Upsy Downsy
What looked to be a bloody day at the open offered a great reversal trading
opportunity. After breaking out from an intraday cup-with-handle formation, the
floor quickly caved and the Nasdaq headed south again. Currently, the Composite
is down 1% on the day and the semiconductors are down nearly 3% on the day.
The semiconductors fell from the top of the channel that I
mentioned earlier. But as for the techs in general, they are still very choppy,
showing several reversal patterns each day.
In the semiconductor group is Emcore
(
EMKR |
Quote |
Chart |
News |
PowerRating).
On Thursday, it finally broke its series of lower highs, intraday. Currently, it
is trading under the next major resistance level, the 200-day MA. If it can get
through this area, it may be able to test the 50 area, which is both
psychological resistance and technical resistance. Watch for a close above the
200-day MA and set your alerts accordingly.
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Until later,