Gap Filling
If you are one who does not believe that gaps are often filled, then take a
look at the chart of Biosite
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PowerRating) from Thursday. After it gapped up in
the morning, it decided to fill the gap, the 14 point gap.
Today’s Watchlist:Â
(
SANM |
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PowerRating),Â
(
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PowerRating),
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PowerRating),
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PowerRating)
Sanmina
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PowerRating) broke out from a high-level consolidation
pattern on Thursday. Both daytraders and swing traders should watch for a move
above Thursday’s intraday high, which was set on high volume. Recently someone
wrote to me and asked why I often highlight breakouts after they happen. I find
that it is safer to enter a breakout after it has closed outside of the trading
range, rather than on first day. Many breakouts have been failing the following
day.
Newport Corporation
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PowerRating), highlighted on Thursday as one to possibly
enter on a break of the intraday high, is up 8 points again. A handsome profit
for any short-term trader. Do not forget to trail your stops.
Clear Channel Communications
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PowerRating) may be setting up as a
potential short. CCU tested support again on Friday for the third time since
coming off its April lows. This base, which formerly served as resistance is now
playing the role of support. If this level is broken, CCU could see new
near-term lows. The high-volume move on Thursday may be a sign of things to
come.
Maxim Integrated
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PowerRating) rallied out of a bullish flag on
Thursday and appears to be continuing on Friday. With no overhead resistance,
this may be one of the leaders to watch.
Until later,Â