Monday, June 29, 2009

Weekly Stock Pick

Buy Sell Hold
The Market Last Week

The September NASDAQ 100 was higher overnight as it extends last week's rally above the 20-day moving average crossing at 1469.90. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If September extends last week's rally, the reaction high crossing at 1516.00 is the next upside target. Closes below the 10-day moving average crossing at 1454.27 would temper the near-term friendly outlook in the market. Closes below last Monday's low crossing at 1412.00 would renew this month's decline. First resistance is the overnight high crossing at 1482.75. Second resistance is the reaction high crossing at 1516.00. First support is the 20-day moving average crossing at 1469.90. Second support is the 10-day moving average crossing at 1454.22. The September NASDAQ 100 was up 5.50 pts. at 1482.25 as of 5:53 AM CST. Overnight action sets the stage for a higher opening by June NASDAQ 100 when the day session begins later this morning.

The September S&P 500 index was higher overnight as it consolidates above the 10-day moving average crossing at 906.67. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 920.44 are needed to confirm that a short-term low has been posted. If September renews this month's decline, the reaction low crossing at 874.00 is the next downside target. First resistance is the 20-day moving average crossing at 920.45. Second resistance is this month's high crossing at 952.50. First support is the 10-day moving average crossing at 906.70. Second support is last Tuesday's low crossing at 884.30. The September S&P 500 Index was up 3.70 pts. at 917.60 as of 5:56 AM CST. Overnight action sets the stage for a steady to higher opening by the September S&P 500 index when the day session begins later this morning.

My Stock Pick This Week

Short-Sell Microchip Technology Ticker MCHP

Sell Entry: 23.27 to 22

Stop-Loss: 23.51

Take Profit Areas: 19.87 to 19.51, 19.02 to 18.69, 16.27 to 15.95

Microchip Technology Company Profile

Microchip Technology Incorporated, together with its subsidiaries, develops and manufactures semiconductor products for various embedded control applications. Its product portfolio comprises 8-bit, 16-bit, and 32-bit PIC microcontrollers; and 16-bit dsPIC digital signal controllers, which feature on-board flash memory technology. The company also offers development tools; analog and interface products, including power management, linear, mixed-signal, thermal management, and interface products; and memory products, which primarily consist of serial electrically erasable programmable read-only memory products. It serves consumer, automotive, industrial, office automation, and telecommunication markets. The company markets its products primarily through a network of direct sales personnel and distributors in the Americas, Europe, and Asia. Microchip Technology Incorporated was founded in 1989 and is based in Chandler, Arizona.

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