John Lansing's Trending123
John Lansing's Trending123
Username: Password: Login
Trade Talk E-Letter Products & Services Trading Tools Portfolios Members Home
risk-free trial

NASDAQ LYO GIGM JOYG OSTK
Tuesday, February 20, 2007

NASDAQ--Makes new 52 week highs so now any bearish head and shoulders pattern that might have been there has now been negated. The QQQQ's should be the next to follow but so far have not made new highs we are about 35 cents away.

LYO--If you liked the NCX chart update and sector then you might not have known you were already in that sector, chart pattern, and wave structure. The monthly chart is nearing all time highs. Once it crosses there is no resistance above but we are still about a buck off from that level.

OSTK--Currently it's up 24% as it heads to my first major resistance area (the monthly downtrend line) after this update you can click that chart and go right to that update.

GIGM--Broke out of a cup and handle but needs to show follow through. It broke out on massive volume (nearly triple)

JOYG--Approaching resistance from gap up earnings resistance (short and long term picture)

Nasdaq Composite Index - ($COMPQ) - Bullish Continuation Diamond Pattern
The daily chart of the $COMPQ illustrates that it has been trading in a wave 3 to wave 4 sideways consolidation pattern called a Slim Jim or a rectangle for the past three months (Holidays). Today, the $COMPQ broke out of the continuation diamond pattern, which I discussed on this past weekend's update. ( even though I have it marked as an ascending triangle here.) This is a bullish signal, and today's breakout on strong volume move marks the start of new impulse wave 5 up move. Higher highs are bullish because there is no overhead price resistance that the $COMPQ has to overcome. In addition, you can see steady volume has come into the index since the beginning of the year . If you look at the moving averages, you will see that they converge slightly during each consolidation phase and are now beginning to turn upwards along with the breakout of the continuation diamond. Furthermore, if you look at the indicators and oscillators you will see that, they too, confirm the classic upside breakout pattern. The Aroon indicator is in a 123 bullish trend reversal marked by it's recent cross at the 30 line. The PPO is in a 123 bullish trend reversal and is pointing upwards as are the RSI and stochastic's. The indicators and oscillators are moving up along with price which signals a bullish direction and trend. Therefore, when you look at this bullish chart of the $COMPQ you can determine that the pattern, the trend, the direction, the volume, the indicators and oscillators all confirm the price action which ultimately confirms the bullish trend. You always want to look to these for confirmation of a move and to validate a trade based on technical analysis. The previous 52 week high was placed on Friday Jan 12th at 2502.82. Today's new 52 week high was placed at 2514.22. The QQQQ should follow suit shortly.



NASDAQ
Stock Charts
JOYG--HITTING RESISTANCE--JOY GLOBAL INC- (JOYG)- Daily Chart - Bullish Symmetrical Triangle - Industrial Goods - Optionable-- Today JOYG broke out of the bullish symmetrical triangle on the daily chart. You can see the huge candlestick and above average volume supporting today's breakout. If you look at the moving averages, you can see that they have crossed over and are trading in a bullish fan. The Aroon indicator had a bullish cross in early February, marking it's bullish trend. In addition, the indicators and oscillators are confirming the recent breakout of the triangle with bullish divergence, and they have all bottomed and are curving upwards. Now I want you to be aware that JOYG is approaching short term resistance at the previous high of $50.77 and support is at the 13 EMA. You are probably feeling pretty good right now as the stock approaches this resistance. Consequently be prepared for a possible pullback. The buy alert for JOYG was triggered on December, 19th 2006 at $49.00. It is a medium risk swing trade, meaning that it is meant to be held for 3 to 6 months or until price target is reached at $76.00. That would be a gain of 27 points. This JOYG update only applies to old subscribers, who bought the buy trigger alert in December. (New subscribers please wait for new buy alerts to be issued. Please read the New Subscriber information
Stock Charts
JOYG--LONGER TERM--JOY GLOBAL INC- (JOYG)- Weekly Chart - Bullish Continuation Wedge Pattern - Industrial Goods - Now let us zoom out and look at the weekly chart of JOYG to get a longer term view of the stock. As you can see, JOYG has completed it's impulse wave 3 to wave 4 counter trend move. On the weekly chart, you can see the corrective lettered ABC zig zag waves down. This corrective wave formed the continuation wedge pattern. Which is also part of impulse waves that make up wave 3 to wave 4. The Aroon indicator had a 123 bullish trend reversal on the breakout of the wedge. In addition, the increasing volume that came into JOYG as it reached long term support at the uptrend line. You can also see that price is now trading above the EMA's and that they have had a triple moving average cross over signaling a reversal move on to impulse wave 5 . Furthermore, you can see the highs that occurred in the PPO and RSI at impulse wave 3, and you can also see the bullish divergence in the PPO and RSI. Also note how the stochastics are bull flagging. Please not that resistance is also present on the weekly chart at $50.77. This needs to be taken out, and once it does, it will then become a new level of support. If you did not look at the weekly time frame and just looked at the daily you would not get the additional longer term information and confirmation signals. The buy alert for JOYG was triggered at on December, 19th 2006 at$49.00. It is a medium risk swing trade, meaning that it is meant to be held for 3 to 6 months or until price target is reached at $76.00. That would be a gain of 27 points.
Stock Charts
OSTK--COMING ON RESISTANCE AT $20.00--Overstock.com - (OSTK) - Daily Chart - At Short Term Resistance - Optionable-- The daily chart illustrates that OSTK broke out of the falling wedge reversal on February 6th. You can see where OSTK bottomed in November and then retested the lows in January. As you know what fails to break down, breaks out. OSTK broke out of the falling wedge reversal with a huge candle stick up on massive volume. This volume and candlestick formed the pole, and then you see a consolidation move on light volume to form the pennant / flag part of the pattern. The indicators and oscillators are in a bullish trend reversal and confirm the breakout move. The Aroon indicator had a bullish cross to confirm the breakout. The RSI and PPO are showing bullish divergence off of the lows. The Stochastics are moving parabolically up, the WM% is trending and is bullish. Note how the EMA's have had a triple EMA crossover have traded up in a parabolic fashion along with price. As you can see OSTK has some nice gains since our buy alert triggered on January 16th at $15.30 . We are up 24% on OSTK so far. Short term price target is at 200 EMA around $20.00. When OSTK hits $20.00, we will sell it and then buy it back after a normal retracement. Short term price target is $20.00. This stock update only applies to old subscribers who bought when the buy trigger alert was issued. (New subscribers please wait for new buy alerts to be issued. Please read the New Subscriber information
Stock Charts
Gigamedia Ltd- (GIGM) Daily Chart - Cup and Handle Breakout Swing Trade- Optionable We bought GIGM at the beginning of last week. I originally suggested that we buy GIGM on a pullback which is exactly what we did. GIGM is in a bullish cup and handle pattern. Today, GIGM broke out of the cup and handle pattern with a big stick up and on super duper massive volume, which confirms the breakout. Since this is the first day of the breakout we do want to see follow through. This could even contain a light volume dip to the breakout line confirm support. According to the monthly, I believe that GIGM may be at the beginning of an impulse wave 3 move up, which is the fastest / longest moving impulse wave out of the 5 waves. Impulse 3 waves and offer great gains. Indicators and oscillators are in a 123 bullish trend reversal. GIGM is a medium risk swing trade, entry was on February 12th at $12.00. I think price target is around $16.00 or $17.00 which is also represents resistance. This stock update only applies to old subscribers who bought when the buy trigger alert was issued. (New subscribers please wait for new buy alerts to be issued. Please read the New Subscriber information
Stock Charts
LYO--NEARING ALL TIME HIGH RESISTANCE--Lyondell Chemical Company - (LYO)- Monthly Chart- Rounded Bottom - Chemicals - Optionable The Monthly chart illustrates that LYO is in a rounded bottom pattern. However it is currently at resistance at all time highs $33.44, and price could stall here. However, it could also breakout and that would be a triple top breakout. As I pointed out on the weekend update of NCX,which is also in the same sector as LYO. The chemical sector is bullish by the way. I like to look at the monthly charts because I always want to see what the big picture is. The further out in time you go when looking at a chart the more clarity you get as to the trend, wave structure and pattern a stock is in. Now let us discuss wave structure. What I want to point out here, is that you can clearly see that LYO is 5th impulse wave move up. How was this determined? By being able to identify what the current wave number is, you can then determine what the overall wave structure is. Since we already know that wave 2 to wave 3 is the longest wave out of the five, which we can see clearly on the chart, and we also know that wave 3 to wave 4 contains a corrective wave in the form of a falling continuation wedge, and we know that wave 4 can never overlap wave 1. Consequently, like Sherlock Holmes, we can then deduct with logic, that LYO is now in a 5th impulse wave up move. Furthermore, you can see that all the waves in the chart conform to Elliot wave rules. The pattern then also confirms the wave structure. On top of that information, we also know that the PPO and RSI always match the wave structure and you can see that the RSI and PPO topped at wave 3 and bottomed at wave 4. The indicators and oscillators on the monthly chart have just had a bullish trend reversal that coincide with a continuation leg of impulse wave 5. We bought LYO at $30.40 last Monday, this was after the lows were placed and reconfirmed on the monthly chart. Please note that the indicators and oscillators are in a 123 bullish trend reversal, and the PPO shows that it is just starting to reverse to the upside. The buy alert for LYO was triggered at $30.40. It is a swing trade, meaning that it is meant to be held for 3 to 6 months or until price target is reached at 10 points higher at $40.00. This stock update only applies to old subscribers who bought when the buy trigger alert was issued. New subscribers please wait for new buy alerts to be issued. Please read the New Subscriber information

Stock Charts

2/20/07 - A Trader's Daily Affirmation: I learn something new about the market everyday. This knowledge gives me an greater trading edge and a better understanding of the market and technical analysis.


Edited by Daisy
Andrea Victoria Friend aka Daisy
Editorial Assistant for Trending123.com