AMAT, SMH Poised to Move Higher - Mid-Day Minute for Mon January 8th 2007

Jan 08

AMAT, SMH Poised to Move Higher

by Mike Paulenoff, Mon January 8th, 2007

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With the SMH acting well (and the HHH Internet ETF coming back strongly), two important technology sectors are poised to move considerably higher... Within the SMH, let's take a look at AMAT (14% of the SMH)...

For the better part of 2006 the price action in AMAT produced a huge base-like pattern that is nearing completion, and which could trigger a powerful advance during 2007. Today's up-spike off of the July-Jan uptrend (especially the series of higher lows) is approaching a test of critical intermediate-term resistance at 19-20, which if (when) hurdled should unleash a powerful upside follow-through towards a next target of 22.

Only a failure to do so, followed by a decline that breaks 18, will significantly weaken the developing chart pattern.

Chart

Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!

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