Taking A Breather
Taking a quick look at the Dow Jones
(
INDU |
Quote |
Chart |
News |
PowerRating), it is currently forming a
small bullish flag as it takes a breather from the rally of the lows. It looks
like it is heading back toward the trendline that formed during the most recent
rally.
Second, since the biotechs have been so strong lately, I thought
at we should look at it as well. It has rallied well off its lows, roughly 76
points, to a resistance area. While I only highlighted the one line below, the
area between 775 and 800 is resistance.
It has also formed an ascending trendline which has served as
support during Friday’s intraday pullback.Â
I also wanted to show everyone a setup that I really liked
today, Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating). It is one of the most heavily traded today and
quickly rallied out of a consolidation pattern this morning and entered a new
consolidation. On the second breakout, it formed a trendline that offered great
entry points on each bounce. The most recent pullback was on descending volume
and it has just started to rally out of a mini-cup.
Today’s Watchlist:Â
(
COCO |
Quote |
Chart |
News |
PowerRating)
It’s not a tech stock, but I am all
about setups.
Corinthian Colleges
(
COCO |
Quote |
Chart |
News |
PowerRating) looks
like it’s forming an ascending triangle on the daily charts. It has tested the
same level five times now. Although the top is near 69 1/2, to be conservative,
consider waiting for a move over 70. Note that as it approaches the apex of the
triangle, the volume is declining.Â
Do not forget to watch for a break of
the bottom of the triangle as well.
Â
A Lundi mes amis,
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