Same Old Game
The Nasdaq Composite left us last week still in the trading range, though
it is approaching a key low-level breakout zone once again. I am still waiting
for a move over the July highs, followed by a close above the March lows and
April highs to offer a sense of broader market security. Many of the big names
continue to show strength, including Newport
(
NEWP |
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PowerRating), Ciena
(
CIEN |
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PowerRating), and
Brocade
(
BRCD |
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PowerRating).
Yet, as a daytrader, my
focus is still on short-term trading opportunities, several of which we will
look at today.
Today’s Watchlist:Â
(
ALTR |
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PowerRating),
(
VRSN |
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PowerRating),
(
TUTS |
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PowerRating)
Altera
(
ALTR |
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PowerRating)Â
broke out to a new high in mid-August, but failed to continue. Rather, it
entered a trading range. While it looked like it was going to break out from
this range on Friday, the stock quickly reversed and closed at its low. On a
positive note, the volume did once again pick up on Friday, despite the
expectation of light trade. I am now watching for a closing move outside
of the trading range. More aggressive daytraders may look to trade an intraday
breakout, but as a conservative trader, I am waiting for a closing move. The
20-day MA is moving up quickly and may bolster a move. Of course, keep focus
and remember that a trading range does not have a directional bias.
Trade the stock in
accordance with your personality. If your methods tell you not to trade it at
all, then go with it.Â
Verisign
(
VRSN |
Quote |
Chart |
News |
PowerRating)
looked poised to take out a key low-level resistance area, but it quickly
reversed on Friday. Look for this retracement to find support near both the
highs and lows of the July trading range. In a strong market, VRSN could quickly
turn and take out this level. If it heads north, watch for resistance at 200 and
again near the March highs.
Tut Systems
(
TUTS |
Quote |
Chart |
News |
PowerRating)
systems has been consolidating in a rather strange pattern for the last few
weeks. Pullback traders may like this pattern better than breakout traders. With
three near-term trendlines looking to provide support, pullback traders may want
to watch for bounces off these key levels. Set your alerts near each of the
trendlines and watch for intraday reversals near these areas. This is the type
of setup where you will want to definitely combine intraday and daily charts to
search for appropriate entry points. Use the 60-minute charts to find resistance
areas when trading pullbacks.
Until later,Â
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