Stock Chart Analysis MCHP
Microchip Technology Inc. (Public, NASDAQ:MCHP)
While the markets have been looking weak to me, I noticed more then a few semiconductor equipment stocks tonight with interesting patterns developing. There are more then a few that look like they are attempting bottoming patterns. MCHP is one for instance. While it has plenty of overhead resistance, the recent action looks like a solid base. It has a clearly defined breakout point near $33, which if broken should lead to a filling of the gap near $36.If the markets decide to breakdown, then it shouldn't trigger, so this is a fairly easy play to call. Keep an eye on other stocks in this space like XLNX, AMAT and the Solar semi's as well. If the markets attempt a rally, then they may lead the way.
Good Trading,
Joey
for more analysis, check out downtowntrader.com
Stock Chart Analysis SWY
Safeway Inc. (Public, NYSE:SWY)
The indexes are fighting to stay above some support levels, but it's looking like they may be broken on longer term timeframes. While we could find a bottom here, I think the path of least resistance is currently lower. With that in mind I am highlighting a chart of SWY which shows a clear breakdown from a long base. It had a sharp bounce today and could follow through if the markets gap higher tomorrow. I think that may be a gift as it has substantial resistance overhead. Keep in mind that all the traders who bought this in the last year are currently underwater. This is why broken bases offer such stiff resistance, as traders underwater jump at the chance to break even on any bounces. While this is not the most exciting stock to trade, the downside target should be near $25, which with a bounce to the $30's provides a decent potential trade opportunity.
Good Trading,
Joey
for more analysis, check out downtowntrader.com
Got home late tonight and I'm not finding too many appealing charts. The indexes are right at support and it could go either way for the next few days. I'm still liking DE if the markets head higher, and maybe DUG if the markets head lower. TWM is setting up as a nice play on a pullback (markets heading higher). Not much else to add tonight.
Good Trading,
Joey
