Thursday, June 3, 2010


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.


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.


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


  1. Thanks Greg. I always enjoy reading your charts.

  2. My name is Jennifer aka Queenbee. I run a blog called "Inside the Hive." I have given you a spot on my blog list and premiered your June 3rd post copying only the first paragraph with a link to your blog. You should see a small spike in visitors to your blog and thank you as your charts are great. With 20 years of experience you have so much to offer my 150 daily readers. We are disenchanted trader who left Mish's site to start one for trading ideas. Come feel free to join in the comment section as well. We can never have enough feedback. I can be reached from my blog or my email is I only cross link with the best blogs. Yours is outstanding!

  3. Greetings Greg,
    I am a regular visitor/contributor to Queenbee's blog and followed her link to your site.

    As a newbie to TA, I am still getting my head wrapped around all the nuances (and opinions) of Tecnical Analysis. Your charts help provide a good graphical representation of the real picture.