Mike Paulenoff
01-08-2007, 01:22 PM
With the SMH acting well (and the HHH Internet ETF coming back strongly), two important technology sectors are poised to move considerably higher... Within the SMH, let's take a look at AMAT (14% of the SMH)...
For the better part of 2006 the price action in AMAT produced a huge base-like pattern that is nearing completion, and which could trigger a powerful advance during 2007. Today’s up-spike off of the July-Jan uptrend (especially the series of higher lows) is approaching a test of critical intermediate-term resistance at 19-20, which if (when) hurdled should unleash a powerful upside follow-through towards a next target of 22.
Only a failure to do so, followed by a decline that breaks 18, will significantly weaken the developing chart pattern.
Read more and view the technical chart analysis at http://www.mptrader.com/markets.php
For the better part of 2006 the price action in AMAT produced a huge base-like pattern that is nearing completion, and which could trigger a powerful advance during 2007. Today’s up-spike off of the July-Jan uptrend (especially the series of higher lows) is approaching a test of critical intermediate-term resistance at 19-20, which if (when) hurdled should unleash a powerful upside follow-through towards a next target of 22.
Only a failure to do so, followed by a decline that breaks 18, will significantly weaken the developing chart pattern.
Read more and view the technical chart analysis at http://www.mptrader.com/markets.php