The India Fund (IFN): Technical Analysis

The above chart is a 3 year chart. As you can see, IFN is holding the long term uptrend line as support while maintaining the downtrend line as resistance. IFN is and has been under consolidation for sometime now. If we were to consider the MACD divergence, it indicates that the possibility for IFN moving higher. Keep this on your watchlist.

Gold ETF (GLD): Chart Analysis

This is a 1 yr (weekly) chart of Gold ETF (GLD). As you can see, GLD has cleared its downtrend (Red line) and subsequently found support at the rising trendline (Blue line) which also coincides with the 50 SMA. The break above the downtrendline also appears to be a break above an inverted head and shoulder pattern.

The volume seems to indicate that the price will move higher in the next few weeks. A good entry point will be in the range of $65-$66. Good Luck.

Daystar Technologies (DSTI)

In my March 15 post on DSTI, I had mentioned that this is due for consolidation but positioned to rise on a long run. After meeting with resistance at $5.50 and consolidating for a few weeks now, it is currently trading at $4.30. As you can see in the chart above, it is testing the uptrend line and downtrend line for support. As mentioned in my earlier post, I think this area provides a good entry point. If volume was an indication, the price will soon follow suit.

Omnivision Technologies (OVTI): Technical Analysis

Omnivision (OVTI) has been on a long downtrend. The volume seems to be disappearing. This months volume is the lowest volume I have seen in months. Aslo notice the MACD divergence. While the divergence is to the upside, the price is moving lower. This usually suggests that the bottom is near and one can expect to see OVTI going up from here.

Short squeeze:

Notice that the short interest in OVTI has been inching higher every month since last year. Short squeeze is a possibility.

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Updated on March 24 after hearing the takeover rumor.

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Gigamedia ltd (GIGM): Technical Analysis

Gigamedia has been on a roll for the past year. I think it has had a good run and its time for a pullback. My thinking is based on the following charts. First, the long term chart (2000-2007). It has reached the level last seen during the tech bubble burst. Price has memory and this is one reason for a strong resistance here. Remember, I dont analyze stocks based on fundamentals..this is pure technical analysis.

The next chart is a short term chart (1 yr). It shows a nice uptrend with higher highs and higher lows but a closer look at the MACD and OBV paints a cautionary picture. Notice the MACD divergence. While the price is making new highs the OBV is not.

I would stay away from GIGM for now and may be consider shorting if the uptrend line is broken.

For those who are Vehemently bullish on GIGM, please visit one of my earlier article on OVTI that sounded a similar alarm but was brushed aside (See comments section). OVTI is yet to recover.

Daystar Technologies (DSTI): Money flowing IN

The above chart is a 10 month chart of DSTI. The stock has nearly doubled in 2007 but then if you see where it has come from, its not a pretty sight. Lets analyze how it may perform in the coming months. Does it have the fire to break above the downtrend line and resistance at $5.50?

Looking at the OBV, I would bet this stock will go higher. With the stock testing the resistance and the downtrend line, it may not go higher now, but after few weeks of consolidation. I would be a buyer of this stock when it comes closer to the uptrend line (blue line).

Watch out for DSTI.

Travelzoo (TZOO): Will it move higher?

Travelzoo stock has been in consolidation mode for the past 8 months with visible resistance at $36. The recent shakeup in the market has not disturbed the stock much. Also, the OBV continues to rise while the stock continues its holding pattern. Its usually said that the price follows volume. If one was to believe this, TZOO will soon break out.

Qualcomm Inc (QCOM): Caution adviced.

Qualcomm's chart is an intersting one. Shown above is a 3yr chart. While considering a shorter time frame (say 1yr chart), it appears attractive. It seems to have cleared the 50 and 200 DMA with increasing volume. There was a follow through day as well on strong volume. While making investing decision, I always check at a longer term view as well. Expanding the view to a 3yr timeframe, it appears to be forming a Head and Shoulder pattern. The shorter term consolidation has not broken out either way...it is still continuing to consolidate.

I am totally not impressed with the OBV. Caution adviced.

Broadcom (BRCM): Chart Analysis

Presented above is a 12 months chart. It has been a long 12 months for BRCM. As indicated by the trendlines, it appears that BRCM had cleared the longer as well as the shorter term trendline. I see the activity during mid-nov through early Feb as a consolidation area. It recently broke out of the range on noticably higher than normal volume. BRCM faces resistance at $37.5 but given the recent action, it should be able to move beyond that with ease. The next stop may well be $47 area with minor consolidation on its way up.

Cadence Design Systems (CDNS): Chart Analysis

As you can see from the chart above, CDNS has formed a ascending triangle over the past 5 years. The money seems to be flowing into the stock as indicated by the OBV.

Generally, it is believed that price follows volume. The volume seems to be picking up over the past couple of months. In the chart above, you may notice that it has broken above the consolidation range and is poised to move higher.

A reasonable entry point can be in the $18.60 area (It may or may not reach this price...be your own judge) with an exit at around $24.00 which also happened to be a resistace in early 2002.