This stock was signaled on my trade scanner at 11:20am after the 8 period sma crossed the 20 period sma on the 15 min. chart. I like to see a MACD signal cross on a 30 min. chart however, before a trade is placed. A retest of any MACD signal cross on higher frequency trading time frame is often more successful after the its larger multiple time validates it. Most multiples run up and down in frequency by 5.
IDG hit a trading low yesterday, August 27, 2009, of 12.65 and then gapped higher today and closed at 14.39. Its high for the day. The daily chart run from the March lows was from 3.50 to 21.04 in early August. A 38% Fibonacci retracement from the March low to this high would be 14.33972. A 62% Fibonacci retracement would be 10.1652.
Notice that the recent trading low tested the 38% retracement level and closed higher at this level today. The 30 min. MACD chart shows a successful retest of its signal and has crossed the zero line today. Because this stock could still be in a daily wave 2 ABC downtrend, trade this reversal point as the B wave of this correction. Anticipate a further pullback towards the 62% level to complete the downtrend or retest this support at 12.65 and form a flat triangle correction.
The possible trade for now on the 30 min. chart would be from 12.65 to 16.54 3 waves of possible B wave correction and increase your sell stop appropriately if this reversal continues 5 waves.