Here are a few tech stocks I’ll be watching Thursday:
NVDA is experiencing nice volume improvement on move through SMA50. The weekly chart is starting to turn bullish, as well. A move over 10.50 would make NVDA a possible swing candidate on the weekly.
ONNN – This isn’t an obvious setup and I may be a little early here, but I like a few indicators.. First, the 10 point momentum (not pictured) is drifting up. Second, I like the tightening of the bollinger bands. Third, RSI14, MACD, and Full Sto are all showing signs of bullish divergence (they are drifting up over time while price is drifting down). ONNN finished the day on SMA20 and needs to hold above 6.40 tomorrow to confirm bullish move. If it falls below, I’m looking for an entry closer to 6.20. First target, SMA50.
FLEX – Not a great looking chart, but a move above horizontal resistance at 5.50 will likely bring in buyers. On watch.
CRUS has been crushed lately. I’m not looking for a position until it can prove SMA100 support. This may only happen on the backs of a strong market move.
Looking for pullbacks in ARMH, MIPS and RFMD for possible entries. Strong moves lately.
ENER is struggling against SMA100. I like the volume, so it’s worth keeping around, but I won’t play ENER until it gets through the ceiling (5.20ish).
PWER is attractive, but the best entry is around SMA50. However, with these tightening bollinger bands, it may offer a good scalp on volume move up.
General market thoughts:
Most of the market looks ready to sell off, in my opinion. It might just be because of today’s weakness into the close, but I encourage you to be careful. One of the best ways to reduce risk is to NOT trade the open, but instead wait 30 minutes, or so, and see how the market shakes out. Also, I’m reducing the number of swings until we have more market volume and an established direction.
Over the last few days I’ve been jumping up and down about the SMA100 resistance in the SPX. I’m convinced the pros are using it as a profit taking mark. Until we push through, I’m not going to be very bullish. My guess is that we’ll pull back to SMA20, at least. However, I don’t see 1040 in our near future unless there is a large news event. Look how beautifully SPX tagged SMA100 then reversed. Wow.