Stock Technical Analysis: Wk of 9/21/09
Nasdaq continues to trade within the rising wedge pattern. Since breaking out from the resistance, it’s going strong. If you’re thinking of going long, keep your stops tight as it’s approaching the top of the rising wedge. Nasdaq could break through and continue higher, but the risk of a pull back in the next few weeks is definitely there. Clearly a bullish trend still, but be cautious as QQQQ starts to approach $43-44 level.
Financial Select Sector SPDR (XLF)
Financials broke through the resistance and rallied strong, but I’m very skeptical on the long side when it comes to XLF. First, it’s starting to consolidate and hit some resistance at the trendline it broke through previous. Second, I see a MACD divergence between the rising price and the declining MACD. This usually signals a bearish correction ahead. The overall theme here is bullish still just like the other indices, but I’m not all that comfortable about XLF long.
SPDR S&P 500 (SPY)
Similar to what I eluded to for Nasdaq (QQQQ), SPY is still going strong breaking through the previous resistance and making a new high. This bullish trend is resilient and continues to test new highs. If you’re not already long and are looking to take some long positions, hope for a pull-back here before getting in.
United States Natural Gas Fund (UNG)
United States Natural Gas Fund (UNG) made quite a come back and seems to be making a “V-shaped” recovery. Now this is now going to get interesting. It is now consolidating at the prior resistance of $12. I’d expect this resistance to be pretty strong, and I have seen some experts getting rid of their natural gas positions. If you have been riding the rally since the recent lows, it would be wise to lock in some profit by unloading a part of your shares. Next two weeks will be a ride!
SPDR Gold Trust (GLD)
SPDR Gold Trust (GLD) broke through the symmetrical triangle pattern and has rallied since. However, GLD continues to struggle at the next big resistance of $99. Some say this is the start of a reversal and it’s time to short. Others say it will break through the $99 resistance making new highs. It’s hard to say still given this consolidation, but I’m personally leaning towards the latter.
General Electric (GE) Requested by Eric Staedt, Yue Liu, and Gia
I am showing the technical analysis for General Electric (GE) from a different angle this week. Looking at the weekly chart above, I’ve drawn the Fibonacci Retracement looking at the 2 yr highs and lows. As many of you are aware, GE performed quite a rally last week bringing wealth to many who were long. Now, the Fibonacci would suggest that GE still could have room for upside. Assuming 38.2% is the first level to watch for, GE could make another run to the $19 price level in which would face some resistance. Overall, breaking through the long fought resistance at $15 is pretty significant. If you’re long, perhaps lock in some profit by unloading part of your shares, but no reason to think it’s going to the other side just yet.