|Hot Stocks Update - QCOM
|January 16, 2007
Last time around I told you how I’m not a news junkie and that I don’t depend on the news to tell me what actions I will or won’t take in the market.
Call me a free-thinker, if you must. But I’m adamant on this point.
The fact is that the only news you need to know is within the pattern charts. You can certainly fill up on any news you want. But when it comes down to choosing how you will invest, where you will invest and when, well…the proof is in the pudding, er, the pattern!
I’m gonna highlight this point for you with current Hot Stock: Qualcomm (QCOM).
Qualcomm Incorporated engages in the design, development, manufacture, and marketing of digital wireless telecommunications products and services based on its Code Division Multiple Access (CDMA) technology. It develops and supplies CDMA-based integrated circuits and system software for wireless voice and data communications, multimedia functions, and global positioning system products to wireless device and infrastructure manufacturers.
And right now, it’s following what we call the Bottom Triangle/Classic Wedge Pattern.
What Does It Look Like?
A Bottom Triangle/Wedge consists of a group of patterns which have the same general shape as Symmetrical Triangles, Wedges, Ascending Triangles and Descending Triangles. The difference is that the formations grouped together as this type are reversal and not continuation patterns. These patterns have two converging trendlines. The pattern will display two highs touching the upper trendline and two lows touching the lower trendline.
This pattern is confirmed when the price breaks upward out of the Triangle/Wedge formation to close above the upper trendline.
Volume is an important factor to consider. Typically, volume follows a reliable pattern: volume should diminish as the price swings back and forth between an increasingly narrow range of highs and lows. However, when the breakout occurs, there should be a noticeable increase in volume. If this volume picture is not clear, investors should be cautious about decisions based on this Triangle/Wedge.
What Does This Pattern Mean?
A Bottom Triangle/Wedge is considered a bullish signal, marking a possible reversal of the current downtrend.
There are certain trading considerations when a stock, such as Qualcomm is showing this pattern. Take a look at those here to further understand why I am advocating a buy on Qualcomm. On this page, I have also listed a number of current stocks in the Bottom Triangle/Wedge Pattern that I am recommending to Trending123 subscribers.
I hope you have a better understanding of the Bottom Triangle/Wedge pattern. But if not, I fully you encourage you to check out my site: trending123.com to learn more. HINT: The only way you get an all access pass is to subscribe, but luckily you start off with 14 days at NO COST. Pretty sweet deal, eh? Check it out here.
P.S. In an ever-changing market, it’s not easy to keep up or know what to do next. That’s why my priority is you. With timely analysis, multiple daily updates, stock charts, education if you need it and most of all, profits, you will always be “in the loop” on everything that matters. Whether you’re a seasoned pro, a rank beginner or somewhere in-between, you’ll find plenty to like at Trending123.
P.P.S. Stay tuned for my next round of Hot Stocks…coming soon to an email box near you!