Technical Analysis: XLNX, BIIB, GOOG, INTC
July 15, 2009
By Thomas H. Kee Jr.
Chief Investment Officer, Stock Traders Daily
Risk control: Control your risk and realize opportunities regardless of market direction or economic conditions, and do it without sacrificing time or lifestyle. Trend Tracker. This is the most powerful tool on the Market. It allows individual investors to take advantage of their competitive advantages. We can control our risk better than institutional investors ever could, and Trend tracker gives us the opportunity to do it without making mistakes.
Earnings season brings anxiety to the table, and investors sit on edge as the stocks they own report results. In this weak economy, who knows what to expect. Although this often gets lost in the shuffle, there are some investors who do know. We call them smart money. They might be insiders, or they may be sophisticated investors who measure suppliers and distribution chains against probable revenue streams. Regardless of who they are, they make decisions with their pocketbook, and if we pay attention to what they are doing, maybe we can get an edge up on the market, just like they have.
This is what technical analysis provides. It tells us when smart money is making decisions to buy and sell. It offers trend analysis, and it can provide insight to what lies ahead. The analysis referenced in this article aims to reveal those trends and offer insight ahead of earnings releases. Details are provided and access to real time reports are available for each of the stocks mentioned.
JP Morgan (NYSE: XLNX), XLNX is in an extremely tight longer term channel. However, an up-channel seems to be developing too. At this time though, there is a barrier to higher levels. Although upside potential exists according to the overall trend, XLNX must pass the interim resistance level to move higher. We have defined this as longer term parameter #2 in our real time report for XLNX. If the stock moves over this resistance level, our report tells us to expect the stock to complete the oscillation channel, and test longer term resistance. We have defined this as longer term parameter #3 in the same report. A failure to break above longer term parameter #2 would stall the upward channel, and cause a reversal in the stock instead. Clearly, that would be a sell/short signal. Use longer term parameter #2 as inflection, and use it to guide your decisions after you read the report. Find the link above.
Biogen (NYSE: BIIB), BIIB recently tested longer term support, and if that support level holds a nice up-move is likely. In fact, a complete oscillation from support to resistance as defined in our report reflects an approximate 25% move. However, first support must hold. If it breaks, all bets are off, and the longer term channel will break along with it. That would be a bearish sign, and a clear sell signal. Use longer term parameter #1 as inflection. It is longer term support. If support holds, expect the stock to trend towards resistance. That is defined in the report too. However, if longer term parameter #1 breaks lower expect an aggressive deterioration. That is your risk control. Review our real time report for details.
Google (NYSE: GOOG), The mid term charts for GOOG are much more reliable than the longer term patterns seem to be. That makes it a great candidate for swing trades. However, the stock seems to be in the middle of its mid term channel right now, and neither buy or sell signals exist. Instead, anyone interested in GOOG should wait until either a test support or resistance takes place before they make a decision. Reasonably, support has been tested most recently, so a test of resistance is most likely to come next, but this is not a time for new trades because the stock is mid channel. We have defined support as mid term parameter #1, and resistance is mid term parameter#3. Review these, and respect those parameters when you review our dynamic report. If this pattern holds, GOOG will trend lower from resistance, and offer a short opportunity, and then higher from support to offer a buying opportunity, over and over again. Good Trading.
Intel (NYSE: INTC), INTC is approaching longer term resistance. Beware! Longer term resistance is defined as longer term parameter #3 in our real time trading report. If resistance holds, INTC could experience a meaningful decline. News events aside, smart money is speaking, and thus far resistance levels have held. If it stays that way, expect a pullback, and consider this a sell signal. However, if INTC breaks above longer term parameter #3, a more aggressive increase could follow. That makes this resistance level an inflection level. Respect it as such, and recognize that immediate downside risk exists.
Author does not hold any positions in these companies.