The Real World
On Thursday I mentioned
that I would show a chart of a trade that I took this week.Â
CheckFree
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PowerRating)
has entered a consolidation following a morning run up.* The top of the range
was not far from the morning high, so I waited for a move 1/4 point above this
high. I entered with a limit at 57 1/4, when it set off my alert. I placed my
initial (mental) stop just underneath the low of the trading range. CKFR trended
high for several hours and I exited on a continuation move following the closing
break of the trendline I saw.
The kids are already lining up at the door for my weekly look at the Nasdaq
Composite in Trading the Techs PM.Â
Today’s
Watchlist:Â
(
HWP |
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PowerRating),
(
CKFR |
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PowerRating),
(
FDRY |
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PowerRating),
(
NEWP |
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PowerRating)
Hewlett-Packard
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PowerRating)
broke out to new highs on Thursday. On Friday it tried to put in a continuation
move in the morning, but pulled back. Let’s watch for another move above
Thursday’s intraday high. I’m actually setting my alerts just over 136, to give
it a little more breathing room. The volume on the breakout day was just
average, but the overall tech volume was good on Thursday, so I’m adding it to
the list.
CheckFree Holdings
(
CKFR |
Quote |
Chart |
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PowerRating) broke out from a low-level setup on Thursday.
Like many stocks on Friday it put in continuation move during
amateur-hour. I’m setting my alerts just above Friday’s current intraday high of
61 1/2. As always, be aware of the next two potential resistance levels near 65
and 66.
Foundry Networks
(
FDRY |
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News |
PowerRating) broke out of a low-level setup
several days ago. If you missed the breakout from the consolidation, then you’ll want
to watch for a continuation from the ascending triangle. On Friday it moved
above the top of the ascending triangle with force. Consider watching for a
continuation move. Daytraders should watch for intraday consolidations. Add this
one back to the watchlist.
Newport
(
NEWP |
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Chart |
News |
PowerRating) looked like it had peaked last month. Apparently it was just
looking to for a high-level cup pattern to provide us with a more secure entry.
On Thursday it set a new high. I’m setting our Watchlist alert just over
Thursday intraday high of 119 5/8. Both daytraders and swing traders
should watch this one.
Until later,Â
*Thanks
to my friend Karl for finding this awesome consolidation.
Check back at 2:00PM ET
for Trading the Techs PM.