I talk about a lot of ideas over the course of the day, but some of them I like more than others. One of the ones I particularly liked today was Trident Microsystems (TRID). It’s only a conditionally bullish affinity, but if a couple of minor hurdles can be crossed soon, I suspect Trident Microsystems shares could move higher in a hurry. Let’s take a look.

There are actually a few different things going on here, the most important of which is the slightly-rising support line that Trident pushed off of in early December… for the second time in two weeks. It’s the same support line that extends back to June and July. To see it hold up again after this much time says a lot. However, it’s not enough in itself to get fully bullish on TRID.

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The resistance line I’m watching is the horizontal resistance line around $2.00. If Trident Microsystems can hurdle that level, yes, I can see a repeat of August’s runup. That’s not a guarantee, but it’s a high odds, low risk possibility.

By the way, I’m not entirely surprised TRID is finding a little indecision here. The black line on the chart is the 200 day moving average line (the grand-daddy of all moving averages), and it’s pretty clear it’s been a hot-button for Trident Microsystems shares now that it’s being revisited. If the chart can use this waffling as a wind-up/slingshot kind of setup, the move above $2.00 should be big.

Anyway, I just wanted to bring it up and put some focus on it, as it’s a compelling setup. So far, it is NOT trade-worthy. If it does move into position though, I think the risk/reward ratio with Trident is very favorable. Just wanted to give you a heads-up before the fact.

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