Limited Action
The morning action has been limited, with small moves on light volume.
The race out of the gate was followed by a quick pullback. The tech futures
made a sharp intraday spike downard and are now consolidating. Look for
light trading action and a possible move in the last hour.
Today’s
Watchlist:
(
NVDA |
Quote |
Chart |
News |
PowerRating),
(
ATML |
Quote |
Chart |
News |
PowerRating),
(
TERN |
Quote |
Chart |
News |
PowerRating)
Nvidia
(
NVDA |
Quote |
Chart |
News |
PowerRating) pulled
back almost 50% from its highs before it finally bounced. What it’s showing
right now is a potential W-bottom formed over July and August. As it
approaches its former highs, we’ll monitor this stock for a potential
breakout. Set your alerts near the all-time high and watch for a potential
long opportunity based on a volume-backed move above this key resistance
area.
In the low-level cup department, we see Atmel
(
ATML |
Quote |
Chart |
News |
PowerRating), which recently
came off its lows. The last few intraday downward spikes were backed by
volume, perhaps suggesting a reversal. Watch for a move over the 40-42 area
to possibly offer a long opportunity. The next key resistance level is at
50, which would give it some room to head higher in a low-level-breakout scenario.
On the shortside, Terayon
(
TERN |
Quote |
Chart |
News |
PowerRating) is setting up for
a breakdown. Once again, it’s trading at its day’s low and holding under the
20-day MA. Watch for a near-term closing low, perhaps below 47, and a
continuation move on Tuesday, to provide a short setup. Should it break down,
there may be a bounce near 40, where it found support in late May. A
breakdown below these key levels may signal a longer-than-short-term play, as
it has been trying to base for several months, but has been unable to find
any buyers.
