In the post-financial crisis world, many cherished technical indicators and techniques stopped working as expected. The poster child is trading volume, which has been nearly useless on a market-wide basis. And for individual stocks, many basic chart setups led to false starts and quick stop outs. #-ad_banner-#It is therefore refreshing to see a chart pattern working as it is supposed to work, even with the little glitches that seem to linger. That does not guarantee success, but for a stock such as semiconductor maker Altera (NASDAQ: ALTR), the technicals are lining up nicely. Before getting into the chart, Altera benefits… Read More
In the post-financial crisis world, many cherished technical indicators and techniques stopped working as expected. The poster child is trading volume, which has been nearly useless on a market-wide basis. And for individual stocks, many basic chart setups led to false starts and quick stop outs. #-ad_banner-#It is therefore refreshing to see a chart pattern working as it is supposed to work, even with the little glitches that seem to linger. That does not guarantee success, but for a stock such as semiconductor maker Altera (NASDAQ: ALTR), the technicals are lining up nicely. Before getting into the chart, Altera benefits by being a member of the technology sector, which is a leader in the market today. It further benefits by being in the semiconductor group, which itself is breaking out to fresh multi-year highs. Studies have shown that group action is a very big portion of an individual stock’s move. Theoretically, if there is enough business for the sector then there is enough for the company, assuming of course that the company is healthy. And if prices are rising and hurdles, i.e. resistance, are being overcome, then there is a good chance the stock is ready for even more gains. Read More