Sunday, May 19, 2002 10:23:03 PM
T/A: RHAT, QCOM, QQQ, MSFT, CSCO, INTC
Red Hat, Inc. (NasdaqNM:RHAT)
Chart 1.1
Chart 1.2
Chart 1.1 is showing a possible bullish wedge on RHAT. You can see the same wedge on the Weekly chart. I would recommend buying this one with a stop @ 4.75. If it goes below that, odds are that it's basically dead. It will have gone below the blue line, which is currently it's short term support, IMO, and is not likely to recover to finish off the wedged rally.
Chart 1.2 is showing that the MACD-Hist is currently swinging upwards and could go positive in the coming weeks. Bullish sign.
QUALCOMM, Inc. (NasdaqNM:QCOM)
Chart 2.1
QCOM is caught in a similar, but not as strong wedge. I would not buy this one under 30, and if bought over 30, put a stop @ 29.50. Buy on skepticism from 30-33, buy on alert @ 34-38.
Nasdaq 100-Tracking Index
Chart 3.1
Chart 3.2
QQQ is caught in a very tight and very unstable wedge(Chart3.1). The odds of this one actually taking off are not as good as the others mentioned, but it is still possible. If it breaks 34, buy. Falls below 32, sell.
However, the odds for the wedge actually look more likely when looking at chart 3.2. The Stochastic is looking at a break out. IMO, 60% chance the wedge will rally.
Microsoft Corporation (NasdaqNM:MSFT)
Chart 4.1
Chart 4.2
MSFT is looking at a very likely wedge(Chart 4.1). Of all the stocks in this report, MSFT is most likely to rally. I would buy this one over 50, but not below. And sell/place stop order if/at it fall/s below 48.
Chart 4.2 is a Stochastic breakout, which even further invests my faith in MSFT wedge. Strong Buy on MSFT, IMO.
Intel Corporation (NasdaqNM:INTC)
Chart 5.1
Chart 5.2
Chart 5.3
Chart 5.1 shows a continuous downward trend which isn't likely to be broken, unless.....
Chart 5.2 shows more resistance, which isn't likely to be broke, unless....
Chart 5.3 is our hero! <Enthusiasm> Another good looking Stochastic breakout. This one will go through, unless the strong resistance it's facing pushes it back down. We'll find out in a few days. If it moves to 34 this week, buy, 30, sell.
Cisco Systems, Inc. (NasdaqNM:CSCO)
Chart 6.1
Chart 6.2
Chart 6.1 shows a possible bullish wedge. The blue line is another possible resistance line, which is still compatible with the wedge. The dark red line is the previous support line. I posted that to show that the support line is now pointing upwards, instead of downwards. Always a positive move, IMO.
Chart 6.2 shows a huge spike in the Stochastic. It is a break out, but looks like it's not going to last. I would stay away from CSCO unless the Stochastic jump continues.
Red Hat, Inc. (NasdaqNM:RHAT)
Chart 1.1
Chart 1.2
Chart 1.1 is showing a possible bullish wedge on RHAT. You can see the same wedge on the Weekly chart. I would recommend buying this one with a stop @ 4.75. If it goes below that, odds are that it's basically dead. It will have gone below the blue line, which is currently it's short term support, IMO, and is not likely to recover to finish off the wedged rally.
Chart 1.2 is showing that the MACD-Hist is currently swinging upwards and could go positive in the coming weeks. Bullish sign.
QUALCOMM, Inc. (NasdaqNM:QCOM)
Chart 2.1
QCOM is caught in a similar, but not as strong wedge. I would not buy this one under 30, and if bought over 30, put a stop @ 29.50. Buy on skepticism from 30-33, buy on alert @ 34-38.
Nasdaq 100-Tracking Index
Chart 3.1
Chart 3.2
QQQ is caught in a very tight and very unstable wedge(Chart3.1). The odds of this one actually taking off are not as good as the others mentioned, but it is still possible. If it breaks 34, buy. Falls below 32, sell.
However, the odds for the wedge actually look more likely when looking at chart 3.2. The Stochastic is looking at a break out. IMO, 60% chance the wedge will rally.
Microsoft Corporation (NasdaqNM:MSFT)
Chart 4.1
Chart 4.2
MSFT is looking at a very likely wedge(Chart 4.1). Of all the stocks in this report, MSFT is most likely to rally. I would buy this one over 50, but not below. And sell/place stop order if/at it fall/s below 48.
Chart 4.2 is a Stochastic breakout, which even further invests my faith in MSFT wedge. Strong Buy on MSFT, IMO.
Intel Corporation (NasdaqNM:INTC)
Chart 5.1
Chart 5.2
Chart 5.3
Chart 5.1 shows a continuous downward trend which isn't likely to be broken, unless.....
Chart 5.2 shows more resistance, which isn't likely to be broke, unless....
Chart 5.3 is our hero! <Enthusiasm> Another good looking Stochastic breakout. This one will go through, unless the strong resistance it's facing pushes it back down. We'll find out in a few days. If it moves to 34 this week, buy, 30, sell.
Cisco Systems, Inc. (NasdaqNM:CSCO)
Chart 6.1
Chart 6.2
Chart 6.1 shows a possible bullish wedge. The blue line is another possible resistance line, which is still compatible with the wedge. The dark red line is the previous support line. I posted that to show that the support line is now pointing upwards, instead of downwards. Always a positive move, IMO.
Chart 6.2 shows a huge spike in the Stochastic. It is a break out, but looks like it's not going to last. I would stay away from CSCO unless the Stochastic jump continues.
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