Finisar (FNSR): Chart Analysis

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It must be obvious from the chart above that I see an inverted head and shoulder bullish pattern on FNSR. Notice the action during the last few days. After finding support on the uptrend line, FNSR cleared the 50DMA. After some consolidation below the 200DMA, it eventually cleared the 200 DMA on relatively higher volume. It is currently consolidating just above the 200 DMA and below the long term downtend line.

Notice that the RSI is very strong. Keep this on your watchlist for a possible break above the declining trendline.

Juniper Networks (JNPR): Short Candidate

Click on chart to enlarge image

JNPR is experiencing $17.50 as resistance, what with the 200 DMA looming above and a history or prior resistance at the same area. Today, it formed a DOJI. Currently, Window dressing activity is being carried out by the funds and it may stay at these levels until tomorrow (end of September).

I think there is a strong possibility of a pull back and this makes JNPR a juicy short candidate. Support can be expected at $16 and $15 area.

Good Luck.

CREE Inc: Chart Analysis

CREE has been retreating after having its date with $20 mark but finding support along the trendline. Lately it was able to hold the 50 DMA as support and rally to the $20 level. If the $20 level is cleared (on high volume), it has the potential to fill the gap. One other reason for being bullish is the improving RSI.

Gilead Sciences 52wk high on average volume

Gilead Sciences broke out to new 52 week highs but the move did not come with high volume. To me, this is a concern. Usually while testing the resistance or just before breakouts, one can expect activity from both shorts and 'new'longs. As the stocks move higher, the shorts try to cover in order to minimize the loss and the new longs get in not wanting to miss the boat. This creates participation from both parties resulting in higher volume. This has not happend...or atleast the volume doesnt paint that picture.

This raises a question. Is the break-out sustainable? We'll know hindsight but lets follow the stock as long as the trend is intact.

Good Luck.

ISE breaks out on high volume

click on chart to enlarge

I have been expecting ISE to breakout for couple of weeks. Finally it did. The chart is painting a bullish picture by registering big and increasing volume towards the breakout day. One can expect some resistance at $50 level followed by $53 level.

I had mentioned in my earlier article (posted on Sept 15) that it appears to have formed an inverted head and shoulder pattern and is ready for break out.

Broadcom (BRCM): Potential Upside

Broadcom has been acting well lately. After moving above the 50 DMA in mid August, it has consolidated in a tight range. Today it broke out of the neckline of what I see as an inverted head and shoulder pattern. Once the $30.25 resistance is broken, the next significant area of resistance is $32.50.

China Medicals (CMED): Chart Analysis

China Medicals (CMED) rose sharply on high volume during mid-day. It continued its rise and ended the day with a 11.60% gain on 4 times the average daily volume and thereby breaking above the 50 DMA. The next resistance point is around 24.5 - 24.75 area. Also note the positive RSI divergence.

Inventive Health: Chart Analysis

Inventive Health (VTIV) broke above the resistance point of $32 today on high volume. It is closing in on all time highs of $34. This is the next potential resistance to watch out for.


Remember, I have been bullish on Inventive for quite sometime, inspite of the general market weakness. My articles on July 13 exposed this as a potential long candidate. I reiterated this on Aug 13 when it moved on high volume breaking the 50 and 200 DMA. Then again, reiterated on Aug 21.

Good Luck

Boyd Gaming Corp: Double bottom base

BYD has been testing the $38 resistance level for the third time since its break below that level of support. Observe that is has formed a higher low and currently challenging the resistance. Today's volume approaching this level was very high suggesting that the possibility of a break above this level ($38) is high. Stay tuned.

Allscripts Healthcare Solution: Potential breakout

After a $3 gain followed by 6 weeks of consolidation, BYD is showing some life with increased volume and trading above the upper trend line. A close above the $21.50 will confirm a break above.

Intl Securities Exchange ISE: Inverted Head & Shoulder pattern

There are couple of ways to look at this chart. One is the red (down)trendline and the blue line which point has been acting as resistance so far.

Considering the red (Down)trendline, todays big volume move was a break out move.

Considering the blue line of resistance, one can notice an inverted head and shoulder pattern.

Either way, ISE is looking bullish and more gains can be anticipated in the days to come.

Have a good weekend.

Gilead Sciences: Watchlist

GILD broke the short period consolidation (marked in blue) on increasing volume to gain 2% today. Wait and watch if it takes out the $65 resistance (marked in red). Its good to observe that it has been holding above the trendline.

Boring day

Cognizant Technologies breaks higher

CTSH, after consolidating in the $68-$72 range broke above the $72 point today on rising volume. The Chart looks bullish. Notice the big moves are coming with good volume and the consolidation is on low volume. This bodes well for CTSH.

ICICI Bank (NYSE: IBN)

ICICI Bank (IBN), today cleared the 200 DMA average on rising volume, effectively clearing the downtrend. Notice that the 50 DMA was cleared on enormous volume (relative volume) but the move above the 200 DMA did not come close to that...though the volume was above average as indicated in the chart. The next potential resistance area is $30.

Intuit Inc (Nasdaq: INTU)

Intuit broke out of the ascending triangle today observing the 50DMA as support. It is forming 52wk highs right now. If you take a look at multi year chart, you may realize that INTU will face potential resistance at around $34-$35.

Gilead Sciences acting well

GILD has been acting well. On Friday (Sept 8), it cleared the decline (chart provided is 10 day - 15 min interval) indicated by the red trendline. Since its $2 move on friday, it consolidated by pulling back to the moving average and also maintaining the uptrend line (blue) as support. As long as it does not violate the uptrendline, GILD is fine.

GILD has been consolidating in the $61-$63 & $64 for a few weeks now. It may be time for a decisive move (My bias is to the upside).

Black & Decker Corp (NYSE: BDK)

BDK is another case of megaphone top. After making lower lows and higher highs spanning 2 years, the stock finally gave up in early August. It has recovered since then and is testing the breakdown point as resistance which also coincides with the 50 DMA. There is a good potential for another leg down.

Notice that the OBV has been declining.

Cabot Oil and Gas Corp (NYSE: COG)

It appears that COG is forming a megaphone top. Currently, COG is at the 200 DMA after failing to maintain the uptrend line (and falling below 50 DMA) . Going by the pattern formation, it appears that it may slide down further in the months to come. Also notice that the RSI is declining and does not paint a good picture for the stock.

For the time being, the stochastics indicates an oversold condition. This leads me to believe that the moving average may offer some support for the short term.

Wynn Resorts (Nasdaq: WYNN)

Wynn resorts had a wild ride today, trading in a $3 range but finished almost unchanged (well..15 cents below yesterday's close). In the process it formed a doji with long shadows on either side. If it breaks below $74 support, it may retest the 50DMA or if it takes out the resistance at $78, it may make fresh highs. Keep this on the watchlist.

Gigamedia Inc (Nasdaq: GIGM)

Gigamedia (GIGM) broke out of the 4 month base by closing above $11. Look for more upside. The stock had a nice run today gaining 13%. Watch for a pull back before the next leg up.