Support, A State Of Mind
Last night, Kevin Marder wrote “Often,
an index will undercut a widely-watched ‘support’ point on heavy
volume, only to shake out everyone and their brother, in the process creating a
durable bottom that ‘everyone’ thought wasn’t possible.” I
completely agree with his analysis. Always
keep this in mind when listening to the pundits and before you pull the trigger
on a trade.Â
Today’s Tech Watchlist:
(
ARBA |
Quote |
Chart |
News |
PowerRating),
(
SCMM |
Quote |
Chart |
News |
PowerRating),
(
SWCM |
Quote |
Chart |
News |
PowerRating)
Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating) is one of many big-name stocks getting slaughtered. Whenever I see increased volatility in a stock,
it’s crucial to get a feel for the bigger picture. In the case of ARBA, it’s not
exactly beautiful. Last week, ARBA closed below weekly support, and it put in a
weekly continuation move on Monday. The volume is on track to be quite strong
this week, which, if coinciding with a bigger move, may not be pretty.
SCM Microsystems
(
SCMM |
Quote |
Chart |
News |
PowerRating) has
been in a consolidation pattern for the last two weeks. As I discussed in my
article this morning, it’s very important to always note the volume activity.
Once again we see decreasing volume coinciding with a consolidation pattern,
which suggests that a move may be coming. Set your alerts near the high and low
of the near-term trading range.
Software.com
(
SWCM |
Quote |
Chart |
News |
PowerRating) has retraced to its most recent
breakout level. There are both long and short opportunities here. On the short
side, watch for a break of this new support level, which formed on the breakout
above resistance. On the long side, look for the stock to form a small saucer
pattern and take out the final retracement day’s high, or, for the more
conservative trader, for it to take out the all-time high.
Until later,Â