Stock Technical Analysis: Wk of 8/31/09

Last week ended up being a consolidation week for many indices.  Nasdaq stayed flat throughout the week except Friday which opened significantly higher.  However, even Friday’s initial strength faded during the day, closing the week pretty flat.   At this point, there is no reason to think that the bullish trend is ending, but keep an open minded view on the market because indecision is kicking in right now waiting for its next move.

SPDR Financial (XLF)

After breaking through the critical $13 level, XLF is continuing its way up.  It did re-test the $13 support earlier this week, but it bounced back from the support with a force.  The financials broke through the resistance last week and hovered above throughout the week.  So far this new resistance is holding up but has not started taking off either.  I would be interested in buying long once it starts to lift off from this range.

S&P 500 (SPY)

Since the strong rally two weeks ago, S&P 500broke through the prior support and held its level last week.  At the same, the entire week was extremely volatile throughout the day, which represents indecision.  Now 50% above the March lows, it sure is over-extended.  I am personally very hesitant to go long at this level.  If I’m looking for the opportunity to go long, I’d like to see a pull back to the $98 level.

United States Natural Gas Fund (UNG)

UNG continues to be a bottomless pit right now, making new lows each week.  Friday’s sell off was quite a jab to those who are long on UNG and natural gas.  Now the seasonal trend says natural gas will go up during the Oct/Nov time frame, but I’m not sure how much lower this can go.  There are other investments opportunities out there in my mind.

Gold Trust Shares (GLD)

Gold has been forming a triangle getting ready to either break up or down soon.  It has been trading both above and below the 50 day MA for quite some time, unable to make the next big move.  Keep an eye on the price for the next week and you should be able to see a break up or a break down and decide your next move.

General Electric (GE) requested by Eric Staedt

General Electric did not go anywhere last week, failing to break out from the recent high.  It looks like an inverted head-and-shoulders is forming, which would make this a bullish stock.  The first step for GE at this point is to break through the previous resistance.

Research in Motion (RIMM) requested by Suzann Flamm

RIMM is trading in a narrower and narrower triangle range waiting to break up or down.  Instead of getting into a position now, I would pay attention to this channel and look for a trend change.

Harley Davidson  (HOG) requested by Martyn Byrne

HOG is looking to break through the resistance it failed to break through earlier last month.  This week will be critical for Harley Davidson from a technical standpoint so keep an eye on it!