B-tech With A V-tech
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There seems to be a lot of action in
the biotechs today, as well as the chip group. Note the convergence, in biotech,
of the near-term bottom with the longer-term uptrend. Remember that you can
trade this index through options on both the BTK and the BBH, as well as buying
actual shares of the BBH. We’re still waiting for a leader to take us out of this
consolidation, maybe this will be the one.
Later today we’ll our weekly look at
the tech sector. Check back at 2:00PM ET.
Today’s Watchlist:
(
TQNT |
Quote |
Chart |
News |
PowerRating),
(
IMNX |
Quote |
Chart |
News |
PowerRating),
(
MYGN |
Quote |
Chart |
News |
PowerRating),
(
RMBS |
Quote |
Chart |
News |
PowerRating)
Triquint Semi
(
TQNT |
Quote |
Chart |
News |
PowerRating) has had some
trouble over the near-term, but remains intact in the bigger picture. We
first drew a trendline when the second low was traced out in late May. On
Thursday we saw the convergence of two trendlines, the uptrend and near-term
supTheport. On bounce on Friday suggests that the trend is still holding strong,
but the day is still young. Active traders will want to watch for a move above
100, while more conservative traders will wait for a move over the all-time
high. If you open a position in Triquint, look for near-term resistance around
120.
Immunex
(
IMNX |
Quote |
Chart |
News |
PowerRating) has
traced out a pennant formation on the daily charts. As you know, the pennant has
been Trading the Techs’ most successful predictor of an upcoming move. Traders
should watch for a move out of the formation. Conservative traders will wait for
a closing move as well as a next-day continuation. Consider waiting for a move
over the near-term resistance level that forms the top of the cup.
Myriad Genetics
(
MYGN |
Quote |
Chart |
News |
PowerRating), also in biotech, is setting in a trading range again. This trading
range is much tighter than the May range, so we may see a stronger move. Also I
only mentioned a possible breakout on the chart, we will also monitor Myriad for
a breakdown. Set your alerts near 119 and 152. Watch for a continuation
following a move outside of the range.Â
The other way to trade
this pattern would be to look for bounces off the top and bottom of the range.
With over 30 points between the high and low, there is ample opportunity for
swing trades.
Lastly, let’s take a look
at Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating). After surging an absolutely obscene number of points in
just a few days following its split, Rambus retraced a bit and formed a bullish
flag pattern. On Friday it moved outside of the flag formation. If it is able to
hold up today, we’ll look for a continuation move on Monday. Set your alerts
roughly 1/4 to 1/2 point above Friday’s intraday high. If you open a
postion, look for resistance at the all-time high.Â
Traders should also add
Rambus to their Watchlist because it may be tracing out a cup-with-handle
pattern as well. If it returns to its previous high, we’ll take another look at
this bigger-picture pattern.
Until later,Â
Waiting in the Wings:
N4k, just 70 points away.