Don’t Call It A Comeback
Index Check Up
Just when you thought that the semis
were making a comeback…
Â
Don’t be distracted by intraday moves.
Today’s Watchlist:Â
(
TEVA |
Quote |
Chart |
News |
PowerRating),
(
ATON |
Quote |
Chart |
News |
PowerRating),
(
TLCM |
Quote |
Chart |
News |
PowerRating),
(
MMCN |
Quote |
Chart |
News |
PowerRating),
(
ALGX |
Quote |
Chart |
News |
PowerRating)
Teva Pharmaceuticals
(
TEVA |
Quote |
Chart |
News |
PowerRating) broke
out on Monday. On Tuesday, like many other techs, it put in a failed
continuation move. I’m adding it to the Watchlist now so that we can watch for a
second attempt to take out the new high. Set your alerts near Mondays intraday
high and watch for a volume-backed continuation. The biotechs have been
quite popular lately, so we need to monitor several of the players. We may see a
pullback take TEVA back down to the break level, but that’s reasonable.
Add Alteon Websystems
(
ATON |
Quote |
Chart |
News |
PowerRating) to your list of failed
continuations as well. It feel right from the open this morning. The current
pullback has not take it down through the break level. While it would have been
nice to play the continuation. The near-term uptrend is still holding well. Back
in July it broke out of a consolidation and exploded to the upside. As with many
of the ATON breakouts, it was followed by a continuation. I wouldn’t be
surprised to see another such pattern occur. Of course, in this market, anything
goes.
Telcom Semiconductor
(
TLCM |
Quote |
Chart |
News |
PowerRating) is mimicking the pattern drawn
by the entire semi index. Watch for a continuation of the current situation and
add this one to the Short list.
MMC Networks
(
MMCN |
Quote |
Chart |
News |
PowerRating) looked like it was breaking out on
Monday, but it pulled back on Tuesday. Watch for the pullback to take the price
back to the near-term uptrend. This near-term trend could possibly take it over
the recent high.Â
Daytraders should watch for breakouts from the short-term
consolidation to provide trading opportunities. When taking a trade based on a
short-term consolidation, remember to watch for resistance at levels that have
been tested two or three times.
Allegiance Telecom
(
ALGX |
Quote |
Chart |
News |
PowerRating), which I’m adding to the
Shortlist, broke down on Monday as well. Intraday, it looks like we may be
seeing a continuation on volume greater than that of Monday. Should it head
lower, watch for a potential gap-filling move (from early June). Should it
continue south, look for support at 50, where psychology may kick in. Note the
quadruple top that may have formed.
Until later,Â
Â