Semi-Big
With so many of the big names being in
the chip group, I like to always have one eye on the SOX.
Presently, the 60-minute chart shows
that the semiconductor group is in a downward channel. The close on Monday was
right in line with what should be expected, a bounce off the top of the channel.
The index found support near 745, which
was the top prior to Monday’s gap. A point of information to remember is that
the six largest members of the index, in order from largest to smallest,
are XLNX, LLTC, RMBS, AMAT, TXN, and INTC.
Today’s Watchlist:Â
(
NUAN |
Quote |
Chart |
News |
PowerRating)
Nuance
Communications
(
NUAN |
Quote |
Chart |
News |
PowerRating) has been trending south since setting a high near 170
in August. Currently, it is resting in the middle of the channel.
Interestingly, there is currently a pattern within a pattern, in this case, a
pennant. The pennant is an indecisive pattern which a stock may form before
making a sharp move. Like many consolidation formations, this pattern has no
directional bias.
Set your alerts in
accordance with the trendline. The upcoming move, in either direction, is likely
to lead to a test of the two channel lines, highlighted in red below.
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If you are a one who likes
to follow multiple time frames or looks at fractals, like myself, you will
notice that the weekly chart shows a very similar pattern. Since the topping off
in August, it has also entered a weekly downtrending channel. Based on this
pattern, Nuance looks like it is topping off once again, which would result
in a breakdown for the pennant formation.
A bientot,