Techs, Not So Shabby
On Friday I took my weekly
look at the Nasdaq Composite. This morning, let’s take a look at another group
of stocks within the tech sector.
The Morgan Stanley High
Tech index, much like the Nasdaq, has moved out of its near-term consolidation.
After several weeks of trading in a rather tight range, we’ve now seen three
consecutive moves higher. Volume has been improving across the board as well,
which is also a positive sign. Continue to watch for volume-backed moves higher
alongÂ
Today’s
Watchlist
(
EMC |
Quote |
Chart |
News |
PowerRating),
(
AGN |
Quote |
Chart |
News |
PowerRating),
(
EFNT |
Quote |
Chart |
News |
PowerRating),
(
INTC |
Quote |
Chart |
News |
PowerRating)
EMC
(
EMC |
Quote |
Chart |
News |
PowerRating) created a
potential short-term trading opportunity in late June when it broke out to new
highs for three consecutive days. After peaking at 83 1/2 we saw EMC pull back
for several weeks. It now looks like it’s working to form a high-level cup near
its all-time high. Set your alerts near the all-time high as we watch for a
potential breakout to be realized. Ideally, the break out will take place on
high volume.
Allergan
(
AGN |
Quote |
Chart |
News |
PowerRating) was breaking out to new highs day-after-day.
On Wednesday it set another intraday high before retracing. The move on Friday
took it down to its near-term trendline, which is currently backed by its 50-day
MA. On the long side, we’ll watch for a rally out of the pullback to potentially
take it back to either its previous high or new highs.Â
Efficient Networks
(
EFNT |
Quote |
Chart |
News |
PowerRating)
crossed above its 50-day MA on Friday on strong volume. This low-level breakout
brings EFNT to the Watchlist. Watch for a continuation move on Monday. Should it
head higher, beware of psychological resistance at 100. Ideally, we will see
strong volume on any continuation move, just as we did on the initial breakout.
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), one of
the big boys, show strength on Friday as well. The near-term uptrend
pushed it through its previous high, resulting in a new all-time high close. As
with any breakout, we’ll watch for a continuation move on Monday to take out the
intraday high from Friday. Intel has also formed a bigger-picture cup
pattern. Over the last few months we have seen consecutive higher lows.
Today’s
Shortlist:
(
JMED |
Quote |
Chart |
News |
PowerRating)
Jones Pharmaceuticals
(
JMED |
Quote |
Chart |
News |
PowerRating)
broke down on Friday when it moved below both its 50-day MA and a key support
line. This move was backed by strong volume, which may indicate a potential move
further south. Watch for a move below Friday’s intraday low. Watch for
potential support 33 and again near 30.
Until later,Â
Remember to use stops on each trade.
Check back at 2:00PM ET
for Trading the Techs PM.
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