Home > Apprentice Trader Journals > $Debbie: What is the trade in ORCL and QCOM?

$Debbie: What is the trade in ORCL and QCOM?

ORCL

On the daily chart ORCL has been in a up trend since March; however, the trendline on the daily was broken around Sept 16th. Since then ORCL has been trading in a range between 20.oo and 23.00. In addition, it broke below the 20, 50, and 200 SMA signaling change in order flow since that time. But once it hit 20.00 price action bounced and seemed to tun up. On Friday (Oct. 16, 2009) it broke back above the 20, 200, and 50 SMA on the daily.

The monthly chart is flat and the hourly chart is also flat. Friday there was a momentum move to the upside which can be seen clearly on the daily chart. On the 15 minute chart we can see that the momentum move from the hourly created a trend in ORCL on the 15 min from the open until around 1:00 or 1:30. Sadly that great sign of upward movement weakended in the afternoon on Friday.

Despite the weakness in ORCL at the end of Friday, this trader is stalking ORCL to see if the price action pushes up off the 20 SMA on the daily.  If ORCL gains some momentum and takes out the highs then order flow to the upside could continue and create a nice trend. This developing trader is on the sidelines watching for direction in ORCL.

 

QCOM

On the daily chart we have been range bound since around July till end of Sept. Then in October QCOm broke below the 20 and 50 SMA and has tested the 200 SMA  a couple times or so. The 200 SMA is acting as the support at this time and price action can’t seem to break it and stay below. It also has bounced off the 200 200 SMA but can’t seem to hold any significant momentum to reverse and push back above the 20 and the 50 SMA for a change of order flow from the bias to the down side to a bias to the upside intraday.

Complicating QCOM’s price action to the downside, is the overall market’s inability to truly break down. Any shorts at this time are very short term and not aggressive and this the case in QCOM.

This developing trader is on the sidelines for now in QCOM until we continue down and hold  (by consolidating) below teh 200 sma. I would not go long this stock until it completly shows signs of reversal as the bias in the stock is currently to the downside in all  time frames even though it remains range bound and the short side is limited.

Profitable Trading ALL!

Debbie

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