Investing idea

The India Fund (IFN): Technical Analysis

2007-04-27T14:52:00.000-07:00

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

2007-04-27T14:13:00.000-07:00

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)

2007-04-27T08:39:00.000-07:00

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

2007-03-23T08:08:00.000-07:00

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

2007-03-19T08:34:00.000-07:00

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

2007-03-15T08:02:00.000-07:00

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?

2007-03-14T21:20:00.000-07:00

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.

2007-02-15T21:37:00.000-08:00

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

2007-02-15T21:21:00.000-08:00

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

2007-01-31T17:40:00.000-08:00

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.

Sirius Satellite Radio Inc (SIRI): Chart Analysis

2007-01-14T15:18:00.000-08:00

SIRI has been trading in a narrow range of $3.50 to $4.00 for the past 6months. Recently, it moved higher on double the average volume. I noticed a couple of interesting things that I thought I could bring to your attention.

1. MACD Divergence: While SIRI formed a lower low in late December trading, I noticed a divergence in MACD as shown in the chart.

2. OBV: The 'On Balance Volume' has been on the upswing since Sept 06.

Given these indications, there is a good possibility of SIRI moving hiher from here. Resistance can be experienced in $4.75 and $5.50.

Affymetrix Inc: Target 30

2007-01-14T15:15:00.000-08:00

Affymetrix is currently trading under the 50 & 200 DMA and has not been able to move past this barrier. Last week, after its earnings release, it seems to have regained its momentum. AFFX now has a good probability to move above the moving averages and hit the next resistance at $30.

Affimetrix may well have the potential to go beyond $30 but my current target is set at $30. Good Luck.

Level 3 Communication LVLT: poised to move higher

2007-01-07T16:29:00.000-08:00

LVLT has appeared recently on my blog (LVLT Chart Analysis) for a potential move higher. I am substantiating my point with a 5 yr weekly chart and a shorter term chart.

You can see for yourself that the recent gains have come on relatively strong volume. Looking at the longer term chart, it appears that a break above $6.00, the stock can easily touch $8.00.

This stock is defenitely worth a watch in 2007.
Good Luck.

Watchout for Cisco (CSCO)

2007-01-07T16:15:00.000-08:00

Cisco Systems Inc has been on a roll since August 2006. Presented below is the 3 yr weekly chart. As you may see, it is near its resistance of $29. Also notice that the most recent upside has come on light volume. Just a cautionary note. There is a good chance for CSCO to consolidate and recede.

Welcome 2007

2007-01-07T16:07:00.000-08:00

It has been a great run during 2006 for the bulls in the Stock Market. Hope you all made some money. Lets hope 2007 does the same.

I wish to write to my readers that the frequency with which I post will come down. You must have already noticed this during december 06. I switched to a new job and I think I wont be able to devote as much time to blogging as earlier but I cant be kept away from the stock market. I shall be watching my positions everyday and if I find something interesting, I shall try to post. Most likely, my postings will be during the weekends.

Thanks for your support.

2007 Watchlist: ONNN

2006-12-27T14:34:00.000-08:00

On Semiconductor is beautifully positioned to move higher. This is one of the stocks to watch out for in 2007. The high volume breakout above the long term trendline is an indicator and so is the OBV.

Vonage (VG): Time to buy?

2006-12-15T17:27:00.000-08:00

Vonage's IPO was a disaster. Whoever had invested during IPO and still holding it are under water. Current technical analysis may provide some relief. VG seems to be attracting buyers at $6.5 level. Recently it moved above the declining trendline and above the 50 DMA on strong volume. Other factors that are in favor of a move higher is OBV reading and RSI divergence. If someone is considering getting involved in this stock, a potential buy point will be $7.31 with a target of $9.00

Good Luck

Amkor Technologies (AMKR): Potential buy point before a possible big run

2006-12-14T09:13:00.000-08:00

Presented above is a 8 month chart of AMKR. This stock has more than doubled in about 2 months from <$5 in October to > $10 in December. Now, that is a big move in a short duration. Given the history of prior resistance in the $10.5 area, AMKR is experiencing a pull back. I am expecting (expectations need not come true) a pull back to the gap-up point of $8.25. If you notice the blue line drawn in the chart, there is a history of support at this level. This area also coincides with the 200 DMA. All this makes the $8.25 area a more important reflux point.

Assuming it moves up from the $8.25 area, one can make a case for a inverted head and shoulder pattern. but it is too early to say anything. I am letting readers know about this so that one can get involved in AMKR based on one's own analysis.

Good Luck.

Emdeon Corp (HLTH): Bullish Technical Analysis

2006-12-14T08:45:00.000-08:00

Observing the stock's action since 2000 and the way it has shaped up so far, it paints a compelling bullish picture. HLTH has been facing resistance at $12.50 since 2003. Since then it has attempted to cross this barrier in-vain but the frequency with which it is reaching the mark with very limited downside movement provides a bullish stance. Looks like the stock is ready to make its big move. Notice that the volume has picked up in recent weeks.

A buy above the resistance of $12.50 on increaseing volume would be safe. Initial target can be $16.

Affimetrix (AFFX): Bullish Flag

2006-12-08T20:56:00.000-08:00

Affimetrix is consolidating just below the 200 DMA as resistance and maintaining a position above the gap that was formed during late october. This is a bullish consolidation pattern after the big upside on high volume. A move above $25.50 and close above the 200 DMA on high volume will confirm the trend. Keep this on your watchlist.

Level 3 Communication (LVLT): Chart Analysis

2006-12-08T20:47:00.000-08:00

LVLT seems to have formed an inverted head and shoulder (bullish) pattern. The stock is maintaining $6.00 as resistance. A break above this level will take it to higher highs. I have mentioned that LVLT has a potential to move higher when this was at $5.25. Check out this post for details.

CV Therapeutics (CVTX): Technical Analysis

2006-11-27T17:42:00.000-08:00

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

2006-11-27T17:24:00.000-08:00

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)

2006-11-27T14:05:00.000-08:00

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

2006-11-26T21:28:00.000-08:00

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.

OVTI will be acquired for
	$16 and above
	$18 and above
	$20 and above
	$22 and above
	$24 and above

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