| Chart Patterns OIH AMGN CAT GPRO |
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| Wednesday, April 18, 2007 |
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Pre-Market Update - OIH, AMGN, CAT, & GPRO
Oil Services Holders ETF (OIH) - Daily Chart
The daily chart of the OIH illustrates that it broke out of an ascending triangle in late November 2005 and has rallied higher ever since. The OIH has been parabolic up and that is not a pattern, you can't trade that. The OIH is up 17% this month. I want to update this chart because short term a correction has just started. We got out of our energy stocks before today, ahead of the correction. As you can see, the OIH is down 3% today at $149.00 on strong volume. As long as the OIH does not overlap $136.09 then the it could be doing a subwave 3 of 4 and then reverse and go up to form wave 5. During this correction we don't want to ride our stocks back down. This correction could last for weeks. We will rotate into utilities, drugs, and to a lesser extent metal stocks.
Amgen, Inc. (AMGN)- Weekly Chart
The weekly chart of AMGN illustrates that it has broken out of an ascending triangle. It is now back testing the break out line and the weekly candle is forming a bullish tail or hammer type candle. The pull back has been on light volume and there is no overlapping of the previous back test. This is not a recommendation to buy AMGN. I just wanted to bring up this chart in order to watch it to see if the biotech / pharma sector can start catching a bid.
Caterpillar, Inc. (CAT)- Daily chart
I went through all the charts of the Dow stocks and they look just awful. The only Dow stock that looks good is CAT. The daily chart of Caterpillar illustrates that it has broken out of an inverted head and shoulders pattern. As you can see CAT pulled back to the 13 day EMA and then reversed. This stock has held up the best out of the Dow stocks. The chart looks bullish with indicators and oscillators moving up along with price.
Gen-Probe Inc. (GPRO)- Weekly Chart
On the weekly chart, GPRO is in a long rectangle / slim jim. In addition, it held the uptrend line on the weekly at $38.36. GPRO is bullish on all time frames. It is one of my favorite stocks. In addition, the Stock scan has picked up GPRO as a bullish play. Indicators and oscillators are bullish. GPRO is overbought in terms of stochastics, which is good, because this is when stocks make their best gains. The stochastics are bull flagging. However, since it is in a rectangle pattern it could also reverse and go down to the $30.00 area and still hold the pattern. There is also huge short interest in this stock which should propel it higher. My target is in the $70.00 -- $80.00 range once it breaks out above $53.00.
OIH--LAGGARD STOCKS LIKELY CATCH BIDS, WHILE FRONT RUNNERS PULLBACK
AMGN
CAT
GPRO
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