Dorsey Wright offers comments
Dorsey Wright offers comments today (Monday, 24 October) germane to a handful of stocks we follow:
Coach/COH (Textiles / Apparel): The technical attributes of COH remain very strong and the stock continues to make a textbook series of higher highs and higher lows. Most recently, COH has just reversed up to make a higher bottom. The weekly momentum has been negative for 11 weeks; this is an extended period of being negative. Okay to buy COH here with a stop/hedge point at 28, a double bottom. This is also a stock to put on your shopping list of ideas for once the indicators turn back to positive.
EBay/EBAY (Internet): The stock itself meets the criteria that we had laid out in Wednesday’s report. More specifically, EBAY is in an overall uptrend, having held its bullish support line back in April; we have seen higher bottoms since. As well, the stock is a 5 for 5’er, so it obviously has positive relative strength. EBAY has formed a triangle of sorts, setting up the potential for a triple top breakout at 43, while forming good initial support at 39, right at the middle of the ten-week trading band. The upside bullish price objective is 59; and with a stop loss point of 36 initially (a violation of the uptrend line), EBAY sets up as a good risk-reward play. Also, the weekly momentum has just turned back to positive after having been negative for seven weeks. Given this positive technical picture, EBAY is one to consider for your shopping list. Ideally, we would like to see the stock breakout to 43 before buying.
Google/GOOG (Internet): On strong earnings news shares of GOOG ran through previous tops at $320 to complete a shakeout pattern upon a triple top break at 324. The stock continued higher to the top of the 10-week trading band at 336 in fact. Clearly, the trend remains positive and the stock is still a 5 for 5'er, though overbought near-term. Wait for pullbacks to initiate new exposure going forward. Expect initial support at 320.
QUALCOMM/QCOM (Telephone): Shares of QCOM have been acting very well of late, moving to a new high in October and setting up another reversal up that would form a higher bottom and move the stock toward a potential bullish catapult formation. A break at 47 would complete that pattern and overall this is a bright spot within the tech universe. QCOM is a 4 for 5'er and may be bought. Traders may choose to play the reversal up at $45 with a stop loss at $41, which would then be a first downside break.
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Coach/COH (Textiles / Apparel): The technical attributes of COH remain very strong and the stock continues to make a textbook series of higher highs and higher lows. Most recently, COH has just reversed up to make a higher bottom. The weekly momentum has been negative for 11 weeks; this is an extended period of being negative. Okay to buy COH here with a stop/hedge point at 28, a double bottom. This is also a stock to put on your shopping list of ideas for once the indicators turn back to positive.
EBay/EBAY (Internet): The stock itself meets the criteria that we had laid out in Wednesday’s report. More specifically, EBAY is in an overall uptrend, having held its bullish support line back in April; we have seen higher bottoms since. As well, the stock is a 5 for 5’er, so it obviously has positive relative strength. EBAY has formed a triangle of sorts, setting up the potential for a triple top breakout at 43, while forming good initial support at 39, right at the middle of the ten-week trading band. The upside bullish price objective is 59; and with a stop loss point of 36 initially (a violation of the uptrend line), EBAY sets up as a good risk-reward play. Also, the weekly momentum has just turned back to positive after having been negative for seven weeks. Given this positive technical picture, EBAY is one to consider for your shopping list. Ideally, we would like to see the stock breakout to 43 before buying.
Google/GOOG (Internet): On strong earnings news shares of GOOG ran through previous tops at $320 to complete a shakeout pattern upon a triple top break at 324. The stock continued higher to the top of the 10-week trading band at 336 in fact. Clearly, the trend remains positive and the stock is still a 5 for 5'er, though overbought near-term. Wait for pullbacks to initiate new exposure going forward. Expect initial support at 320.
QUALCOMM/QCOM (Telephone): Shares of QCOM have been acting very well of late, moving to a new high in October and setting up another reversal up that would form a higher bottom and move the stock toward a potential bullish catapult formation. A break at 47 would complete that pattern and overall this is a bright spot within the tech universe. QCOM is a 4 for 5'er and may be bought. Traders may choose to play the reversal up at $45 with a stop loss at $41, which would then be a first downside break.
If you have not already subscribed, please consider doing so. The DW service is worth your time and money.
posted by David M Gordon | 3:31 AM
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