Awoken

The futures have returned to their morning highs and are now
consolidating. They S&Ps were able to break out just before 2:00PM ET and
are now trading near the day high. The Nasdaq has been trending off its lows all day. It has yet to take out the morning highs. Watch for a move above this key level. Volume remains light.

Today’s Watchlist:  
(
KANA |
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News |
PowerRating)
,
(
RMBS |
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News |
PowerRating)
,
(
KLAC |
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Chart |
News |
PowerRating)

Kana Communications
(
KANA |
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News |
PowerRating)
 
gapped higher this morning and kept on moving. Unfortunately, the morning buyers
were left holding the bag. Kana was not able to move over the resistance level
located at the top of its trading range. With the stock trading near its lows
let’s add this to the Watchlist and prepare for a short opportunity. Set your
alerts just below Friday’s intraday low.

 

Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating)
has been consolidating for the last three
weeks. As with any consolidation, watch for a move outside of the trading range.
Rambus is almost 50% off its highs and trading on light volume at the current
time. Avoid being biased to one direction, set your alerts both at the high and
low of the trading range. Let price action be your guide.

KLA-Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating)
is hitting two resistance lines on
Monday. One line is the top of a near-term consolidation, while the other is a
downtrending line representing a series of lower highs. Some traders may be able
to take advantage of a failed move above this level. Others should watch for a
move outside of the trading range, to either the upside or downside. Watch for a
closing move outside of the range followed by a volume-backed continuation move
on the following day. The volume during this near-term congestion has been
average.


Until later, 

Dave Baker