Papa Johns (PZZA): Technical Analysis

PZZA has been moving higher and broke above the key level of resistance on good volume. PZZA reports earnings tomorrow after market closes. Given that scenario and a high short interest in the stock, there is a potential for PZZA to rise further.
Good Luck.

CV Therapeutics Inc (CVTX): Technical Analysis

CVTX has been moving higher on good volume. After the test of resistance at $14, it is now testing the 20 DMA for support. The RSI is acting good as well.

Given this scenario, I took a look at the short interest, The shorts are not giving up their positions despite the recent run up and the short position is the highest since Nov 2005. Good reason to think that there might be an upside move after the earnings report tomorrow AH.

CVTX reports earnings tomorrow after market closes.

Adaptec Inc (ADPT): Possible Short Squeeze

Adaptec (ADPT) has been on a downtrend ever since the boom days and never was able to get above the trendline. Above chart is a 5 yr chart (weekly chart)Well, this may well be the time for it to either retest or get above the trendline. Here is my analysis.

First, during the last quarter of 2005, ADPT surged in heavy volume and has since been consolidating on relatively low volume. This gives us a potential for a upside move on heavy volume. What is the potential catalyst for that. Possibly the earnings that due out Oct 30 (after market closes).

Did you look at the short interest above..! Yes, more educated reasoning for the upside move can be the short squeeze. I was able to obtain the below stats about the short Interest at Nasdaq.com. Notice that the shorts have been on the rise and have almost doubled since last year. Yes, Thats right, The number of days it would take for the shorts to cover is the highest ever (in the past 12 months). This gives more reason to believe that ADPT will surge after earnings report (or any other good news).

Good Luck

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Tibco Software Inc (TIBX) Chart Analysis

TIBX has been acting well so far. I had mentioned earlier that it had a potential for a good run. It has been forming the ascending triangle and looks set for a break-out. Clearing $9.50 mark will bring in more buyers. TIBX has literally no resistance until $11 mark. Read my previous article. Watch out for some action here.

Genzyme Corp (GENZ): Technical Analysis

GENZ has been consolidating just below the $70 area since August. Lately, the stock is hitting the $70 area pretty consistently, which gives me a feeling that that resistance will be broken anytime soon. The fact that the OBV is very healthy and that it is obove the 50 and 200 DMA give a good feeling. Feeling doesnt matter but a price move above $70 will matter coz, it will be breaking above the resistance after nearly 3 months. Reasonable target can be $75 with support just below $68.

Dynavax Technologies Corp (DVAX): Technical Analysis

DVAX, after a phenominal run from $4-$8 has been consolidating its gain on relatively lower volume. It appears to have found support at the 20 DMA and also seems to have broken the trendline. Watch for some upside move.

Revisiting Boeing Inc (BA): Technical Analysis

Earlier, I had stated that BA needs to consolidate before its next leg up. As expected, it has been consolidating its gains since early October. The recent action in BA is that it reversed all of Friday's loss with today's gain. Notice that the 20 DMA is acting as support. A break above $83 level can propel the stock to the next level of resistance, $86 followed by $89.

Tellabs Inc (TLAB): Technical Analysis

Today, TLAB appears to have found support at the 50 DMA which is evident by the fact that it was able to rise above the moving average on high volume. With today's gain, it is near the long term (Yes, to me 6 months is long term) declining trendline. Given that the recent gains have come in heavy volume, I think TLAB will get past $11 area very soon. $13 can be a reasonable target.

3COM Corporation (COMS): Technical Analysis

COMS has had 2 high volume days including today's action. Considering that the recent downtrend has been broken and that it has consolidated in low volume before moving on high volume, I think, it has the potential to reach $5.6 in a short term timeframe. RSI is acting well.

Omnivision Technologies (OVTI): Recovering..finally

I had predicted that OVTI had reached the top on May 3,2006. It actually reversed few days after that and has lost 58% since then (considering $14 is its bottom). After the close above the 50 DMA on high volume, I am starting to feel confident. This also coincides with the downtrend line being broken. It has been consolidating on relatively low volume. I think there is a strong chance that this will break higher in the coming weeks. Also observe that the RSI is gaining strength

Next reasonable level of resistance is around $19.

Good Luck.

I-Flow Corp (IFLO): Great Long Setup

IFLO, in the weekly chart below is starting to show some strength with high volume upsides. It has been been consolidating in the $14.0-$14.5 range for a while.

The daily chart below clearly shows that it cleared a consolidation (slanting red line) and has been wanting to go higher. Today, it managed to clear the $14.30 mark on high volume. Also notice that the up days are on relatively higher volume when compared to the down days. Next meaningful resistance is at $16.50.

Good Luck.

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QLT Inc (QLTI): Ready to break out

QLTI has been consolidating for couple of weeks in the $7.5-$8.0 range. Observe the uptrend (blue) and the downtrend (red) line, It looks like it has nowhere to go but UP. Watch for resistance in $9 area.

Tessera Technologies (TSRA) breaks out

TSRA was observing the $36 level as resistance for over a year. It finally managed to break above the resistance couple of days back. It is currently consolidating its break-out. A quick retest of the break-out area (around $35.70) can present a possible pullback entry. Near term resistance can be at $40 followed by $46.

Good Luck.

LVLT: Up 13%

LVLT, which was mentioned in yesterday's article as a potential breakout candidate, today registered a 13% rise.

Sweeeet.

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FNSR up 10% on high volume

Finisar (FNSR) is up 10% today on high volume. This morning, it gapped up, tested it for support and never looked back. It has broken the high observed at $4.09 by closing at $4.12. I had mentioned about a possible upside potential in two of my earlier articles (Article 1, Article 2).

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Level 3 Communication Inc (LVLT): Potential Upside

LVLT has been consolidating after a good run. Now, $5 level has been acting as level of support. A break below this level may possibly test the uptrend line (blue line) before moving above the uppter trendline. A break above the upper trendline (red line) can invite more buyers into the stock which can move LVLT higher.

Real Networks (RNWK): Technical Analysis-Follow up

I had mentioned earlier about RNWK's ascending triangle and a potential for break-out. That did happen (but few downgrades delayed the break-out).

Click on image to enlarge chart

I wanted to present the 10 day chart (15 min interval) of RNWK to mention that the uptrend is intact. Notice the uptrend line acting as support on 3 occasions.

If you are in the stock, continue holding until it breaks the uptrend line. If you are not in the stock, a good buy point will be above $11.80.

Good Luck.

Applebee's International Inc: Technical Analysis

Click on image to enlarge chart

APPB has been consolidating after clearing the downtrend. After a retest of the downtrend line, it promptly rallied, in the process clearing the 200DMA with ease. Today, it has managed to close above $23 mark which proved to be resistance on prior occasion. Obvious resistance points are $24 followed by $25.
Good Luck

Junipter Networks (JNPR) Technical Analysis

Juniper Networks drifted below the 200 DMA on high volume. I had mentioned, towards the end of September, that JNPR is a potential short candidate. It receded to $16.50 but moved above the 200DMA on 'average' volume. Today's move lower has come on high volume and if you notice, the volume is increasing during the descent. It is not a good sign. Another not so good sign is that the RSI (leading indicator) has remained stagnant during the stock's ascent and is currently edging lower.

Dynamic Materials (BOOM): Technical Analysis

Dynamic materials broke below the rising trendline and has been climbing back on decreasing volume. This tells that there are not many buyers out there. If BOOM breaks below today's low, tomorrow, its probably headed south. The intial support will be at $29 followed by $27.

Good Luck

Sears Holding (SHLD) Cup Handle breakout

Sears Holding (SHLD) broke above the $165 resistance today on heavy volume. This has effectively not only cleared the 5 month base but a 15 month cup and handle base as well. I had anticipated this and had commented on this in my June 2006 article.

Now that it has cleared the base, watch out for more gains in SHLD. I feel the nasdaq is extended a bit after a massive rally, so expect a pullback anytime.

AAPL: Chart Analysis

I recently received a chart analysis request for AAPL...and here is my humble opinion.


AAPL, after a gap up and continuation is taking a breather. I think, if AAPL breaks support at $73, it may test the 50 DMA (around $70) which also coincides with the retest of the breakout point and the uptrend line.

Sun Microsystems: Chart Analysis

Recently I received a chart analysis request for SUNW.
Presented below is a 3yr chart of SUNW. It seems to be below the long term downtrend line with solid support at $3.50 area. A break above the trendline will put this on an uptrend. Currently, it is observing the 50 DMA as support. The OBV looks healthy.

Tibco Software Inc (TIBX): Chart Analysis

Tibco recently broke out of long consolidation spanning almost 2 years. It has been consolidating its break-out pullback in a controlled fashion. It has the potential to break the upper trendline (refer the chart above) for more gains. Notice that the OBV looks very good.

Here is the 2yr (weekly) chart of TIBX that puts the break-out in perspective. With no resistance between $9 and $11, a break above the $9 level can see the stock trade in the $11 area pretty soon. Have this on your watchlist.

Have a good weekend.

BOT makes all time highs

BOT broke-out to make all time highs on heavy volume. Look for sustained gains in BOT. Similar companies - ICE, CME and ISE are also acting well.

GOOG break out?

GOOG seems to have broken out of the 10 month long declining trendline. Good. but I dont see a positive confirmation from the volume. Is this break out sustainable?

Finisar (FNSR): Chart Analysis Update

FNSR has been consolidating well under the trendline. A break above the $3.80 (resistance for the past 3 days) will put it above the trendline and resistance. Chart shown is a 7 day chart (15 mins interval).

Check out my earlier article that provides FNSR chart analysis with a 6 month chart.

ICE breaks higher

Intercontinental Exchange broke higher yesterday and continues to move higher on good volume. The OBV indicator also confirms the inflow of money coming in. The volume during the past 3 weeks has been impressive. More gains to come.

Boeing breaks higher

Boeing (BA) cleared the downtrend by moving above the downtrend line indicated in the chart. The volume has picked up as it broke higher. Keep this on your watchlist for possible moves higher. Also notice that the RSI is very healthy.

I would wait for a pullback closer to the trendline (for a possible test) for a long entry.

Conor Medsystems Inc: Chart Analysis

CONR was trading range bound between $24 and $28. It broke down below the channel, on high volume and is forming a bearish pennant. (what is bearish pennant?) There is a possibility that CONR will break below the formation for a test of lows of $22. Longer term chart (not shown) indicates that it has broken the uptrendline. Today it formed a doji with long upper and lower shadow. This shows indecisiveness among the traders. Watch out for a move above or below the pennant formation.

CMED showing signs of reversal

Today, CMED formed an inverted hammer/gravestone doji type candlestick. This type of action provides a clue that reversal is near. If we can have a confirmation of the reversal tomorrow, CMED has the chance to rally to $24.25 level.

Observe that the big moves was accompanied with big volume and the pullback (consolidation) has been on low volume. This gives an impression that the bulls are in control.

Gilead Sciences & my hunch

I had mentioned in one my earlier article that GILD has broken out of the base on AVERAGE volume. I was not impressed with this and thus indicated my hunch. Last week's hunch is today's reality.

GILD fell more than 10% in the past 2 days.

Moral: Be suspicious of stocks that break-out on low or average volume.