| Stock Chart Patterns Measure Distance Three |
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| Sunday, January 7, 2007 |
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Weekend Update - Chart Patterns Measure Distance Part 3- CAT, GE, IBM, INTC, EOG Charts
On the last update I discussed how Chart Patterns measure distance. I also talked about patterns within patterns and I used the charts of ZOLL, EPIQ, EOG & SU as examples. I would like to continue the same theme in this update. However, we will look at different charts.
Caterpillar, Inc. (CAT)- Weekly Chart - Dow Jones 30 Index- Optionable
I know that I have been a CAT basher in the past, but I am eyeing this one closely. I think there will be opportunity in this stock eventually. The weekly chart of Caterpillar illustrates that it has been trading in a wave 3 to wave 4 counter trend pullback channel since April of '06. As you can see, CAT has been holding it's uptrend line since it placed it's recent lows at $58.99. CAT has been trading in a tight trading range and basing for past 4 months. It is also trading under it's moving averages. CAT remains in a 1-2-3 bearish trend reversal. However, the PPO and the stochastics appear to be forming a bottom. If CAT breaks the long term uptrend line it is in trouble, but if it can take out the downtrend line at $65.00 it will be a good trade. I think the chart is promising enough to put CAT on the watch list. Wait for my buy alert.
General Electric Co. (GE) -Weekly Chart - Conglomerates - Optionable
The weekly chart of GE illustrates that it has broken out of an ascending triangle pattern. It is trading nicely above it's moving averages which have crossed over and are in a bullish fan. Increasing volume has come into support the breakout. Furthermore, the indicators and oscillators are in a 1-2-3 bullish trend reversal. I would like to buy GE on a bcaktest to the breakout line. Wait for my buy alert.
International Business Machines (IBM) - Monthly Chart - Computer Hardware - Optionable
The monthly chart of IBM illustrates that it is forming an ascending triangle. It has just completed it's wave 3 to wave 4 correction. The moving averages are just crossing over, which is bullish. Volume has been coming into the stock steadily for the past 7 months which is a sign of institutional accumulation. Furthermore, it has just had a bullish Aroon cross, and the WM% is in a bullish trend. The PPO is showing bullish divergence and it is now curving upwards. The stochastics are also bullish as is the RSI.
Intel Corp. (INTC) - Weekly Chart - Dow Jones 30 Index - Optionable
The weekly chart of INTC illustrates that it is in a symmetrical triangle pattern. The moving averages are converging which is bullish. Volume has been coming into the stock steadily since it placed it's lows at $16.57. Furthermore, the Aroon is in a bullish cross, and the WM% is in a bullish trend. The PPO is showing bullish divergence and it is now curving upwards. The stochastics are pointing down, but the overall chart looks bullish. Wait for my buy alert on the stock.
EOG Resources, Inc. - (EOG) - Weekly Chart- Ascending Triangle Pattern - Energy Sector - Optionable
EOG presents itself as a value play with a P/E of 11.47. EOG is in an ascending triangle pattern. Within that triangle pattern, you can see a smaller symmetrical triangle pattern. EOG has been contracting up and down within the triangle but it has held it's uptrend line and then bounced right off of it. If you look at the volume, you will see that heavy volume has come into support the dips to the uptrend line which is bullish action. The Aroon juts had a bullish cross and the PPO is beginning to show positive divergence, as is the WM% . The RSI and stochastics are still bearish. EOG is also a lower risk investor trade, meaning that it is meant to be held for 6+ months or until price target is reached at $95.00. This is a macro play .
Edited by Daisy
Andrea Victoria Friend aka Daisy
Editorial Assistant for Trending123.com
daisy@trending123.com
CHART PATTERNS MEASURE DISTANCE
CAT
GE
IBM
INTC
PATTERN WE ARE PLAYING
EOG
EOG
SECTOR PERFORMANCE
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