Friday, August 15, 2008

Stocks in the Blogosphere

Making the most of blogosphere stock watch with Zignals stock alerts and stock charts.

Wall St Warrior featured Amgen (AMGN)

The first chart is daily chart of AMGN, which shows why it is having such a hard time breaking out of the $64-65.00 range. There are lots of pivots dating back to 2006 which are getting in the way of a smooth BO. Last week it failed at $64.00, but has continued basing in a tight range so I have kept it on my focus list. Today, it finally broke $64.00 and was setting up a nice C&H pattern at $65.00. It was no surprise that the C&H pattern failed.

Amgen (AMGN) looks like it will remain choppy until it clears $66.06. Set an intraday price alert for $66.16 to watch for a breakout, or $58.51 to take advantage of a pullback and let the stock come to you.

AC Investor has three stocks for Friday, one of which is the ever popular Apple (AAPL)

AAPL - The stock might face a period of sideways action while it consolidates the gains booked in the last session. The stock will face short to medium term resistance at $180.91. Once this level is crossed with good volumes, the stock can go to $190.

On the Stock Alert front set for an intraday break of $181.99 ($182.09) or a drop into $142-$162 range.

Finally, Downtowntrader took a look at PetSmart Inc (PETM)

PETM is a nice example of a confirmed double bottom. A lot of traders see the W forming and assume it's a double bottom, but in fact a double bottom is only confirmed once the stock CLOSES above the neckline (or top of W). A large number of these patterns fail before closing above the neckline, and usually end up forming some sort of descending triangle.

Notice how PETM did in fact close above the neckline. The way to measure a target for this pattern is to measure the distance from the top to the bottom of the pattern. This yields a target of 6 points, which would take PETM near 31. Of course there are no guarantees it ever gets there. Here is a link to double bottoms on a great site for chart patterns and how to trade them.

Since Downtowntrader featured this stock the initial break of the double bottom neckline failed, so if the move is to restablish price will have to close above $25.50 (or $26.41 if going by highs). Set alert two alerts; a close above $25.50 (alert for $25.61) and an ask price greater than $26.41. If these trigger set a new alert for a $6 move.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts, and stock charts website