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*** These days I post my charts/thoughts on under the same user name BreakoutTrader *** "Charts are worth a million words." - Ralph Acampora "Having learned what folly I was capable of, I closed that particular incident." - Reminiscences of a Stock... More
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  • NOK Nokia: To Five Dollar Or Not To Five Dollar ?
    Market has not been kind to Nokia (NYSE:NOK) ever since its Feb. 11 
    announcement to abandon Symbian smartphone platform and
    dance with Microsoft (NASDAQ:MSFT) to promote Windows Phone as its
    principal smartphone platform. Nokia's stock is down 48% from
    Feb. 11 to Dec. 23. In the same period, S&P 500 is down 5%.

    NOK's price dropped below the critical $5 level many times since
    Feb. 11; the most recent closing low being a close of $4.51 on
    Dec. 19. It closed at $4.92 on Dec. 23, the last trading day before

    The following weekly chart shows NOK in a down trend bounded by
    an Andrew's pitchfork that started the week of Feb 7. Apparently
    market did not like the idea of Nokia dancing with Windows Phone
    and voted with the price actions on charts immediately and
    never looked back. For comparison, S&P 500 was up on that week.

    The chart also shows the critical range between $7 and $5 and its
    recent underperformance in relative strength vs the S&P 500
    (the lower pane).

    For NOK to be looking bullish on weekly basis, it needs to keep its
    head above $5 area and in particular, above $6.33, the high of the
    week of 11/21. If it can close above $6.33 with strength, it may have
    the chance to break above $7 resistance area. Otherwise, it would
    either continue to go down or at best become range bound ...

    Disclosure: I do not have any positions in NOK and do not plan to
    do so in the next 72 hours.

    Dec 26 9:35 AM | Link | Comment!
  • AAPL Apple: Second Time's A Charm ?
    Apple (NASDAQ:AAPL) has hit $410 and $420 resistance areas several times and
    turned back since late September. See the following weekly chart.

    It underperformed S&P 500 on my relative strength indicator 
    (the lower pane of the chart) the week of 10/17 when the stock
    closed lower for the week and remained underperformed the index
    on relative strength since then.

    Well, until this week (See the white arrow) ...

    The price actions have also been in sync with a perfectly fit up-trending
    Andrew's pitchfork from the week of 11/21.

    So would this be "Second Time's A Charm" for Apple to break out to the
    up side, regardless of the fact that every body and their mother know 
    Apple will have a blow out quarter due to the wonderful iPhone and the
    new playful Siri virtual assistant pal ?

    A look on the following daily and 4-hour charts shows Apple has
    crossed the line in relative strength on lower time frame charts.

    20111223 AAPL Daily

    20111223 AAPL 4H

    So barring any adverse actions from the general market, Apple
    has good chance to break out this time going into January earnings
    announcement ...

    Disclosure: I do not have any positions on Apple, but may initiate
    bullish options positions on Apple in the next 72 hours.

    Dec 25 9:44 AM | Link | 4 Comments
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