Are You Long SYMC? Better Read This…

  • August 19, 2004
  • Derrick Hobbs


Sometimes you run across a price zone that is extremely critical to
the future direction of price movement, and other times a stock just floats
around in an area that is somewhat meaningless. Symantec (SYMC) is at a
zone of extreme importance. Why?

 

1)     
SYMC is at the .786 retracement of the
April 27 high to June 22 low.

2)     
SYMC is also hitting a large Fibonacci
price resistance zone from 47.50-49.00

3)     
The stock has completed a 5 wave
series up to the above mentioned price resistance zone. This 5 wave series would
typically lend itself to an upcoming 3 wave series to the downside.

 

So, I’d be looking to take
profits on any long positions in SYMC in this zone or looking for opportunities
to short this one with a stop above 49.  Now, let’s consider the possibility
that SYMC rams up through this resistance zone and closes above 49. In that
event the resistance zone is broken and SYMC hits an Air Pocket that translates
to a  quick possible move to 54 (more than a 10% rise in the stock).

 

 

Housekeeping

 

I mentioned in my previous
column that the Nasdaq 100 Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) was poised for a swing up
from my parameters.  The ETF has rallied almost 5% from our zone, and is now
facing its first resistance decision from 34-34.50.  If QQQ can clear this
resistance zone I’d start firing up the “buy pullbacks” machine.

 

Until next time!

 

Derrik


dhobbs@sym.com

 

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