One Down
The Nasdaq has held through its first
intraday pullback and the Nasdaq futures have formed a mini-cup pattern.
Currently, the trend is up, but as I watch the tape on many of the big names, I
see a lot of whipsaw, indicating indecision among investors.Â
Today’s Watchlist:
(
GILTF |
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News |
PowerRating),
(
OSIP |
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Chart |
News |
PowerRating)
With the short-term rally in the Nasdaq,
several stocks have formed potential bearish flags.
Gilat Satellite Networks
(
GILTF |
Quote |
Chart |
News |
PowerRating)
has rallied off its lows for three days now, creating a near-term uptrending
channel, potentially, a bearish flag.
As the stock continues to trend in the
channel, it will edge closer to resistance, now located just under 50. As with
any bearish flag pattern, what we want to watch for is a break of the support
along the bottom trendline. Since the stock is not all that far off its lows, it
would be safest to watch for a move below last Thursday’s intraday low. Set your alerts near 45 and 42 1/2.
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OSI Pharmaceuticals
(
OSIP |
Quote |
Chart |
News |
PowerRating) falls
in a class somewhere between the drug companies and the biotech group, as it is
a pharmaceutical, but is volatile like a biotech.
OSI broke below two converging support
lines on Monday. First, the breakout level which should have switched over to
near-term support level near 70, gave way. Secondly, the uptrend that began on
the most recent rally from the last dip did not offer up much help either. At
this point we will watch for a continuation move on Tuesday based on prints
under the intraday low from Monday.
Speaking of drugs, why
don’t we take a quick look at the group? The index broke out of an uptrending
channel and hit the resistance level that it formed in early July.
Vive la resistance.
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Until later,