Confirmation From An Index
As you know, QLogic Corp (QLGC)
is one of the popular stocks that make up the NASDAQ 100 index. Its daily chart
below (as of the close of 6/27/01) reveals that QLGC has a five-month resistance
level of about 62. I’m sure many short- and intermediate-term traders are
waiting for a breakout above this level. Â
A successful breakout must be
accompanied by strong volume, and the breakout bar should be wider than normal. Let’s take a look at the five-minute chart below. QLGC staged a powerful
breakout above its resistance level at 11:30 this morning (6/28/01).Â
What else was happening at 11:30
this morning that also helped QLGC’s breakout? I mentioned earlier that QLGC is
a component of the NASDAQ 100 index. You guessed it. The index was also
breaking above its intraday resistance level at 11:30 a.m.
It pays to watch the index,
especially if your stock is a part of it.
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