Stock Technical Analysis: Wk of 9/7/09

Nasdaq QQQQ bounced back up from the trendline aiming to test the previous high.   Now that many investors are coming back from a low trading month, you should expect to see more volatility.  It will be interesting to see if it manages to reach the previous high of $41 or not.  If it doesn’t you could be looking at a head-and-shoulders pattern, which is a bearish pattern.  Again, no breakout from the rising wedge pattern yet, so I will continue to keep an eye on it to look for opportunities.

Financial Select Sector SPDR  (XLF)

Financials faced a pretty big distribution day last week and inching to recover from it.  It broke through the blue trendline, which definitely changes the game a bit.  It also looks like head-and-shoulders pattern is forming, so once I confirm the pattern, I would be interested in going short.

SPDR S&P 500 (SPY)

S&P 500 faced some sell off last week but still managed to maintain its trendline.  Similar to XLF, it looks like head-and-shoulders pattern is possible here.

United States Natural Gas Fund (UNG)

Since breaking through the last support, natural gas (UNG) continuously made new lows.  It has just been ugly.  Now UNG had a pretty good day on Friday.  Could this be the bottom? No one knows.  Again, there are better trades out there short-term in my mind.

SPDR Gold Trust (GLD)

I posted last week that Gold broke out from the triangle pattern.  It’s definitely a bullish sign and so far the prices confirm that.   If it can break through the $99 resistance, GLD is looking good.

Bank of America Corporation (BAC) Requested by Chris Donaho

Bank of America is forming a similar pattern to the overall financial index in general (XLF).  If it can break through the ~$18 resistance, the next major resistance isn’t until $24 range.