Wednesday, August 8, 2012

Tues, Aug 7: AA, EA, and NIHD charts

Trading on Tues, August 7 brought interesting price action in shares of Dow component Alcoa (AA) and NASDAQ-100 securities Electronic Arts (EA) and NII Holdings (NIHD).

Alcoa peeked through the resistance side of a half-year price channel. While normally a bullish move, AA's break is more suspect, having occurred on lacklustre volume and in an arguably overbought broad market.

AA. Jan 1, 2012 to present. Hourly candles.

Electronic Arts is performing a similar technical feat -- an upward break through the resistance side of a long-term price channel; in EA's case, the channel has been mostly intact for nine months. The move occurred on relatively high volume, and today's close registered above two local price maxima from July -- both bullish omens.

EA. Nov 17, 2011 to present. Hourly candles.
NII Holdings is another beaten down stock, and emphatically so. Today's post-earnings thrashing of -24.4% may have marked a local (or longer term) minimum, however: volume was extremely heavy, and buyers stepped in at a price channel support level. Moreover, this morning's release of a negative earnings report may have closed the spigot on negative fundamental news for the short term.

NIHD. Feb 1, 2012 to present. Hourly candles.