Working Money magazine.  The investors' magazine.
Traders.com Advantage

INDICATORS LIST


LIST OF TOPICS





Article Archive | Search | Subscribe/Renew | Login | Free Trial | Forgot ID?


PRINT THIS ARTICLE

FLAGS AND PENNANTS


Symantec Rests Before Its Next Move

08/09/06 08:06:31 AM
by Arthur Hill

With Symantec consolidating over the last seven days, a consolidation breakout would signal a continuation higher.

Security:   SYMC
Position:   Accumulate

Symantec surged higher in late July with a gap and high volume. After months of wallowing around the 15-16 level, this gap signals a sudden shift in sentiment and could be the start of a significant trend change. The gap is bullish as long as it holds, but the stock is running into stiff resistance just below 18, and follow-through is required for a more significant trend change.

The May high and 200-day moving average mark resistance around the 17-18 level. The stock has traded on either side of the 200-day moving average the last seven days, and this is clearly a battle zone. The May high represents the last reaction high and a move above this level would forge the first higher high in many months.

FIGURE 1: SYMANTEC. The pattern over the last seven days looks like a flag, and this is a bullish continuation pattern.
Graphic provided by: MetaStock.
 
The pattern over the last seven days looks like a flag (Figure 1) and this is a bullish continuation pattern. These patterns represent a rest, and that is exactly what the stock needs after the surge above 17. A break above the upper flag trendline would signal a continuation higher and the upside target would be around 20. Such a move would also break through the 200-day moving average.

The price relative has already broken its May high, and this increases the chances for the stock. The price relative compares the performance of SYMC against the NASDAQ. The breakout in late July shows that SYMC is clearly outperforming the NASDAQ, and relative strength is a bullish sign.



Arthur Hill

Arthur Hill is currently editor of TDTrader.com, a website specializing in trading strategies, sector/industry specific breadth stats and overall technical analysis. He passed the Society of Technical Analysts (STA London) diploma exam with distinction is a Certified Financial Technician (CFTe). Prior to TD Trader, he was the Chief Technical Analyst for Stockcharts.com and the main contributor to the ChartSchool.

Title: Editor
Company: TDTrader.com
Address: Willem Geetsstraat 17
Mechelen, B2800
Phone # for sales: 3215345465
Website: www.tdtrader.com
E-mail address: arthurh@tdtrader.com

Traders' Resource Links
TDTrader.com has not added any product or service information to TRADERS' RESOURCE.

Click here for more information about our publications!


Comments or Questions? Article Usefulness
5 (most useful)
4
3
2
1 (least useful)

Comments

Date: 08/09/06Rank: 4Comment: 
PRINT THIS ARTICLE





S&C Subscription/Renewal




Request Information From Our Sponsors 

DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570

PTSK — The Professional Traders' Starter Kit
Home — S&C Magazine | Working Money Magazine | Traders.com Advantage | Online Store | Traders’ Resource
Add a Product to Traders’ Resource | Message Boards | Subscribe/Renew | Free Trial Issue | Article Code | Search

Copyright © 1982–2021 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.