CV Therapeutics (CVTX): Technical Analysis

CVTX has been consolidating its gains in a very controlled fashion. I find this attractive due to two reason. one, the MACD Divergence and two, Improving OBV. It is currently at the 50 DMA. Based on the recent action and the technical analysis, I find it attractive here (today's close: $12.07) and has the potential to quickly test the 200 DMA (around $15.50).

Royal Gold Inc (RGLD): Technical Analysis

Technically speaking, RGLD is looking attractive with its MACD Divergence and improving OBV. This tells us that RGLD is being accumulated and is soon to move higher. On a closer look, it appears that it is experiencing resistance at the 200 DMA level. Breaking above this, RGLD can quickly move higher. Add this to your watchlist. Potential entry point can be $30.20

Aaple Computers (AAPL)

Aaple has been going from strength to strength. Looks like AAPL is an example of "buy the rumor and sell the news". Last week, it was moving up based on rumors of iPhone. After brisk sales of Aaple's products during the thanksgiving weekend, it is time to sell on the news. I think that AAPL can decline to $86, which also marks the highs of Jan 06. Lets see if this provides support.

Advanced Micro Devices (AMD): Technical Analysis

After the gap down in mid-Oct, it has been consolidating in a tight range while the OBV has shown some positive signs. Usually, the volume preceeds the price. Going by the OBV reading, there is a potential for a price surge. Keep it in your watchlist.

Level 3 Communications (LVLT): MACD Divergence

LVLT has been consolidating its gains in a tight range between $5.2 and $5.6. I now see a MACD divergence that suggests that selling is not that agressive as earlier. The price is forming a lower low while MACD is not showing a lower low. Watch out for some upside movement here. The immediate resistance is at $6.00

Affimetrix Inc (AFFX): Technical Analysis

After a high volume high percentage gain of almost 20%, AFFX has been consolidating its recent gains. Low volume consolidation when compared to high volume price spike always paints a bullish picture.

Currently, It is maintaing its position just below the 200 DMA. Today, it bounced off of the 20 DMA. The near term resistance is $26.85. Breaking above this area, AFFX can quickly move towards $30 followed by a potential gap fill which gives us a target of $34.

Good Luck.

Nighthawk Radiology (NHWK): Poised to move higher

NHWK broke above the $20 resistance late October and has been consolidating its gain between $20-$21. Based on the tight consolidation and today's positive finish with volume increase, the probability of NHWK going higher is good. Resistance can be expected at $24.

Novavax (NVAX): Chart Analysis

NVAX, based on my earlier post, should have collected handsome gains. As you may be aware, NVAX presents its earnings report on Nov 14 (before market opens). I was thinking as to how would the stock react. Here is my analysis for possible upside movement.


As you may see from the chart above, NVAX had formed an ascending triangle early this year before it broke out and almost doubled in value. If you notice the short interest action (You can obtain the short interest data from www.nasdaq.com), just preceeding the break out, it is clear that the shorts were building up as it broke out. The situation, today, seem to be similar. The stock has formed an ascending triangle and the shorts have been building up for 4 months now. We have already seen a day of high volume, high gain action. Is there more to come? Is the earnings a possible catalyst? Based on the number of shorts and the stock action, it appears that NVAX is ready for another short squeeze.

Good Luck.

Broadcom Inc (BRCM): More Upside?

I have provided BRCM in shorter and longer term perspectives. Here is the shorter term picture.

BRCM seems to have broken above the 3 month resistance of $31 on relatively higher volume. Today's close falls in the resisntace area of the 9 month declining trendline. On a shorter timeframe, BRCM seems have broken past the ascending triangle. Notice in the chart above, BRCM violated the ascending triangle formation briefly, which leads me to think if that was a bear trap? Also observe that the OBV has broken above. Could BRCM break higher. Lets see how it unfolds. Meanwhile, here is the longer term chart of BRCM.

Notice that the $31 area is a significant area due to prior history of resistance and support in the same area. We'll have to wait and watch the follow up action of today's move.

Omnivision Technologies (OVTI)

OVTI has been testing the trendline (as shown in the chart) and has been meeting with resistance. On a postive note, the tests have come on higher volume. With a strong RSI and MACD divergence, I have a feeling that it will break higher shortly.
Good Luck

CMED Technologies (CMED): Upside potential

CMED looks ready to move higher. $26 appears to be a high resistance area right now. Today, it cleared the 200 DMA on above average volume but the volume was not quite impressive compared to earlier high volume days. If you take a closer look, it has tested that area thrice in as many weeks. Gives me a feeling that CMED wants to go higher. Short term target is $28 followed by $32.

Telik Inc (TELK): HUGE Short Interest

TELK reports earnings after the bell. Watch out, it has a huge short interest. A little bit of positive news will send the stock to skyrocket.

Novavax Inc (NVAX): Chart Analysis

NVAX has been forming an ascending triangle with 200DMA acting as resistance but it is finding buyers at the increasing trendline. One can play it 2 ways. One: Buy it as close to the increasing trendline as possible with tight stop or two: Breakout play. The immediate resistance is at $5.20 followed by $6.00