Upward And Onward
The Nasdaq is putting in its first continuation move following Wednesday’s
breakout. We saw this a couple of weeks ago and it failed, let’s watch to see
where it takes us.Â
Don’t forget that on Friday we’ll take our weekly look at the Nasdaq and
where it stands.
Later today I’m going to take a look at a group in the tech sector.
Today’s
Update:
(
PFE |
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PowerRating)
Pfizer
(
PFE |
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PowerRating) from the new
Non-Tech Watchlist failed to put in the continuation move that we were
looking for. It has re-entered the consolidation. I’m removing it from the list
until we see another breakout.
Today’s
Watchlist:Â
(
APCC |
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PowerRating),
(
CS |
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News |
PowerRating),
(
ASWX |
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PowerRating),
(
PWER |
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PowerRating)
American Power Conversions
(
APCC |
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News |
PowerRating) looks like it wants to test its all-time
highs again. Watch for a breakout above this key level, which has been tested
several times already. Set your alerts at 45 1/4. Currently, it’s consolidating
after gapping, a common chart pattern.
We may be seeing a low-level breakout on Cabletron Systems
(
CS |
Quote |
Chart |
News |
PowerRating). After basing
for several months, Cabletron began to consolidate near the top of the
congestion. On Thursday we see the first move outside of the range. If you
missed the initial move, watch for a continuation move based on a close above
the breakout level highlighted below. Set your alerts above Thursday intraday
high.
Active Software
(
ASWX |
Quote |
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News |
PowerRating) has a similar pattern, but in this
case it looks like its part of a bigger-picture pending cup pattern. During the
month of June, ASWX started to trace out an upward wedging pattern, which
suggests a potential breakout as well, but it’s far from complete.
My primary concern is the near-term consolidation, highlighted
in red, that we are seeing it breakout from. Look for this breakout to
potentially lead into the top of the wedge, where it may see resistance. A more
powerful move would be a volume-backed surged outside of the wedge. Set several
alerts along the top of the wedge, as well as one above Thursday intraday
high.
Power One
(
PWER |
Quote |
Chart |
News |
PowerRating) formed a simple and beautiful pattern on the daily charts.
It trending up for several months and then formed a small cup. We saw a breakout
on strong volume on Wednesday. Although there was a continuation move
this morning, it was during amateur hour. It has now retraced back to the
breakout level. Look for a continuation move on Thursday to take out Wednesday’s
intraday high.
Until later,Â
Check back at 2:00PM ET
for Trading the Techs PM.