April 7, 2008

The stocks in today's report:

Yahoo (YHOO) Assuming that Microsoft's (MSFT) attempt to buy Yahoo (YHOO) fails based on Yahoo's interest at obtaining a better price, our analysis tells us that YHOO's share price is poised to move higher so long as the stock remains over longer term intra-channel converted support levels.  Our analysis suggests that the stock is in the process of increasing from support to resistance within its longer term channel and that tells us to expect higher levels.  The only red flag would be a reversal below intra channel converted support.  Therefore, treat this as a catalyst for YHOO going forward.  We have identified this as longer term parameter #2 in our real time trading report.  If YHOO holds longer term parameter #2 expect the stock to increase to longer term parameter #3.  However, a decline to longer term parameter #1 is likely if #2 breaks lower instead.  Here are the details: YHOO Report

Motorola (MOT) Motorola looks broken and our charts tell us to expect it to remain broken until longer term support is tested.  We have identified longer term support as longer term parameter #1 in our real time trading report for MOT.  The stock has recently tested longer term parameter #2, and this converted resistance level held.  That is a bearish sign, and so long as this converted resistance level continues to hold the stock is poised to decline from current levels and test longer term parameter #1 again soon.  Therefore, barring surprising events, expect a decline from MOT even from these low levels, and until support is tested.  We have identified these important parameters in our report: MOT Report

Novartis (NVS) Our analysis for NVS is surprisingly bearish, but contingent on one important factor: NVS failed to test longer term support as defined in our report, and it seems to have begun a premature increase from recent lows.  The determining factor is intra-channel resistance levels.  The news from Monday has made intra-channel resistance even more important.  If the stock remains under this level of resistance from this point forward, a decline to longer term support as defined in our report will take place.  We have defined this as longer term parameter #1.  If NVS remains under longer term parameter #2 expect a decline to longer term parameter #1 and a successful test of longer term support.  A break above #2 would present a bullish case though, and suggest that higher levels lie ahead instead.  Here's the report: NVS Report

Good Trading

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