Yesterday, tech stocks have a good day.
Of which, PALM and RNOW that I have covered previously soar to new heights.
Let’s take a look at the charts.
On the Daily Chart, we can see that PALM has break through the resistance of 9.56 and there is no immediate resistance on moving forward. Kumo direction is in its favour and both the Tenkan sen and Kijun sen continues to rise sharply; a sign that the upward momentum is still strong.
Now, let’s take a look at the Weekly Chart for PALM
On the Weekly Chart, PALM has just break through the kumo. Chikou Span is still inside the very thick kumo (given that PALM sky dive during Oct 2008). We can see that the forward kumo is slowly turning up. But, it is still so far away from the current price level.
To me, this is a suggestion that the current momentum is moving up too fast. What I would like to see is for PALM to slow down its price growth a bit. I think it will slow down once PALM Pre is launched. And that is where the real game begins; we will need to keep an eye on revenues, cashflow, margins and units sold for PALM Pre.
A lot of the momentum after the launch will hinge on its expansion and distribution plans in Europe and Asia.
Ride the trend while it is still there. Keep an eye on the fundamentals.
RNOW has a good run yesterday night. Volume is not as high as I wanted it to be. But the price did move a lot. So, I will be very careful here.
But, from the Daily, I can see that the forward kumo is slowly turning upwards. Tenkan sen is also supporting the price level at this moment.
On the Weekly Chart, it is still going to face resistance moving forward.