Sunday, January 16, 2011

Reader Requests - Part 2

Here is the second part of readers requests. For first part, click here.
BEXP - Love the consolidation in this one. On breakout watch.

PVH - Been in a downtrened for over a month. Notice the relatively low volume on the up days during the last week. Wouldn't want to be long this one even if breaks the trendline due to falling MA(20) overhead. Much better plays out there.

ASH - Coming off a nice consolidation. Would like to see a break of the marked trendline on volume.

TXN - Gotta love this one. Nice rounded consolidation. Volume seemed to be picking up on Friday and the close above 34 was crucial. On breakout watch.
GSIT - Overbought. That doesn't mean it wont continue go higher but just that I would trade this as a day trade rather than a swing trade here. Nice close on Friday but the volume seems to be decreasing. Keep moving stops higher if you already in this one. Whatever you do, don't short a stock like this with so much momentum behind it! It will eventually go down but don't try to call the top.

NVDA - See comments on GSIT above. Looks like it has another move up in it yet.

NIFTY - This one could be used as a text book example of a trendline. The same trendline acted as resistance in January, April and September. On finally being broken in September, the same trendline now became support and was successfully tested in October. The trendline was once again broken in November and acted as resistance on December, thus providing a wonderful opportunity to go short. 28 is important support from last March-April and also due to presence of MA(200). One could expect to see a bounce here but mostly, it will be a short term bounce. Keep a close eye on the volume of the bounce if it happens. Don't want to go long here. Best to watch from the sidelines on how the battle of MA(200) turns out and then enjoy the spoils of war with the winner.

Am done for now but there are still a few more charts left. Will post Part 3 sometime later today.

Take care and good luck!

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