Novellus(NVLS)--a fascinating chart.
Long term lines
Uptrend starting 7/16/96 acted as support during 4/97 tech correction, but could not hold 12 /97, now acting as resistance at 35..5, and was broken on Thrusday- Friday, closing at 36.
Downtrend from 2/97, 5/97 broken temporarily to the upside by exuberance of 6/97, gave support on the dark day of 10/28, but eventuually broke though in 11/97, becoming resistance at 37.25 on 1/29/98
Horizontal support or resistance at 35 many times in it's history. 4 times when it chose to cross 35 it gapped big time and kept on goin', no matter if rising or falling.
Breaking out of correction
Shorter term MIMBO determined by hight of 66 on 10/13, recent low of 28 and subsequent activity leading to a breakout above 35.375
MACD positive
Double bottom at 28, the first volume high, the second lower.
Stoch 13,8,8 broke out of inverse H & S--always save any IH & S for you Doug.
Chaiken oscilator uptrend
MA broke 50 dma; still below 200 dma etc.
Downtrending 13d RSI resistance broken, now acting as support. New uptrending RSI touched support 4 times indicating validity and strength.
If you look at all the critical lines crossing at this point, it seems to me that we are at an auspicious moment with significant upside potential.
Disclosure: opened a long position Friday.
Any comments or criticism gladly received.
Ocote |
