More Chart notes...I cannot believe the damage done to so many stocks this week so I'm still looking at them, now at weeklies also...
This is not daytraders selling kiddies, there is major distribution going on. It's been visible in the charts for weeks, but now it's so obvious to all now.
I'm trying to include a little more detail to add to my earlier "really bearish chart" comments <g>
MSFT
has a textbook example of a bearflag forming on the daily. Could go between 56-56 are for days till this thing is ready to break, if it does. Bearflags make higher highs and lows and can fool easily that a stock is moving higher...then comes the big surprise. Unless they "save" it fast and get it above 58, it looks about to make another leg down.
CCMP
broke support and the base of a descending (bearish) triangle today. Has to get above 62.76 soon or it's going back to 60.
TARO
Evening Doji Star bearish reversal on the daily, and the floating triangle broke today.
NVDA
Bearflag on the daily chart, doji on the weekly. That means major indecision and reversal possible, which way is not guaranteed. It is on support here though. If it breaks this area, it will collapse to Sept. lows.
EMLX
The rising wedge that had been forming broke on Wednesday, and the weekly has a bearflag right to triple overhead EMA resistance.
QLGC
Rising wedge on weekly, last candle at the top of the wedge is a gravestone doji. Rising wedge that has been forming on the daily broke slightly a few days ago, but it's still holding support. IF 48 breaks, it's probably going back to 45.
BRCM
a bearflag on the daily broke today. The weekly has a descending triangle which is bearish.
AMAT
a rising wedge which has been forming for months broke today. If it snaps back in the wedge it could be a beartrap though, been quite a few of those lately. Needs to pass 54 again to save itself or it's going back to 50.
MYGN
complete chart breakdown, next support on weekly chart is Sept lows if it does not immediately reverse.
MRVL
Small rising wedge on the weekly.
NVLS
has to hold 48.52 or it will drop. Has the same flat bottom pattern so many others had, until recently. Every one's stops are right under the flat area low, so any dip and down they go, with all the stops triggered at once.
CSCO
same flat bottom trading range pattern with a low of 15.92.
BRCD
Rising wedge on daily, bearflag on the weekly.
BEAS
traded over 18 million shares yesterday, a big vol spike (12 mill daily average) as it hit new lows. That low held today, but their was major distribution going on yesterday...And with 18 million shares on a low volume day in the nas it was not us little guys either <g>
KLAC
on the daily looks like it's basing nicely, although it has that flat bottom trading range like the others.
IF it breaks 62.31 It may visit 60 again fast.
On the weekly, a big old rising wedge that has been forming since July 2001, with the last weekly candle a long legged doji. Several indicators on the weekly are hinting the top is in for now. But you never know with these semis, one more "the train is leaving call" and up they go <g>
SEBL
Descending triangle pattern on the weekly. Just barely hanging on to the 20 EMA as of today. Lost the 20 EMA on the weekly for the first time since October 2001.
Partially formed bearflag - complete with pole, on the daily.
IBM
95.76, the last slam low must hold or it's going to revisit the low 90s, the September lows.
WHAT A mess out there. Not one bullish chart among them, and these are most of the top traders lately. Immediate reversal - like Monday - required or the majority of these stocks are headed lower with some real capitulation on the way...
And they need reversals on good volume, bullsih engulfing reversals with real strength to them, and buyers pouring in, good number of blocks etc. Because most of these stocks have been rising lately only on short squeezes, and we all know how long those rallies last.
Some of them will bounce I'm sure, but with these bearish charts, I wouldn't be holding them for long, or without tight stops until classic bottoming reversals are obvious on the daily charts. |
