The news may or may not agree with it, but the charts of Temple-Inland Inc. (TIN), Ingen Technologies, Inc. (IGNT.PK), and SIRIUS XM Radio Inc. (SIRI) are flashing some interesting -
perhaps trade worthy - signs. Here's a quick technical wrap-up for each one.
Temple-Inland Inc. (TIN) shares are well up for the last several days, thanks to a nice 'beat' for the company's Q2 earnings... Wall Street was looking for 11 cents per share; the company posted 24 cents worth of earnings per share. A UBS upgrade following that helped spur shares as well.
However -
and perhaps a little pre-emptively - it appears as if the uptrend has faded and rolled over into a downtrend. Today's the second losing day in a row, and both the MACD lines as well as the 'momentum' indicator are in agreement that TIN is rolling over.
That said, given that the breakdown hasn't fully taken hold yet, trader's may wish to wait until the support line is broken (blue) and a lower close -
perhaps under $15.24 - is made.
Support's around $11.20, if/when the breakdown gets moving.
Ingen Technologies, Inc. (
IGNT) has broken past not one but
two big resistance lines within the last two weeks. The initial surge was built on news that Ingen had hired an investment bank to handle a buyout (never mind the fact that there's not an offer on the table yet....Ingen just wants to be ready for the best case scenario).
Though the buying faded after the initial news, it's brewing up again today on more relatively meaningless news, which accents another (more encouraging) point... the buying volume is clearly better than the selling volume.
While the company appears to be 'busy' and the chart is working on a break, a lack of substance behind the news -
and the lack of ability to verify it - means IGNT is still nothing more than a trading stock. If the breakout gets traction, selling at June's peak of $0.02 is prudent.
As much as we've tried to find any reason
not to say the chart of
SIRIUS XM Radio Inc. (
SIRI) is bullish, we can't - SIRI shares are knocking down resistance levels, and doing so on strong volume. The upper edge of a triangle is broken.
The accumulation-distribution lines as well as MACD lines both say the same thing... the buyers just keep coming back for more, buying more on the dips what was sold after the rips.
Though we're looking at a daily chart, the weekly chart suggests the real opportunity here is SIRI as a long-term play. There's a lot of upside recovery room.
Don't worry about the toxic financing and slipping sales - the market doesn't seem to care right now, and is forcing the stock higher. TheStreet.com and the Motley Fool are helping that effort quite a bit. Just keep any Sirius shares on a short leash.
The Small Cap Network newsletter offers commentary and insight that's even more in-depth than what you just read. Plus, our publication offers trading ideas with specific entry and exit recommendations.
