SNMX
Budd Foxx
Breakouts and Technical Analysis of Chart Patterns
Gapping Up | |
ADEX +24% (KLAC changes its offer to cash rather than stock), KMI +21% (receives going private proposal; KMP +5%), CGPI +16% (gets FDA approval for Oracea), IDT +15% (mentioned positively in Barron's), VICL +10% (to begin Phase 3 trial), TRB +7.6% (announces large share buyback), PEIX +5.6% (bounces after 6.4% drop on Friday), SIRI +5% (Lehman upgrade), NG +4.5% (to acquire "green power" co), EP +4% (in sympathy with KMI), SLW +3.9% (mining stocks strong in pre-mkt), PVX +3.2%, VOD +3.1% (reports MarQ), MVL +2.7% (X-Men strong debut at box office), TLM +2.6%, ECLP +2.5% (FBR upgrade), JBLU +2.3% (Merrill upgrade), SUNW +1.8% (UBS upgrade)... Under $3: HCTL +72% (reports Q1). |
One trick to buying off correction-recovery patterns is spotting the point where new buyers have overcome the so-called weak holders. Long, flat bases wear out the weak holders. Cup-with-handle bases scare and wear them out. Double-bottom bases lull the weak holders into optimism, then take them out and shoot them.
Traders also call this formation the "W" pattern because the price traces something resembling the letter. This is a bullish pattern, although it's more failure prone and occurs less frequently than, say, the cup-with-handle, the best known of the correction-recovery patterns.
Gapping Up: EXPD +13%, FEIC +10%, FNET +9.4%, POL +9.4%, MANT +8.9%, IMOS +6.8%, WFMI +6%, USU +2.9%, THE +2.9%, CRDN +2.1%, TZOO +1.9%, TIE +1.7%, AMZN +1.4%... Gapping Down: IPSU -18%, VPHM -14%, ELSE -10%, ERTS -8.6%, CHS -8.4%, JDSU -5.8%, CECO -5.7%, ALTI -5%, MGPI -4.3%, PEIX -4.2%, PAAS -3.7%, UBS -2.4%, ADM -2.3%, STN -2%, AET -1.9%, HAL -1.9%, Under $3: VWPT -17%. |