Posted by downtowntrader | 10/30/2006 10:26:00 PM | 3 comments »

The indices ended marginally higher today holding support after a weak opening. They pulled back late in the day, so there is still much in the air right now. The markets have been in need of a breather and are still above the 20sma's, so a top or reversal is still to early to confirm. Here are a few charts to watch in the coming days.

Rambus Inc. (Public, NASDAQ:RMBS)
Semiconductors were strong today and if they are to resume a leadership role then RMBS may break out of this trading range.

Perficient, Inc. (Public, NASDAQ:PRFT)
PRFT is trading a tight little triangle and may be offering a nice place to enter the trend.


Energizer Holdings, Inc. (Public, NYSE:ENR)
ENR is another strongly trending stock and may be finding support near the 20sma.

Ansoft Corporation (Public, NASDAQ:ANST)
ANST is still within a pennant consolidation and may be offering a decent entry for a long position.

IHS Inc. (Public, NYSE:IHS)
IHS is finding support near the 20sma and has held above the larger ascending triangle base it cleared a few weeks ago.


VAALCO Energy, Inc. (Public, NYSE:EGY)
EGY is in the process of consolidating the recent downtrend breakout and may be getting close to moving higher.

Panera Bread Company (Public, NASDAQ:PNRA)
PNRA tagged the lower band today and may get a technical bounce here. Usually, a stock comes back to tag the band a second time within a few sessions, but a nimble trader can get a decent move off the first bounce.

Foundry Networks, Inc. (Public, NASDAQ:FDRY)
FDRY is also hanging on to the lower band and formed a hammer today. it looks like it will make a run to the 20sma.

Cameco Corporation (USA) (Public, NYSE:CCJ)
CCJ is one of the few shorts that look enticing to me here. It looks like it may come back to test the low 30's.

Good Luck,


DT

3 comments

  1. Muaad // 1:20 AM  

    DT,

    Its great that you mentioned PRFT - a very well trending stock. I hopped aboard the PRFT train a few weeks ago with an entry of 14.50.

    Although I am first and foremost a swing trader, after watching many great trending stocks that turn into 5 - 6 - and even 10 baggers, I figured that Trend Following is definately a simple and solid methodology. So I have divided up my portfolio between these two strategies.

    I have noticed that you post many great trending stocks on your blog, do you use a trend following methodology (referring specifically to following the larger trend), or do you focus on swing trading the pullbacks?

    Regards,
    Muaad

  2. Anonymous // 8:26 AM  

    Thanks for your watchlist.

    How you are able to use 5 indicators in the chart provided by stockchart. Maximum I am able to use only 3 indicators from the free chart version. Are you using premium version?

    Thanks!

  3. downtowntrader // 9:48 AM  

    Muaad,
    I've looked at different trend following strategies and in the right market conditions may put on a few longer term trades, but I try to focus on the swing trades. For instance, if we do enter a bear market soon, then I would look to enter a few longer term trend following trades, but, I find that I lack the patience and confidence in my trend following strategies. Also, I am trying to perfect my methodology before trying to do too much.

    Anon,
    I do use the premium version of stockcharts, but three indicators is plenty. I would use MACD, Slow Stochastics and bollinger bands if I was limited to three.


    DT