Excitement…Finally
It’s Friday, and time for our weekly look at the techs and where they stand.
Finally we’ve got some excitement back in the market.
After seeing several different consolidations, the Nasdaq has begun to head
higher again. We are now in the third day of a breakout. On Wednesday we saw the
first move outside of the most recent congestion area. Both Thursday and Friday
the Nadsaq has made a move higher.Â
Volume has also been picking up lately, suggesting that there may something
to this rally. Ideally we’ll see several continuation moves with low volume
pullbacks.
Remember to check the scheduled earnings release dates for
any stock that you plan to trade in the next month.
Watchlist
Update
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NEWP |
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PowerRating)
Note that Newport
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from Trading the Techs AM reports earnings before the open on Monday.
Today’s
Watchlist:Â
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TEK |
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PowerRating),
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CHIR |
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PowerRating),
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PowerRating),
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PowerRating)
Tektronix
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PowerRating) was added
to the Watchlist on Monday. Thursday, following the three-day run-up, TEK
retraced to its near-term uptrend. The action of the last week may also be
tracing out the topside of a channel as well. Continue to monitor TEK for
bounces along the sides of the channel as it trends higher. Take note that the
current ADX reading is over 45, suggesting that Thursday’s action may just be a
pullback.
Chiron
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CHIR |
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PowerRating) has been moving off its lows for the last few weeks.
Following this move of more than 80% it began to trace out a flag formation. On
Friday it tested the high side of the flag and pulled back. As with any
channel-shaped formation, we’ll watch for a move outside of the range. Look for
moves to both the upside and downside.Â
Broadcom
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BRCM |
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PowerRating) has held strong through many of the harsh declines. Over
the last week or so it formed a micro high-level cup. On Thursday it rallied out
of this formation and put in a continuation move intraday on Friday. It has
already pulled back. The pullback may be a potential second entry, or a sign of
a failure. Noting psychological resistance at 250, use caution opening a
position on Friday. Look for volume strength on each leg higher to serve as an
indicator of more upside to follow.
Exchange Applications
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EXAP |
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PowerRating) broke out from a low-level pattern on Tuesday
and has moved higher for four consecutive days. Not that a trend has been
somewhat established, for the near-term, we should set up to monitor for a
pullback. Watch for retracements to the near-term trendlines. Ideally, any
pullback will be on light volume, followed by a high volume move out of the
retracement.
Until Monday,Â