Seems there are 3 chart patterns I have been watching the past 10 days or so: The strong stocks that are trading above their 10 and 20 day moving averages like FNSR was 3 days ago, they take out first the 10 day than they bounce off the 20 day (about 10 points or so), FNSR is in the second stage where its not quite as damaged as it still trading above the rising 50 and 200 day moving average and the 20 day itself is still rising. Or others like IART that might just have a 10 day moving average bounce back up.
Then there is the worst stage: Stocks like SDLI, ARBA,BRCD, EMC, GLW, CSCO, TQNT that are already in their double bottom breakout stage and have dropped below a lot of support. These will have a rougher time recovering. FLEX seems to be like FNSR in that it might be good for a 10% or 15% continued downside. RIMM, CHKP, BEAS look like continuing shorts and they move down quite consistently during the session.
The stocks like UTEK that need to pull back can be short term short shorts. For those like SDLI, CIEN, BRCD, TQNT, we need a reversal pattern an overall pullback and not just one day. We might then come off these lows but at this point I don't think any rally off their lows will do anything but stall. At least if we see some sign of a bottoming or downtrend reversal, we can hope for a technical pattern that would appear to reverse these falling prices. Perhaps after they get low enough and they begin to retrace back up from some area on the chart where there was a 38% bounce of a significant move from a high to a low area in the past.
Its not only techs but stocks like PAYX still need a sign. OXHP and FNM had these reversals already. Some health care stocks have had them and one like CVTY might continue with one. |
