Monday, July 03, 2006

Watch List - EnCana (ECA), Silicon Labs (SLAB)

SLAB looks like it wants to move higher here. It had a strong finish in Friday's AH trade.



This is a picture of EnCana Corp. (ECA) which trades on the TSX. The U.S. chart has the same characteristics. Based on its recent trading channel, ECA is starting to look overbought.

Click on charts for larger view.

2 comments:

AJ said...

Hi Jamie,
Hope you had a wonderful Canada Day.

Was looking at the daily SLAB chart, and noticed a hanging man being formed on 6/30. Well first of all, do you think it is a hanging man, and would you think it could be a sign that it might go lower. It did go lower on Monday, but I guess it was due to the shortened trading day.
Thanks,
AJ

Jamie said...

Thanks AJ, and a happy 4th of July to you.

Good eye. Yes, that was indeed a hanging man. SLAB may pull back to support and create a buying opportunity. I see a lot of positive divergence on the chart and I think it may be forming a bullish base. The next few sessions should give us a clearer picture of the market and SLAB as well.