Technical Analysis of STOCKS & COMMODITIES
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Article Archive For Andrew Hetherington
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ARTICLE SYNOPSIS ...This tradable looks like it should be watched closely....
Alcoa Incorporated (AA) Is Breaking Out.
ARTICLE SYNOPSIS ...A quick look at the charts for Alcoa Inc....
McDonalds Corporation Has Broken Its Trend.
ARTICLE SYNOPSIS ...Here's an example of a perfect symmetrical triangle chart formation....
SBC Communications Is Making A Bullish Pattern
ARTICLE SYNOPSIS ...A large ascending triangle on the chart of SBC Communications could offer profitable trading opportunities....
Nortel Networks Still In Trouble
ARTICLE SYNOPSIS ...Going along with the communication sector, Nortel's chart shows bearish tendencies....
What's Happened To Coke?
ARTICLE SYNOPSIS ...Large and powerful formations are not always invulnerable to outside forces, and Coca-Cola is a case in point....
American Express (AXP) On The Slide
ARTICLE SYNOPSIS ...American Express, like so many other equities at this point, is getting ready to make a move downwards....
General Electric Can't Fight The Trend
ARTICLE SYNOPSIS ...General Electric (GE) is the only original Dow component from inception. How is this venerable stock competing with the newer companies?...
What's In Store For DNA?
ARTICLE SYNOPSIS ...Genentech Incorporated (DNA) has been a good long trade since early 2003, going from the $16.00 area in March to a $68.00 high in March of 2004. Currently, it is in a good short position....
Merck and Company (MRK). . . What's Happened?
ARTICLE SYNOPSIS ...The long-term trend for Merck and Company has been in jeopardy since it broke through its support line in December of 2001. What is the new outlook for this company?...
Juniper Networks (JNPR). . .What Is The Right Strategy?
ARTICLE SYNOPSIS ...Juniper Networks (JNPR) is in the midst of confusion. There is a struggle between supply and demand with the supply side winning at this point....
Imclone Systems (IMCL) From A Long-Term Perspective
ARTICLE SYNOPSIS ...The long and the short of it for Imclone....
What Happened To Hewlett-Packard?
ARTICLE SYNOPSIS ...The last time I wrote on this equity it had a very nice head and shoulders bottom reversal pattern. I was anticipating it to go higher over the long-term, but. . . things change. The time to sell long positions was when the long-term trendline was broken on February 23, 2004 in the $23.00 area....
Honeywell Is A Diamond In The Rough!
ARTICLE SYNOPSIS ...Honeywell (HON) is definitely on the move higher, but the question is when to jump into a long position while the general market conditions are short. Examining the monthly, weekly and daily charts will help you make a better decision....
Lucent Technologies Making A Slow Move Down
ARTICLE SYNOPSIS ...A head and shoulders points to downside for Lucent Technologies....
Big Blue Is On The Move
ARTICLE SYNOPSIS ...IBM has recently broken above its $90.00 resistance area. How far will it go?...
Things Are Going Better For Coke
ARTICLE SYNOPSIS ...A large head and shoulders formation in the making gives a possible buy signal for those willing to take a risk....
Manhattan Associates Has Broken Out
ARTICLE SYNOPSIS ...Watch to take a long position in this stock on the strength of a near-perfect ascending triangle....
Hewlett Has Been Revving Up
ARTICLE SYNOPSIS ...In my previous article at the end of February I suggested that the small head and shoulders top pattern would have a pullback into the $17.00 area and then drop to the buy long position of $14.00. This short was profitable at that time and I prognosticated big things to come from this much larger bottom reversal head and shoulders pattern that was looming....
Revisiting Our Old Friend Juniper Networks
ARTICLE SYNOPSIS ...Six months ago I wrote an article about Juniper Networks (JNPR). I examined the ascending triangle and prognosticated a breakout that came to fruition. In addition, I recommended caution since Juniper was still within the pattern and prudence is always necessary. Now, my performance line along the third fan line is still intact and an update is needed....
What's Up With Cisco Systems?
ARTICLE SYNOPSIS ...A triangle formation bodes well for higher prices in the near-term for Cisco....
Compuware Corporation At A Critical Point
ARTICLE SYNOPSIS ...The daily chart of Compuware (CPWR) shows an intriguing 6-month ascending triangle. The volume on this triangle is far from perfect; however, it does diminish from left to right....
Aurizon Mines In Toronto Poised To Jump
ARTICLE SYNOPSIS ...The daily chart for Aurizon Mines (ARZ-T) shows a breakout from the large 14-month symmetrical triangle on this mining and exploration company....
Check Point Software (CHKP) Is Repeating Patterns
ARTICLE SYNOPSIS ...This may take some time to reach but anticipating a strong move is reasonable given the multiple, near perfect pattern forming for Check Point Software....
Semtech (SMTC) Is Moving Higher
ARTICLE SYNOPSIS ...A strong breakout indicates a good buying opportunity for Semtech. How far will it go?...
Cambior (CBJ-T) Is Another Solid Gold Play
ARTICLE SYNOPSIS ...The medium-term prognostication for this equity will be to eventually reach the resistance area in the $6.50 area. Here's how to watch the chart for an advantageous entry point....
Thunder Energy (THY-T) In Toronto Has Broken Out
ARTICLE SYNOPSIS ...Watch the volume as Thunder Energy completes an ascending triangle and double bottom formation....
Akamai Technologies Finally Begins To Fulfill IPO Furor
ARTICLE SYNOPSIS ...After a hard fall, the stock for Akamai Technologies (AKAM) has accumulated and started to rise again....
American Express and the BKX Index
ARTICLE SYNOPSIS ...American Express is looking like a good candidate for an upside break....
Qualcomm, Nortel, and Intel Updated
ARTICLE SYNOPSIS ...Sometimes you have to reverse gears when trading within a pattern. . ....
Nextel Has Turned Around
ARTICLE SYNOPSIS ...Nextel has broken through their rectangle formation that had been in a consolidation pattern going back to November....
Smooth Surfing for F5 Networks Inc.
ARTICLE SYNOPSIS ...A flag formation inside of a larger triangle anticipates a breakout for F5 Networks....
Is Juniper Networks on the Brink of Breaking Out?
ARTICLE SYNOPSIS ...A triangle formation on Juniper Nerworks (JNPR) chart has a bullish tendency but it will not break out unless the volume continues to increase....
Sanmina Corporation is Rounding Higher
ARTICLE SYNOPSIS ...Playing a scallop formation is easier than identifying one....
Bema Gold is Poised to Run Higher
ARTICLE SYNOPSIS ...As safe an investment as there is in the current market? The charts show why....
Hewlett-Packard is on the Slide
ARTICLE SYNOPSIS ...Hewlett Packard (HPQ) is completing another very nice head and shoulders pattern....
Microsoft Ready To Move Higher
ARTICLE SYNOPSIS ...Although this equity doesn't jump like it once did, a move towards the $35.00 - $40.00 areas is likely in the short to medium term....
Broadvision Incorporated (BVSN) Has Turned Around
ARTICLE SYNOPSIS ...It's a little late to get in, but here's an analysis of a turnaround stock....
Citigroup Incorporated Helps Fuel the Financials
ARTICLE SYNOPSIS ...Now is a good time to buy into this stock as it breaks out of an ascending triangle formation....
CMGI Begins Its Breakout
ARTICLE SYNOPSIS ...As many as three different patterns can be found on CMGI's chart, all pointing to a sizeable move up....
Foundry Networks Has Turned the Corner
ARTICLE SYNOPSIS ...Foundry Networks (FDRY) has bottomed just like most of the other networks. However, they all haven't had the same "pop" as Foundry. This equity rocketed off its bottom of $4.08 in October, 2002 and zoomed to $10.88 on December 2 in less than two months....
Nortel Network is Moving Higher
ARTICLE SYNOPSIS ...Technicians love it: A bottom reversal pattern without any complications....
Sycamore Networks Has Seen the Light
ARTICLE SYNOPSIS ...Like so many other stocks, Sycamore Networks (SCMR) has bottomed out. A 7-month bottom reversal-ascending triangle has formed on their daily chart with perfect volume on the creation of the pattern....
What's Up With Lucent?
ARTICLE SYNOPSIS ...Lucent Technologies (LU) bottomed on October 11, 2002 at 0.55 cents. Since that time it bounced up as high as $2.75 on May 29, 2003. Of course, all equities have come way off of the bottom, but some, like Lucent, have taken their time to form consolidation and reversal patterns to prepare for their next move upwards....
The Dow Update
ARTICLE SYNOPSIS ...All charts on the Dow seem ready to jump topside....
Amazon.com, Surprisingly Strong
ARTICLE SYNOPSIS ...Every now and again you get fooled. Previously, I was off base on this very strong chart pattern. Since then, an upsloping trend channel has developed indicating further upside movement for this stock....
GATX Corporation (GMT) Has Bottomed
ARTICLE SYNOPSIS ...GMT's near-perfect triangle formation breaks out to the upside....
Qualcomm Inc. is Heading Lower
ARTICLE SYNOPSIS ...Daily, weekly, and monthly charts are showing formations indicating a drop in Qualcomm's price....
Nortel Networks is Set to Slide
ARTICLE SYNOPSIS ...Here are a number of plays to make on a head and shoulders pattern currently forming on Nortel's chart....
Are You Betting With The Chips?
ARTICLE SYNOPSIS ...Looking at the daily, weekly and monthly charts for Intel Corporation [INTC] may provide some clues for future moves within the computer chip sector....
Flextronics International's Rising Wedge of Worry
ARTICLE SYNOPSIS ...Flextronics (FLEX) has been dropping for some time and this trend will not change. In fact, the future looks quite gloomy for this chart....
A Painful Head and Shoulder is Lurking for Merck & Company
ARTICLE SYNOPSIS ...A head and shoulders pattern with diminishing volume signals a shorting opportunity....
The Dow Update!
ARTICLE SYNOPSIS ...In my recent article "The Dow Explanation" (July 26, 2002), I discussed the last drop on the Dow and how the bounce up and inevitable drop down once again would unfold. It's been two months and we are pretty much at the point I expected....
Digital River Incorporated is Ready to Take a Plunge
ARTICLE SYNOPSIS ...A five-month head and shoulder formation signals a possible shorting opportunity for Digital River, Inc. (DRIV)....
General Motors Is Spinning Its Wheels
ARTICLE SYNOPSIS ...Daily, weekly and monthly charts of General Motors (GM) show several long and short-term opportunities, not in the least is the small head and shoulders formation on the daily chart....
FedEx - Fragile, Handle With Care
ARTICLE SYNOPSIS ...If everyone feels that FedEx (FDX) is invincible they are in for a surprise....
It's Time To Exit Amazon.com
ARTICLE SYNOPSIS ...It is unfortunate for this e-retailer that the expected rebound has come to an end. Amazon.com has bounced up from the $5.51 low of last September to a very respectable and surprising high in May of $20.40....
Triangles, a Pennant and Fan Lines, Realnetworks is Ready to Play
ARTICLE SYNOPSIS ...Amid a montage of chart patterns comes a breakout for Realnetworks....
Rational Software Corp. is Head and Shoulders Above the Crowd!
ARTICLE SYNOPSIS ...A rush of volume should push Rational Software as well as several other equities into finishing their patterns....
Level 3 Communications Has Turned the Corner
ARTICLE SYNOPSIS ...In these volatile times it is difficult to find a long position that makes you feel comfortable....
Palm Inc. Has a Bleak Future
ARTICLE SYNOPSIS ...The near-term future for Palm Incorporated (PALM) has become increasingly weak....
A Double Top for Siebel Systems
ARTICLE SYNOPSIS ...The short-term future for Siebel Systems Incorporated looks weak....
Opportunity in Yahoo's Multiple Chart Formations
ARTICLE SYNOPSIS ...Yahoo has recovered, but there is an opportunity on the short side temporarily....
Rf Micro Devices' Triangle Formation Has Investors Guessing
ARTICLE SYNOPSIS ...This 8-month symmetrical triangle on Rf Micro Devices Incorporated (RFMD) has everyone heading in the wrong direction....
Microchip Technology (MCHP) - A Chart Filled With Caution
ARTICLE SYNOPSIS ...Rising wedge formations tend to have bearish impications, and MCHP is in the process of finishing one....
Trading Tactics: What to Look For When Taking a Long Position
ARTICLE SYNOPSIS ...The general market trend seems to be changing. Here's an example of how to take advantage of it....
Descending Triangles: Brocade Communications Follows the Sector
ARTICLE SYNOPSIS ...Brocade Communications (BRCD) is ready to go with the others in the sector. . ....
Triangles and Fan Lines in Network Appliance Inc. (NTAP)
ARTICLE SYNOPSIS ...Network Appliance Incorporated (NTAP) is ready to drop again....
How Dow Theory Works
ARTICLE SYNOPSIS ...What is Dow theory, anyway?...
Triangle Patterns and Direction Changes
ARTICLE SYNOPSIS ...The chart for Sandisk Corporation [SNDK] shows two distinct triangle patterns in the last year....
Symmetrical Triangle
ARTICLE SYNOPSIS ...Applied Micro Circuits Corporation is either a good long opportunity with very limited downside risk or it will become a nice short if it breaks the $7.85 line....
Line Formations
ARTICLE SYNOPSIS ...The line formation is one that illustrates a balance in the supply and demand equation. In other words, the buyers and sellers are equal in this congestion area....
Island Reversals
ARTICLE SYNOPSIS ...Every now and again you see this style of pattern, an Island Reversal. Although, it is not a major reversal pattern it does have temporary trend implications that can be profitable for trading....
Caterpillar Inching Forward
ARTICLE SYNOPSIS ...For the past five years Caterpillar (CAT) has not been known as a market mover. It has bounced anywhere from $30.00 - $65.00 throughout this period. It is now time for a move upwards....
The Hammer is About to Fall at Home Depot
ARTICLE SYNOPSIS ...The previously invincible home improvement behemoth Home Depot (HD) is ready to drop in spite of a strong housing market. Is this a contradiction or a sign of things to come?...
The Rising Wedge of Worry!
ARTICLE SYNOPSIS ...With a rising wedge formation forming on the chart for Krispy Kreme doughnuts, the stock could be in for a downward move....
Triangles and Fan Lines: Are All the Box Makers Heading Lower?
ARTICLE SYNOPSIS ...A look at Gateway Inc. and Apple Computer Corporation brings up the question, is a weak sector getting weaker?...
Descending Triangle and Fan Lines: Hewlett-Packard Reboots
ARTICLE SYNOPSIS ...Even a less-than-perfect symmetrical triangle can be an indication of downward movement for Hewlett-Packard....
Rectangles and Fan Lines: Is Dell Computer in Trouble?
ARTICLE SYNOPSIS ...Although Dell Computer weathered the downturn in the technology industry better than most, the short-term outlook still looks weak....
Ascending Triangles: The General Keeps on Marching
ARTICLE SYNOPSIS ...An early warning for Dollar General (DG) shows up in an ascending triangle and fan line formations....
Krispy Kreme Has Lost its Luster
ARTICLE SYNOPSIS ...In an earlier article at the end of February I discussed the rising wedge on Krispy Kreme Doughnuts (KKD). This big bearish pattern with the smaller head and shoulders pattern within has changed somewhat since that discussion, so I thought an update was necessary....
Nextel Communications - The Wireless Evolution
ARTICLE SYNOPSIS ...The wireless age is upon us, however, we aren't there yet....
The Dow Explanation
ARTICLE SYNOPSIS ...Over the past several weeks I have observed few who would actually make a prognostication on the Dow. I did hear analysts mention the number 7400 once or twice as the bottom but did not see an acceptable chart to back them up. Here's my analysis of the state of the Dow and my predictions for current and future movement....
Manhattan Associates Inc. at "Half Mast"
ARTICLE SYNOPSIS ...Manhattan Associates Incorporated (MANH) is at the end of the supply chain....
E.I. DuPont de Nemours and Company (DD) Are Looking Weak!
ARTICLE SYNOPSIS ...Trend channels within a larger head and shoulders formation make this stock tradable in a number of ways....
American Express ... Membership Has Its Rewards?
ARTICLE SYNOPSIS ...Take advantage of the multiple chart pattern formations on American Expess (AXP)....
International Paper is Turning Into Pulp
ARTICLE SYNOPSIS ...International Paper Company (IP) has formed a similar pattern to many other Dow components and now this US paper and packaging behemoth is ready to drop....
Symmetrical Triangle & Fan Lines: What happened to Citigroup?
ARTICLE SYNOPSIS ...The best investment advice you will receive -- if a certain Prince is interested in buying long then you should be selling out your long position or shorting the equity!...
The Tide Has Turned for Procter & Gamble
ARTICLE SYNOPSIS ...It has been a good ride up since April 2001. Now it is time for a breather for Procter and Gamble (PG)....
A Rectangle & Fan Lines Show Alcoa Running Out of Steam
ARTICLE SYNOPSIS ...Over the past two years most publicly traded companies have seen their equity price drop substantially. On the other hand Alcoa (AA) has survived and even thrived in hard times....
Working Money: How Dow Theory Works by Andrew Hetherington
ARTICLE SYNOPSIS ...Working Money: How Dow Theory Works by Andrew Hetherington The Dow Jones Industrial Average (DJIA) is an index of the price fluctuations and volume for 30 bluechip equities. The DJIA's companion index is the Dow Jones Transportation Average (DJTA), which is made up of freight, airline, courier, trucking, and rail equities. According to Dow theory, the DJTA confirms the movements of the DJIA. This confirmation usually lags after the DJIA has already completed its move. However, there are times when the two move almost in tandem....
Are you bidding on EBAY?
ARTICLE SYNOPSIS ...The resilience of eBAY (EBAY) is evident in the chart over the past year. Even in the bad times it flourished. . . somewhat. Now it's time for EBAY to correct....
Patterns Within Patterns
ARTICLE SYNOPSIS ...There are always patterns within patterns. Network Appliance Inc. (NTAP) is a classic example of this situation. This exquisite illustration demonstrates the pitfalls and the potential rewards of one such situation....
Chips, Chips, Chips
ARTICLE SYNOPSIS ...Where will Intel (INTC) and the Philadelphia Semiconductor Index (SOX) go? It's an interesting thought since I heard an analyst being optimistic last week. I knew that was reason enough to look for pessimism....
The Power of the Double Top
ARTICLE SYNOPSIS ...The double top formation can be an early warning of ID (impending doom) to come. A few recent examples of this formation can be seen on the charts of Cisco (CSCO) and Broadcom (BRCM)....
Is PMC-Sierra Heading Higher or Lower?
ARTICLE SYNOPSIS ...It's always very tricky playing long or short within the pattern. Here's an example with PMC-Sierra that demonstrates this scenario....
A Change in Market Direction
ARTICLE SYNOPSIS ...The market is now making its eighth change in direction in 23 months. It is heading down for a short while, and this will be the time to take your long positions....
Smile, It's Kodak Time
ARTICLE SYNOPSIS ...Eastman Kodak has recently broken out of its 5-6 month accumulation pattern....
Philip Morris Has Safety and Growth Potential
ARTICLE SYNOPSIS ...Where can I safely put my money to work and receive a reasonable rate of return? The answer is in Philip Morris (MO). Naturally, there are some negatives attached to this equity, but it's a very strong chart. If you are able to focus on the medium to long-term time horizon, then this is for you!...
Reversal Patterns in the Networks
ARTICLE SYNOPSIS ...What if I were to tell you your future lies within the networks. You'd probably think, sure it does and where is that swampland in Florida for sale? Well, it's true. It's always been my intention to buy what everyone else is selling. As simple as that sounds, you need to know when to buy....
JP Morgan is Chasing Higher
ARTICLE SYNOPSIS ...I suggest selling into the breakouts of this stock while others are chasing them higher or lower, and buy or sell once again on the throwbacks and pullbacks....
A Breakout for Alcoa?
ARTICLE SYNOPSIS ...The daily chart of Alcoa shows a much brighter future in the near-term....
Heads & Shoulders for SBC Communications
ARTICLE SYNOPSIS ...The daily chart for SBC Communications Incorporated (SBC) shows a breakout from a complex head and shoulders pattern in the $28.00 area. Are they poised for the long distance ride?...
Exxon Mobil is Forging Ahead
ARTICLE SYNOPSIS ...This one almost seems too easy. Naturally, this will be cursed since I said this. Nonetheless, this industry behemoth is ready to spring higher....
Research In Motion and the Falling Wedge
ARTICLE SYNOPSIS ...Research In Motion (RIMM) is ready to leap forward out of falling wedge patterns that appear on both its daily and monthly charts....
General Electric is Ready to Light the Way!
ARTICLE SYNOPSIS ...General Electric is about to break out topside of a 3-month ascending triangle....
A Perfect Triangle for SERENA Software
ARTICLE SYNOPSIS ...The stock price for SERENA Software broke below its triangle formation recently. A quick look at volume can help you judge the strength of the triangle formation....
United Technologies Corporation Will Not be Flying High for Much Longer
ARTICLE SYNOPSIS ...If you are holding this equity in a long position, the time is right to abandon your long holdings and go short....
Rounding Top at Wal-Mart
ARTICLE SYNOPSIS ...Throughout these past two difficult years Wal-Mart (WMT) has held up considerably well. As WMT approaches its September low it is difficult to believe it will smash through this area, but it will happen....
A False Breakout For Centex Corporation
ARTICLE SYNOPSIS ...After breaking below its symmetrical triangle formation, the stock price for Centex Corporation (CTX) looks to be headed towards its intermediate-term trendline....
GATX Corporation is Losing Steam
ARTICLE SYNOPSIS ...The ascending triangle formation on the chart for GATX Corp. (GMT) broke to the downside back in June. What has happened since and where will it go from here?...
Which Way Will J.B. Hunt Services Go?
ARTICLE SYNOPSIS ...Volume plays an important role when analyzing a breakout from a chart pattern. Here's a recent example on the chart for J.B. Hunt Transport Services (JBHT)....
Boeing Takes a Dip
ARTICLE SYNOPSIS ...Over the past three months a nicely developed double top has formed for Boeing (BA)....
Island Reversal Patterns -- Will the Triple Q's Drop?
ARTICLE SYNOPSIS ...A recent island reversal pattern on the QQQ index raises a flag of caution....
Micro Cap UTS Energy Corporation on the Rise
ARTICLE SYNOPSIS ...Recognizing a cup and handle formation can be a difficult task. Here are some steps for identifying cup and handle and rounding bottom patterns....
The Microsoft Effect
ARTICLE SYNOPSIS ...The charts for Microsoft (MSFT) and the Dow Jones Industrial Average (DJIA) are at critical junctures and deserve a closer look....
An Early Warning From the Broadening Formation
ARTICLE SYNOPSIS ...Last Thursday when Compuware Corporation (CPWR) tumbled from $11.10 on Wednesday's close to a low of $7.51 on Thursday many were wondering what happened. This 32% loss in one day demonstrates the fragility of today's markets....
Symmetrical Triangles - How the Mighty Have Fallen
ARTICLE SYNOPSIS ...In recent months, several symmetrical triangles have broken to the downside on the chart for BCE Incorporated. What's in store for BCE, Inc., the Canadian telecom company?...
Trading Tactics - When to Buy?
ARTICLE SYNOPSIS ...When is the best time to buy on a head and shoulders bottom reversal?...
Trading Tactics - When to Sell?
ARTICLE SYNOPSIS ...When to sell? It is the age-old question. There have been many explanations and theories. Try and keep it simple....
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