Posts tagged ‘Support and Resistance’

April 8, 2011

WFR’s Gaps

We’ve already identified the two gaps that we’ll need to be concerned with for WFR in previous posts.   The second tiny gap has already been filled and I will note that the first gap from February needs to be tended to.  Caution on the need to fill this gap.  Until then, pray for support.  Target 11.90.

April 1, 2011

STP’s Doji at the Top

I’m calling a pause on STP’s head and shoulders.  Today’s test of what I felt is the point of resistance was weak, ending up with a doji at the top of a trend.  Therefore I’ll call it.  Reverse.  (But can I say I hope for a break in the neck line? 🙂

 

April 1, 2011

WFR’s Doji

WFR tested past the resistance noted previously. The stock ended up with an engulfed doji, which normally is an indication of reversal in an uptrend, but do we even consider the past few marks an uptrend. I’m considering this doji just a break before the move.  I like to trade the MA crosses and in this case, the 10 is above the 13 which, in WFR’s case, is usually a call to move up.
I suspect we’ll see an move up because of the two, but as the first WFR analysis called for, I will be waiting for the PSAR confirmation before I enter. If you notice, the PSAR was never cleared for the next uptrend.

March 31, 2011

MEMC’s Spinning White Top – 13.10

As previously mentioned, WFR is trading at the 13.10 resistance.  A spinning white top confirms the need to hold before taking any action.   Keep an eye on the 50-day at is makes its way across the other MAs.  However, note the 10-day’s move below the 13-day despite bull action.   This brings up the reminder that there is a February gap to fill.

 

 

 

 

 

 

 

 

 

 

 

 

March 28, 2011

MEMC Channel and Wafers

Take a look at MEMC, ticker WFR.  There are a couple of things that pique my interest.  First off is the strong upward channel that the stock is moving in.  Next, you’ll note that the stock is also in between support and resistance with a 1 point range, but I suspect that the WFR reversal will meet resistance.  This is not a big concern as we still have both the bottom of the channel and the support at 12.   Also worth mentioning are the 50-day crosses.  Let’s keep an eye on the next cross in progress, but do not enter the trade until the resistance is broken and the PSAR is surpassed.

 

The thing to note about MEMC is their focus on monocrystalline silicon processes versus polycrystalline.  This is only a personal opinion, but I believe that as the market continues to drive down the prices associated with solar applications, we’ll soon see a trend where companies will opt to use pure and efficient silicon rather than hybrids or poly’s since price pressures will ease a bit.   Remember, aside from innovative applications, the solar industry aims to increase efficiency and to date, polycrystalline will not provide the efficiency of monocrystalline.  I would like to follow the industry to see how the two processes evolve.  For now, MEMC and its high volume monocrystalline technology is smart solar.