Drilling For Techs
I’ll be available for questions on the Technology
Stocks Message Board in the community from 8:00PM to 10:00PM ET on Thursday
July 21.
Index Check Up – Oil
Service
You probably wouldn’t expect to see a chart of the Oil Service Sector in a
column about tech stocks, but I would. It’s important to watch every sector to
see how they are acting on a given day. Many sectors move in tandem, while
others move in opposite directions. In the case of the oil service sector,
notice how it moves in the opposite direction of the tech sector. As the techs
were breaking out of their consolidation, the oil services group headed lower.
Today’s Watchlist:Â
(
ENZN |
Quote |
Chart |
News |
PowerRating),
(
JNPR |
Quote |
Chart |
News |
PowerRating),
(
ARBA |
Quote |
Chart |
News |
PowerRating)
Enzon
(
ENZN |
Quote |
Chart |
News |
PowerRating) has been trending
downward for some time now. On Wednesday it hit a key support level. Near
roughly 48 3/4 we see the convergence of a near-term uptrend and a former
resistance level. Watch for a bounce off this key level. As always, we’ll watch
for resistance at 50. Should it break below this level, watch for support to pop
up somewhere in the trading range that ENZN exited last week.
Juniper Networks
(
JNPR |
Quote |
Chart |
News |
PowerRating) brokeout from a large cup pattern
recently. Currently it is retracing back to the lip of the cup. On Wednesday it
pulled back to the lip of the cup. Watch for a bounce near this level to
potentially form a handle. While a breakdown below the lip may provide a
potential short-term short opportunity, I’m going to focus on the long side, as
the stock has been trending well.
Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating) has entered another consolidation pattern. Not
that past action is a prediction of future results, but what happened on the
last breakout was exciting. Watch for both a potential breakout and breakdown.
The consolidation pattern has no directional bias. The gap action following the
earnings announcement was also exciting. The key to the current setup is that
it’s resting near its highs. Following a gap, it’s often necessary to give the
public a few days to react.
RF Micro Devices
(
RFMD |
Quote |
Chart |
News |
PowerRating) has been testing its lows
repeatedly. Watch for a move below 80, where we see a key support level. Look
for a volume-backed surge lower. There have been several volume anomalies in the
last few weeks, which may be a sign of things to come. A move above the 50-day
MA would result in my removing RFMD from the Watchlist.
Until later,Â
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