| CHART PATTERNS IYR NAT NBIX PSYS |
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| Friday, January 27, 2006 |
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Weekend Update- IYR,NAT,NBIX,PSYS
Real Estate iShares ETF - (IYR)-Daily Chart
The IYR daily chart illustrates that it is forming a large ascending triangle. As you can see by looking at the chart the IYR has broken out of that triangle today. The IYR is up 1.50% at $68.92. I am bringing up this chart to point at the fact the strength in this ETF will also bring strength into the HGX and housing stocks will likely soon catch a bid. Furthermore, indicators and oscillators are in a bullish trend reversal and are making new highs along with price.
Nordic American Tanker Shipping Ltd. - (NAT) - Daily Chart
The NAT daily chart illustrates that it is forming a large falling wedge reversal pattern. As you can see by looking at the chart the NAT has broken out of that the falling wedge in the last few trading days. NAT is up 1.18% at $31.75. I having been avoiding the tankers lately, however I am now bullish on this sector and this stock. Hence, I will add this stock to the portfolio table tomorrow. I would buy a back test to the low $30 level, or buy at the pivot level. I will send out an alert when NAT triggers.
Neurocrine Biosciences, Inc. (NBIX) - Weekly chart
The weekly chart shows that NBIX is forming a huge ascending triangle. Once it breaks out of the triangle there is no overhead resistance. Therefore, I am adding NBIX to the portfolio table. Indicators and oscillators are bullish. I recommend you hold this stock, target is still a way off at $78.00.
Psychiatric Solutions, Inc. (PSYS)
The PSYS daily chart illustrates that it has broken out of an ascending triangle. As you can see by looking at the chart the PSYS is forming a bullish pennant/bull flag. PSYS is up 0.43%% at $32.80. I am bringing up this chart because you may want to buy it as a day trade. When you buy a bull flag there are rules to executing that type of trade. This is the rule -- you may only buy once it has taken out the previous day's high. Once it crosses $33.01 you may buy it. You then set your stop loss at the previous day's lows, which is $32.23. Therefore, your risk for the trade is 0.76 cents, while you upside potential is until it stops going up. Remember, if it does not take out the previous days highs, you do not execute that trade. In any case, this stock looks poised to move to the $40-$45 area.
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