Some Bull Flags

• August 8, 2002
• Dave Floyd

Today
will be an abbreviated column, I was not able
to trade yesterday (completion of move) and cannot offer very much perspective
from the trading day. However, I have provided you with the
KTNs as well as some specific levels on
stocks that will complement your HVT or
Swing Trading approach.
Tomorrow I will back to the standard
format, I apologize for the brief column.

Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating):

AMGN continues to trade technically
very well. The breakout of the daily bull flag after a pullback to the 50-day MA
continues to move higher. Breaking it down to a shorter timeframe, AMGN pulled
back to 38% retracement of the move up from July 23 and is setting up to break
recent highs of 46.68. First resistance should come in around 49.15.

Juniper
Networks
(
JNPR |
Quote |
Chart |
News |
PowerRating):

JNPR is charting quite well. JNPR made
a nice move off the lows from mid-July and has pulled back to 50% on the daily.
JNPR is also being held down by the 50 day MA. Taking a look at the 60 min, a
nice downtrend line connecting the highs from 7/17, 7/31 and 8/07 has formed.
The way you play this trade is that you have a long bias from the daily
anticipating a break of the bull flag to higher levels. Then what you’re looking
for is an entry signal on a lower time frame. In this example, take a break of
the 3pt downtrend line on the 60 min as your green-light.

IDEC
Pharmaceuticals
(
IDPH |
Quote |
Chart |
News |
PowerRating):

Another bull flag on the daily that is
starting to play out after testing and closing above the 50-day MA. I’m looking
for a move above 42.95 for a test of recent highs at 45.34

IBM

(
IBM |
Quote |
Chart |
News |
PowerRating):

IBM continues to
chop between the 65.75-70 level. The 69.23-69.53-70.15
FNs comprise a decent
zone of resistance in IBM. To the downside, 66.75 is a very critical support
level, which has held three times so far. If this gets broken, IBM doesn’t have
much support until the 63 area.
                                                                                                                                         

Key Technical
Numbers: (futures)

S&Ps	Nasdaq
903 897 891 886.50 *878.00* (Key) 870 864.75 859	958.25 945.50 930.00 923.5 914.83 901.75 *888.25* (Key) 865.16

 

 

 

 

As always, feel free to send me your
comments and questions. See you in
TradersWire.

David