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November 14, 2005
Holding the uptrend and some stock charts.
Good Day! Stocks remain strong overall with a number of breakouts on Thursday. Even though volume and breadth are not overwhelmingly bullish, they are in the bullish camp and this is fueling a slow steady advance. Today, I am going to highlight a number of interesting charts with bullish or bearish setups, breakouts and break downs. Have a great trading day.
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ABT - Abbot Labs formed a triangle over the last few weeks and broke above the upper trendline with above average volume last week. The HealthCare sector has been lagging the overall market and has some catching up to do to return to favor. Back to ABT, this is the third bounce on good volume (green ovals) and there is a ton of support around 42. A move below this level would negate the triangle breakout.
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ARIA - Ariad Pharma is also making a break for it with a move above the September trendline and a gap high on big volume. The gap is bullish until proven otherwise with a move below last week's low.
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JBLU - Jet Blue comes across the bullish screens once again as it breaks the July trendline and challenges resistance at 20.
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XJT - Express Jet has a head-and-shoulders working, but is getting a good bounce off support. This is part of a strong airline and transport group. I will take the break above 9.5 as bullish until proven otherwise with a break below 8.4 support.
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LF - Leap Frog is not a happy camper. The Nasdaq surged in November, but LF moved lower and shows poor relative strength. The May-Sep advance retraced around 50% of the Sep-04 to May-05 decline and the stock broke the trendline extending up from May with the October decline. A move above 15 would resurrect the bulls.
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GD is part of a defense group that is coming under increasing selling pressure. The stock broke the April trendline in October and formed a rising flag over the last two weeks. Thursday's rally failed and the stock broke the lower flag trendline on Friday.
Posted by Arthur B. Hill at November 14, 2005 08:16 AM