Perspective

There are many stocks that have been going through a choppy pattern lately. Up, down, up, down in a narrow range at or around a key support/resistance level. A broker's dream, commissions on the entry then commissions on the stop. But you don't want to miss the big move, so what should you do?

Look at two tech stocks as an example. First Priceline, PCLN



Bouncing around support at the 180 level. Looks to be basing...maybe

Now Research in Motion, RIMM



Testing 62.50 and then bouncing back to 60 but seemingly getting support there...or ready for next leg down.


PERSPECTIVE

The key is to step back and gain some insight from a broader perspective. Look now at PCLN on a weekly chart.



Pulling back to the weekly shows you that this is set up to trade lower, provided that the final print on this week's candle upon tomorrow's close, does not exceed 191.12 where it opened. Looking at the after tomorrow's close and seeing 191.12 would just represent more indecision.

Now look at RIMM weekly,



Here a close tomorrow above 61.76 would indicate a possible reversal, and close below 60.10 a continuation of down trend. Even below 60.69 would keep you short if already there.

BONUS TRADE

The world has been waiting for UNG to break the channel. On a hold of 7.70 this is a buy with an initial target of 9.35