Stock Technical Analysis: KLIC breaks out of bullish flag pattern
Written by Lawrence on September 11, 2009
While the general stock market may appear somewhat overbought after five consecutive days of gains, Kulicke and Soffa Industries (KLIC), a small cap semiconductor stock, is one trading play that should see further upside over the next few days to weeks.
KLIC has broken out of a month-long bullish flag pattern which began after the stock hit a new 52-week high in late July. The bullish flag pattern serves to consolidate the massive move made by the stock in the month of July. On Thursday, the stock surged to a new 52-week high at over $6 on strong volume. Given the high relative strength exhibited by the semiconductors in recent days, KLIC should move strongly upwards in the next couple of days to weeks (that is unless the stock market tanks dramatically!).
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Here’s my take on KPPC: KPPC has had a decent rally from its Feb 2009 lows, but... (Nov 22, 09)
09-15-2009
5:14 am
Lawrence
I would suggest two buy strategies. If the general market is bullish or moving up fast, and if the breakout is on very strong volume you should buy immediately after the stock has broken out of the pattern. In this case, it would be about $6.16.
On the other hand, if the market is relatively sedate and/or the breakout is not extremely strong, you can try buying on a pullback to near the upper resistance line of the pattern. In this case, about 5.60-5.80.
09-11-2009
12:01 pm
bestwishes
For bullish flag pattern, what is the buy point?