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Drawing lines on our stocks

August 27, 2008

Here is a look at some of the stocks on our list with just lines.  Trend, support, resistance.  Patterns.  Volume.

This list is a bullish watchlist, so lends itself to a bullish bias with most of these stocks.  However, there are some very reasonable bearish setups here as well.  Obviously, being in line with the broader market is where we want to be.  As always, you be the judge.

ABT forming another bull flag.  Each big surge higher has come on decreasing burst of volume as it nears its all time high from January.  Nevertheless, the trend is still in tact and this pullback has come on low volume.

(Click on images to see them grow.)

APH is volatile, to say the least.  Nevertheless, it had a major move on monster volume in mid July and after testing that opening level once it is trying it again.  This would be a somewhat aggressive entry, but it could also be a nice power-packed ascending triangle in the making.  Regardless, with a stop at 46 or so and a target of 52, you’ve got at least a 1 to 2 risk/reward ratio.

BUCY – Long term trend up.  Intermediate term trend down.  Short term trend up.

If and when the short term trend support line is broken, getting back in like with this nice downtrending intermediate term channel could be a nice ride down to 55 or 52.50 where the long term support line would be waiting in a couple months or maybe a touch less.

FCN is looking tired.  Either it blasts through this resistance level on huge volume for a nice buy trigger, or it’s going to poop out here after one too many failed attempts at getting through there.  The crazy reaction to earnings on the 6th doesn’t exactly paint the picture of cool and confident stock holders.  Either way, I’ll be it’ll be a wild ride down or up.

FLS is another one that looks like it could go either way wildly once this range breaks.

FSLR has put in an intermediate term lower high and formed a pretty stable and well defined sideways range on gradually lower volume.  I guess that volume theme is a bit old and perhaps not all that relevant considering the time of the year.  Swing traders might play this one back and forth between support and resistance until it breaks out up or down.  Of course, given the long term chart and the solar story, I’ll be looking for an upside breakout.  But with oil possibly going lower, who knows?

MPWR is like a wild stallion.  Sure, the snapback from the recent high has been just as quick as the surge up there, but the volume doesn’t seem to show people bailing with quite the panic as the conviction of the buyers bringing it up in the first place.  Nice risk/reward entry from here above 24 anyway.  First target 28-29.

NOV shows lots of potential for any number of scenarios playing out.  Whatever the course, there are a good, clean lines to use for entry/exit points.  The only thing I’ll point out is that the surge the day after the earnings call and two days last week were on pretty high volume compared to most days.

OSIP may have gotten a bit ahead of itself in recent run up in July.  I spy a failed breakout in the form of a double top.  Resistance here at 50 now?  Maybe a touch early to tell.  But something to watch, for sure.

PQ – Double bottom reversal.  If oil decides to rally, this could be a nice entry to ride along with it.

PRXL is a mighty stock.  I think the weekly chart tells the story a bit better.

SOHU Symmetrical Triangle – Nice decreasing of volume as the volatility contracts

WAB – Consolidating in a clear sideways range after moving higher on some very high volume jumps.  Volume calming down as the stock has moved sideways.  Watch for a breakout or a breakdown of what could be a potentially forming double top.

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