Sunday, April 30, 2006

Amateur Investors Weekend Stock Market Analysis for 4/30/06

The Dow and S&P 500 were basically flat this week while the Nasdaq came under some selling pressure. A longer term chart of the Dow shows that it has rallied back to a previous upside resistance area near 11400 which is where it stalled out three separate times in 2000 and 2001 after attempting to bounce from oversold conditions. The question at this point is will the Dow be able to break solidly above the 11400 leading to a move back to its all time high made in early 2000 near 11750?

As we have seen in the past the future price of Crude Oil may determine whether the Dow eventually rallies back to its all time high or not. The price of Crude Oil which broke above a previous upside resistance area just above 70 a few weeks ago pulled back some this week after rallying over $12 since mid March. However it appears the price of Crude Oil is finding support near its previous resistance level which also coincides with its 20 Day EMA as well.

Our complete stock market analysis can be found at
http://www.amateur-investor.net/Weekend_Market_Analysis_April_29_06.htm

Amateur Investors

Wednesday, April 26, 2006

Amateur Investors Stock Chart of the Week

A stock from our current Top 100 Stocks to Watch List which has completed the right side of a 2 year Cup is COEUR D ALENE (CDE). CDE now needs to develop a Handle over the next few weeks to complete a favorable Cup and Handle pattern.




Remember Cup and Handle patterns can lead to explosive moves in a stock when it breaks out. For example ZORAN (ZRAN) broke out of its Cup and Handle pattern on April 20th and then made a significant upward move on Tuesday April 25th and gained over $6 in one day.



ZRAN was featured by us in our Daily Breakout Report for April 20th at
Amateur Investors

Saturday, April 22, 2006

Weekend Analysis for April 22nd, 2006

Despite the continued rise in the price of Crude Oil the major averages rallied this week although most of the gains occurred on Tuesday. A longer term chart of the price of Crude Oil shows that it has been holding support at its 40 Weekly EMA since the late part of 2003 while remaining in an up trend. Meanwhile this week the price of Crude Oil rose above a significant resistance area near 70 and it looks like this could lead to a move up to the 80 level at some point. As we have seen in the past when the price of Crude Oil has made a significant move higher this has generally had an adverse affect on the Dow. Thus if we see another extended period of higher Crude Oil Prices with the price of Crude Oil eventually rising into the 80's this would likely have a negative affect on the Dow.

Our complete Market Analysis for this weekend can be found at
http://www.amateur-investor.net/Weekend_Market_Analysis_April_22_06.htm