Charting notes, January 6, palindromic 2002
My low tech brain, running its pattern recognition software (or maybe it’s just going soft, as it were), is picking up on some likely short term topping developments.
QQQ’s… Gapped up on Friday, and made a doji-like candle, closing below the open, on above average volume. Traded a point away its December 6th highs. Re-testing the 61.8% retracement of the decline from May 22 high. ADX is low at 16.
XLK, the Technology SPDR, made a ‘Hanging Man’ candle on Friday. Stochastic is still pointing up. MACD made a series of bullish divergences on the weekly chart, but on the daily it is building, it seems, a third bearish divergent lower high since November.
SWH (Software Holders) gapped up and made a doji on high volume (on Metastock). Daily MACD is bearishly divergent. Trading above or below today’s range ought to serve as an indicator.
SMH (Semiconductor Holders) gapped up, but closed negative for the day.
BBH (Biotech), on the other hand, continued it’s sharp sell off down to 124, only to turn around and rally impulsively up to about 130. Faces heavy congestion in the 130 – 135 area; breaking above it would make the sector interesting for the bulls.
Few more…
The old gassy Nabors (NBR) may pack a swing against a recent low of a couple of days ago. Stochastic oversold, ready to flip up. Hugging its trendline support (from September low).
JDSU: closed at 10, where it is facing resistance. The stock is getting overbought. If and when 10 is broken, a retracement may offer a good opportunity for a long entry. JDSU came down in a zigzag (5-3-5) correction from its November 19 high, retracing less than 61.8% of the advance from the September lows.
MOT gapped up to resistance at 16, but closed with a bearish engulfing candle.
AMCC: Gapped up into a resistance area around 13.50, and didn’t hold. Made a ‘Dark Cloud Cover’.
HWP: Had a 3 day rally, and made a ‘hanging man’ candle on Friday. Needs a stop below the day’s low. Retraced about 80% of the decline from early December. Further strength would be bullish. |
