Our analysis is based on long term trends, and if they are promissing, short term analysis. First, we view the
3 year weekly charts, followed by a 1 year daily chart. This analysis allows you to view the larger picture and trend,
rather than just looking at a short term prospective. This way, you can use short term volatilty to your advantage, if the
long term trend is positive.
You will see a summery of the stock we are analyzing, followed by the 3 year and 1 year charts. At the end, you will see a technical analysis summery. That's it,
to the point technical stock market analysis daily!
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Technical Analysis for March 6 2006
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| STOCK: PALM |
WEBSITE: www.palm.com |
| CURRENT PRICE: 41.97 |
TREND: HITTING RESISTANCE LEVELS |
| TARGET PRICE: N/A |
RECOMMENDATION: PASS/TAKE PROFITS |
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Long Term Chart (Weekly 3yr) - To view the bigger picture
Charts Courtesy of StockCharts.com
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Short Term Chart (Daily 1yr) - Where to take a position
Charts Courtesy of StockCharts.com
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Palm is another email request from one of our valued visitors. Remember, send us your stock picks and we’ll try to get them online. Ok, now to the task at hand. This Nasdaq listed stock has been on a tear over the past four months, and is coming up to a critical level here, as it meets strong resistance as shown on the long term chart above. Whether or not it will break through is not clear yet, and this should be watched closely, as any break through on volume would be extremely positive, but this may not happen here at its first attempt to break through in over a year. The MACD histogram is not gaining higher ground at the price increases, which shows a weakness in the upward momentum here, and provides some evidence that it will not break through. The money flows are also showing premature signs of turning here, but you wouldn’t want to bet on such a weak signal here. Taking a look at the short term chart, you can the current price well above both moving averages, which is an very positive technical point. On the other hand, the MACD is failing to reach new highs, and RSI is also showing weakness here, and may cause this stock to bump its head against the longer term resistance and fall back here.
Bottom line, if you take a look at both long and short term indicators, this stock may be ready for a break here, and should fall back and consolidate from here. This may be a good time to take profits. If it should break through long term resistance though, which we doubt, you should go long.
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