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June 20, 2005
Notable Charts 050620
BVF - Biovail firmed in early May and then consolidated with a flat flag. The stock got a bounce last week, but volume was not that impressive and I would still like to see a close above 16.5 before turning bullish.
CTX - Centex formed a breakaway gap in mid May and surged to new highs in June. Friday's gap could be an exhaustion gap, but not until it is filled with a move below 69. A gap down and long black candlestick today would forge a most ominous candlestick reversal.
IBM - If the May rally is to continue, IBM needs to join in or lead with a breakout at 78. Otherwise…..
IMOS - Chipmost tech broke above the upper trendline of a falling price channel. The stock advanced five days straight and volume was above average. Hmmm…..
LLY - Lilly surged in April and broke resistance at 58 with good volume. The stock consolidated in May and formed a falling flag over the last four days. The trendline break is a start, but volume needs to increase to validate a continuation of the April surge.
LQI - La Quinta remains a strong stock within the consolidation. Notice how the stock gapped down at the end of May, firmed and then surged on good volume the last few days. A breakout at 9.5 looks imminent. Watch key support at 7.9 to turn bearish.
MLNM - Nothing like a little Mad Money to stir things up. However, On Balance Volume was strong even before Friday's Velcade announcement and Cramer's plug. Notice that OBV held above its March low when the stock tested its March low. By and large, upside volume has outpaced downside volume and this shows accumulation.
QCOM - QualCom is not helping the Nasdaq one bit. The stock broke double top support with a gap down in January, rallied back to broken support (now resistance) and the broke rising price channel support with a high volume decline over the last two weeks.
TER - Teradyne surged on good volume in May, consolidated with a falling flag in June and gapped higher on Friday. The stock even closed strong and upside volume was respectable. This opens the door to 16 with key support at 12.8.
ULBI - Ultralife Batteries was highlighted for its weak relatively performance and downtrend on 10-Jun. The stock has since broke below 16 and a trip to support around 10 looks in order.
WERN - Werner managed to firm after the gap down and then surged on big volume. The gap is looking like an exhaustion gap and a move above 20 would be bullish.
Posted by Arthur B. Hill at June 20, 2005 09:45 AM