Chicago Mercantile Exchange (CME): Double Top

CME after observing resistance in the $500 area, pulled back but could not pierce the $500 mark, thus forming a lower high. In the last few days, it formed a lower low as well. That puts CME in a bad position. Currently, it is observing the lows established in May and 200 DMA as support. My feeling is that it will get a slight bounce (to $450 level)and eventually fall below the 200 DMA. Add this to the watchlist.

Good Luck.

RealNetworks Inc (Nasdaq: RNWK)

RNWK was forming a higher low with resistance at $11.00. Today, RNWK closed above this level with relatively higher volume. Today's higher high and a close above the resistance on increasing volume is a possible indication of the stock going higher.

Good Luck.

Cognizant Technologies (Nasdaq: CTSH): (My 100th Post)

Cognizant technologies, broke out in the first week of august after forming a cup and handle pattern. It quickly came back to fill the gap and in the process tested the 50 dma for support. The volume was high on days when the stock trended higher and low during consolidation phase. This is a bullish looking chart. Observing the pivot point as support, today, it again rallied and closed near to the 52 wk high. I think CTSH is poised for further upside.

Considering the rise from $64.65 - $71 ($6+) followed by a flattish consolidation, there is a chance for the same measured move. That gives us a target of $74 ($68+$6).

Good Luck.

PS: I am having trouble uploading the chart. I shall keep trying.

My 100th Post

This also happens to be my 100th post in the blog. I started this blog with an idea of sharing my thoughts. While it has been a very enriching experience posting, it has been an excellent experience reading my fellow blogger's views and technical analysis. I wish to continue blogging as long as I can contribute in a meaningful way.

Infosys Technologies (Nasdaq: INFY)

Infosys Technologies (INFY) has been acting well despite the weak market (which has recovered and acting well lately). The chart presented above is a 10 day chart (15 min interval). It has rallied from $40 to $44.5 and it is has been consolidating for 4+ days and it looks like a cup and handle to me. I am anticipating (I may be wrong) a break above $45 either tomorrow or the day after. If it break higher, the move could lead us to $47.50 based on the measured move prior to the consolidation.

Inventive Health (VTIV): Technical Analysis

Reiterating my mention on Aug 13, VTIV bounced off of the 50DMA and 200DMA on increasing volume. It may consolidate a bit at $30 range and is well positioned to rise further. Potential areas of resistance are $32 and $33.

I am having trouble uploading images. I guess you will be able to figure this out by pulling the VTIV chart.

Good Luck

Duke Energy (Nasdaq: DUK) - Chart Analysis

As you notice in the 1 year chart above, DUK has formed an ascending triangle and broke out in July. Currently it is observing the 50 DMA and the prior resistance of $29.50 as support. The 'OBV' indicator is showing a healthy inflow of money.

The above chart is a 10 day chart (15 min interval). The $30.05 area has been proved to be resistance for during the earlier week. More times the resistance has been tested, there is good chance for breaking above that point. I feel that there is a possibility for DUK to go beyond $30.05 area on Monday. Possible target $32.5-$33.00 area.

Good Luck.

Daktronics (Nasdaq: DAKT)

Daktronics is a perfect example as to why people should avoid trading its stocks before earnings release. Just a day prior to the ER, DAKT looked like a ascending triangle break out but look what happened the next day. It gapped lower and closed down by 28%. Loosing 28% is not a joke. Stay focused and watch for the company's earning calendar before making your move, particularly, in this kind of a choppy market.

OSIP & GILD

Meanwhile, few of my recent picks, OSIP and GILD broke above a tight consolidation range. Watch for more action in these in the days to come. Both have formed a Shooting star candlestick. I would wait for some consolidation before a move higher.

Read my earlier OSIP blog article and GILD article.

Illumina Inc (ILMN) Follow up

Couple of days back I had mentioned that Illumina (ILMN) may get a bounce but that never happened. It violated the bullish gap and broke down. I was watching the action all day and noticed that the next possible support was at $32 (50DMA). Picked up a few at $32 and dumped it this morning for a small gain. It broke down again. This time it violated its 50 DMA (intraday) but managed to recover. This will remain in my watchlist.

Investor Psychology

Regular visitors to my blog must have noticed the poll on the right navigation bar. It is interesting to note the results of it (July 12 and Aug 15). The Nasdaq is pretty much on the same spot as on July 12 (actually, a tad higher) but, now, a majority of the investors (going by the poll results), feels that the market has reached a bottom.


PS: The poll has been active since mid-june but the counter was reset on July 12. Therefore there is no overlap of the votes casted.

I personally feel that market is still in a downtrend. The Nasdaq inching up is only a temporary relief. There are a number of overhead resistances still in place and I bet it will be tough to overcome. However, I am not really concerned which way the market turns as I am comfortable trading both ways.

Redback Networks (Nasdaq: RBAK)

Redback networks (Nasdaq: RBAK) was consolidating and had carved out an ascendinig triangle. It cleared the 50DMA and 200DMA today on increasing volume by the day. (1) in the chart above is the downtrend line and (2) represents the ascending triangle. Position above the moving averages, technically puts it in an uptrend. May be, there is a day of upside left but I am expecting a consolidation before making similar big moves.

Illumina Inc (Nasdaq: ILMN)

ILMN is now testing the bullish gap that was formed on 7/19. There is a good chance for a bounce. The stochastics is suggesting an oversold condition favoring a technical bounce.

InVentive Health Inc (Nasdaq: VTIV)

VTIV cleared the 50 DMA, 200DMA and the declining trendline last week. Currently it is retesting the trendline and the moving averages. I am expecting a bounce off of these levels to eventually break the $30 barrier.

Blog posting pause

I am not sure if Big Ben would pause hiking interest rates but I have decided to pause posting to my blog for a week.

I will be travelling next week. Therefore, I will not be able to post until Aug 13. Be sure to visit my blog on Aug 13 or 14. In the meantime, you may visit my fellow blogger's blogs mentioned in the 'Links' section.

Happy trading..!

Nasdaq: Technical Picture

Nasdaq turned lower after touching the 50 DMA. So long it has been a good tussle between the bears and the bulls with the bears having an upper hand so far. The technical picture as shown in the chart above indicates that the RSI has a positive divergence while the price action has been lower. The Stochastics also indicate that it is not at extreme overbought condition. This gives me a reason to think that the beaten down nasdaq may recover for a week or two. As we all know the job report has not been very impressive and lead us to think that the feds may soften their stance on increasing the interest rates. Big Ben's comments on Tuesday, Aug 8th may act as a catalyst for the battered bulls thus providing a reason to rally.

Gilead Sciences Inc: Chart setup

GILD has been consolidating for almost 3 weeks, predominantly, in the $60-$62 range. Looking at the 10 day chart above, it seems to have broken the short term trend with a clear support established at $60.50. If it is able to maintain the break above the trendline, it can test the resistance at $65.00

China Medical Technologies (Nasdaq: CMED)

CMED has been on decline mode for a few months. It has broken above (on a closing basis) the 50 DMA for the first time since it started its decline in Feb 06...effectively, clearing the downtrend. The immediate term resistance is at $24.50.

Starbucks Corp (Nasdaq: SBUX) guides inline. Shares drop.

Starbucks guides in-line and the market takes it to task. SBUX is down 9% at $33.30 during after hours. Assessing the weekly chart of SBUX, it has not yet broken the long term trend line. Currently it stands at $27.00 (give or take few dimes). It remains to be seen if the stock shall touch these levels.
My earlier articles (June 27, July 12) on SBUX were bearish based on the OBV.