting up for the double bottom’s possible breakout. If this happens, the 9-month resistance would be broken as well and there will be a bigger upside target. With the fundamentals and technicals provided, now it is up to you to decide on how to trade CHIPS.