Technical Analysis of Financial Markets

Tuesday, January 16, 2007

AES Corp. (AES)

Electric power generator and distributer AES has recently been sold-off declining 20% in a month. Price action is currently trading around at $20 which has served as support for 5 months. Enter long position with a stop-loss close below $20.

Monday, January 15, 2007


Unseasonally mild weather has sent oil prices plunging some 22% to a 19-month low in a period of just a month. As short sellers cover with the possibility of OPEC convening this week to discuss production cuts, the following selection of oil and oil-related services stocks may be poised for a technical recovery over the quarter:

Halliburton Co. (HAL):

Schlumberger Ltd. (SLB):

BJ Services Co. (BJS):

Chesapeake Energy Corp. (CHK):

Helix Energy Solutions Group, Inc. (HLX):

Saturday, January 13, 2007

Gateway Inc. (GTW) - Head & Shoulders Bottom

Computer manufacturer Gateway has formed a bullish Head & Shoulders bottom pattern. Current price action may find support at the $2.1 neckline. 3Q 2006 results announced Nov 2nd 2006 reported profits surpassing expectations which saw the stock price surge 8%; price action has remained in an uptrend since. 4Q 2006 results are due this season; stop-loss $1.90.

Friday, January 12, 2007

Wells Fargo & Co. (WFC)

Financial services firm Wells Fargo rallied 33% in a 14-month period. Price action is however starting to weaken and is currently testing the trendline support of the uptrend. Sell on close below the trendline for an initial price target towards $34. Stop-loss $36.

Yahoo! Inc. (YHOO) - Head & Shoulders Bottom

After declining some 93% over the past 12 months, Yahoo! has consolidated into a bullish Head & Shoulders bottom formation. A strong 3.5% breakout from the neckline has confirmed the pattern which may see a pullback towards the neckline support before price action resumes higher. Initial price target at $31. Stop-loss: close below neckline.