CMCSK is forming a bullish flag pattern which held support on a closing basis today.
If the SOX continues to bounce, NVDA is well positioned to retest its broken trendline.
If semis continue to rally, BRCM should get a nice bounce here after all this selling. Look for an uptick in volume to move price above this consolidation range. But, if it can't close above the 10 day EMA, it will be a perfect setup for the next leg down.
The 60 minute view shows a nice shallow base and a series of higher lows. Watch the ADX as it appears poised to crossover.
4 comments:
Good call on NVDA. The upgrade this morning didn't hurt! ^_-
Unfortunately, I was on board for most of the move on that one but my portfolio managed to still end the day up a couple percent.
I was wondering what you thought of out-of-favor sectors where stocks are floating around 52-week lows. Specifically I am talking about the videogame industry (ERTS, ATVI, THQI) and healthcare (CI, WLP, AET, UNH). Is it a good idea to buy these now or wait for a upwards trend confirmation?
Bah, that was supposed to be "wasn't on board". Need an edit feature here. :)
Hi JB,
On morning gap up plays, I look for stocks that are trading in a fairly narrow range in pre-market, and I place a buy stop order 5-10 cents above the pre-market high. See my Trade of the day post for BRCM. I look for high volume on the open. If my buy order gets hit, but the first 5 minute bar does not close above the pre-market high (usually forms a long upper shadow), I look to exit with as little pain as possible because this usually means that the breakout has failed and the gap will be filled.
Good luck with your day trading!
Hey monkeydust,
I was feeling bad about not having more open positions this morning when the market took off, but I didn't want to chase, so I watched the laggards to see if they would hop on board. I was lucky to be able to get in on AAPL's power move this afternoon.
I'm not averse to buying lagging sector stocks, but timing is everything. I like the recent move in telecom stocks (market laggrds over the past few years) and specifically CMCSK over the past month or so. I will have a look at the stocks you mention and get back to you soon.
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