The Whole Picture
I have always felt that no stock chart is complete
without volume. The activity in volume can often forecast upcoming moves. Today
I want to take a look at some stocks with interesting volume activity.
Today’s Tech Watchlist:
(
FIBR |
Quote |
Chart |
News |
PowerRating),
(
PALM |
Quote |
Chart |
News |
PowerRating),
(
BIOI |
Quote |
Chart |
News |
PowerRating)
Osicom
(
FIBR |
Quote |
Chart |
News |
PowerRating) has been
consolidating for the past four days. Last week it closed below another
near-term support level, and made another move lower. The recent volume activity
is eye-catching. Whenever I see a consolidation pattern, I look for consistent
volume. In this case, we see descending volume, which suggests that there may be
a move to come. Set your alerts just outside of the trading range as we watch for
both a breakout and for another breakdown. With the current trend being down,
this may be the bias that the consolidation has.
Palm
(
PALM |
Quote |
Chart |
News |
PowerRating), which once traded
over 100, is tracing out a triangle pattern on the daily charts. Once again,
volume is a key factor. As PALM nears the apex of the triangle formation, the
volume is dwindling lower, suggesting a potential upcoming move. Watch for moves
relative to diagonal trendlines is often more difficult than using horizontal
lines, but some setups require it.
BioSource
(
BIOI |
Quote |
Chart |
News |
PowerRating) is another
triangle setup, but a bit looser. Again, set your alerts relative to the
trendlines as we await a move outside of the triangle formation. Another way to
look at the chart is to use horizontal lines to highlight the consolidation
pattern. Either way, watch for a volume-backed move outside of the trading
pattern.
Until later,Â