Johnny Q! Re: KLAC .....
The candlesticks are looking good with KLAC, as is the volume. I see some troubling aspects though and it's the result of my analysis, not anything market specific.
stockcharts.com[h,a]daclyymy[pb50!b200!b25!b9!f][vc60][iut!Ub14!Ua12,26,9!Lh14,3!Lc20!Ll14]
I mentioned the resistance levels earlier today. ( 60.80 - 61.00 ) Isn't it interesting that KLAC didn't test these levels? The bears gently but firmly pushed it right back down to a more comfortable level.
The sticks indicate to me that the bulls are regrouping and will try another assault at the 60.80 level unless some negative news regarding the market comes out before the open.
The stock is overbought according to the Stochastics, which usually warn first, but has a little ways to go before being overbought on the Relative Strength Indicator. (Isn't it odd how KLAC becomes overbought on the RSI when the resistance level is achieved?)
Watch the volume! It will take heavy volume to keep KLAC in the overbought range, otherwise you'll see a lot of profit taking, in my opinion.
The Stochastic Indicator has two lines, the %K (the faster line, and the %D (the slower line). The %K line looks to be turning down. This is odd in the face of such heavy volume. Well, it isn't odd actually when considering the condition of the market. It's indicating to me that some people are taking profits prior to the RSI hitting 70. Evidently, a lot of folks don't have confidence that KLAC can stay overbought.
Look for the bulls to assault the 60.80 - 61.00 resistance line in the AM. If they achieve it, watch the volume. Hitting 70 on the RSI with increasing volume means the mo-mo players are coming! The bulls will have a field day, the bears will be roasted for dinner if the volume shows up.
dabum |
