| Technical Analysis TSRA Bull Flags Economic Update |
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| Thursday, February 15, 2007 |
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Morning Update - How to trade a Bull Flag - TSRA
Bull Flag Pattern
The typical Bull flag pattern occurs after a new high has been placed, it is basically a pullback off of the highs often to the 13 or 34 EMA. It is a counter trend pullback/ consolidation move against the bullish primary trend. This counter trend move may consist of a 3 to 5 day sloping pullback maximum. The pullback should occur on light volume. After the 3 to 5 day counter trend consolidation is complete, the stock will then resume its upward primary trend. The Bull flag will of represent waves i to wave ii and wave iii to wave iv of a v wave move. Entry is not initiated until the stock takes out the previous day's high and breakouts out of the counter trend channel to resume the upward trend. The bull flag pattern is used in short term bullish trades.
Tessera Technologies- TSRA- Daily Chart - Bull Flag Pattern
I have mentioned TSRA as a possible new play should the technology sector start to move up. Right now TSRA is on watch alert only. The daily chart illustrates that it is currently in a bull flag pullback channel within the larger uptrending channel. You can see the light volume pullback off of the highs to fill the gap where it bounced off of the 50 day exponential moving average. Should the QQQQ's breakout it will outperform the Q's by far because it is higher beta momentum stock.
Tessera Technologies- TSRA- Weekly Chart - Bullish Ascending Triangle Pattern
The weekly chart illustrates that TSRA is in the process of forming a bullish continuation ascending triangle pattern. As you can see, the TSRA topped in April of 2005 and spent the next 2 years in a classic ABCDE zig zag lateral correction downwards. TSRA placed it's last lows at $24.58 in July of '06. This low, in turn, sparked a 4 week rally, on heavy volume, to test resistance. This rally also caused TSRA to break the wave 3 to 4 downtrend line. The 123 bullish trend reversal marked the beginning of a bullish 5th final wave that TSRA has been in since July 2006. In addition, you can see that TSRA has been trading in an uptrending channel, and above its EMA's. The Indicators & oscillators are in a 123 bullish trend reversal showing bullish divergence and moving up in tandem with price. It is very close to testing resistance at $46.28. Should it breakout out of the ascending triangle price target would be around $60.00. Wait for my buy alert. Right now it is on watch alert.
Edited by: Andrea Victoria Friend aka Daisy
Editorial Assistant for Trending123.com
daisy@trending123.com
BULL FLAGS
 Tessera Technologies, Inc., together with its subsidiaries, develops semiconductor-packaging technology for miniaturization of electronic products. The company operates through two segments, Intellectual Property, which includes license fees for patented technologies and royalties on semiconductors shipped by licensees that employ patented technologies; and Services, which include engineering services. The company's technology enables the production of smaller and faster semiconductors, which are used in various electronics products, including digital cameras, MP3 players, personal computers, personal digital assistants, video game consoles, and wireless phones. Tessera's patented technology enables its customers to assemble semiconductor chips into chip-scale packages. The technology also enables multiple chips to be stacked vertically in a single three-dimensional multi-chip package. Tessera also provides engineering, assembly, and infrastructure services. The company primarily offers its technology to the customers in the United States, Taiwan, Korea, Japan, and Europe. Tessera Technologies was founded in 1990 and is headquartered in San Jose, California.
 TSRA DAILY
TSRA WEEKLY
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