Posted by 23 February 2006

Chart Request: Atmel (ATML)

From Max:

Hey Mike just trying to hone my TA skills and ATML looks like a good long, entry at 5 on strong volume. What do you think?

Although I’m not a fan of trading breakouts, especially on a stock that’s up so much (135%) in a few months, I do agree with the technical read. Nonetheless, you can still have a reasonably tight stop by buying above 5 and putting a stop below the recent consolidation.

Another option, if the stock slides, is to look for a reversal near the bottom of its trend channel.

Here’s the chart:

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Comments

  1. Posted by Erik DeVito on February 23, 2006 at 9:58 pm

    Mike
    Could you please take a look at MET for me and tell me what you think. This is a high volume slow mover but I think it could be ready for a big push upward. It looks to me like it’s been hovering around it’s 50 moving average building strength with steady volume. Does candlestick analysis tell you anything.

    Thanks

    Erik

  2. Posted by max on February 24, 2006 at 12:42 am

    “Although I’m not a fan of trading breakouts” Is it because breakouts get faded? Also I am very puzzled, i know charting is more of an art rather than a science but I noticed if I put the ATML chart in Linear format the channel you charted doesnt come out right. Am I missing something? Should I be using LOG charts rather than Linear?

  3. Posted by Jerry Allen on February 24, 2006 at 12:45 am

    Tell me again what BB is in the chart?

  4. Posted by Michael on February 24, 2006 at 3:07 pm

    Max, yeah, that’s basically why I don’t usually mess with breakouts. A lot of it depends on the general market conditions though. This article and the one that it links to examines buying breakouts – http://tradermike.net/2003/12/do_you_buy_breakouts_think_again_part_2

    As for Log vs. linear charts. It probably doesn;t matter which you use as long as you’re consistent. Having said that, I think most people use log charts, so I’d rather see what everybody else is seeing.

  5. Posted by Michael on February 24, 2006 at 3:09 pm

    Jerry, the settings for the Bollinger Bands (20,2) are displayed in the upper left corner of the chart.

  6. Posted by Will on February 25, 2006 at 10:21 am

    Mike, I have a chart request for you, IFO. It’s highly short and has a small float. Earnings are around the corner, I think this may head to the upside. Your thoughts?

  7. Posted by Michael on February 27, 2006 at 12:21 am

    WIll, I don’t like to talk about those micro caps