Sidecars

Intermediate-term traders versed in the methodology love the cup-and-handle
pattern. Playing out over 10 weeks or so, it then forms a downward-wedging
handle over the next one to two weeks, then moves higher out of the pattern.
Many times, however, the smaller, mini version can be just as successful for the
shorter-term player who’s focus is geared toward taking quick profits out of the
market. Both traders can possibly benefit from these setups we profile in the Insights
From The War Room.

Two semiconductors are forming potentially bullish patterns that could be of
interest to both traders with a longer-term horizon and swing or daytraders. Vitesse
(
VTSS |
Quote |
Chart |
News |
PowerRating)
and Analog Devices
(
ADI |
Quote |
Chart |
News |
PowerRating)
are tracing out mini cup and
handles within bigger-picture patterns of the same nature.

 

 

 

Interestingly, the Semiconductor Index
(
SOX.X |
Quote |
Chart |
News |
PowerRating)
has
a similar looking chart.

 

 

Several of the other semis are forming looser versions of the
same price action. Keep the semis on the radar for some possible movement to the
upside in the next few days.

Until tomorrow,

Duke