This Chart Pattern Means Profit On KLA-Tencor Corporation
The overall stock markets have recently had a nice bounce since hitting nearly 1900 on the S&P 500. One stock that has not really participated in this move up has been, KLA-Tencor Corporation (NASDAQ:KLAC). KLAC has basically been in a bit of a channel while moving sideways to slightly higher.
As a chart technician who trades stocks for a living, I look at KLA-Tencor Corporation (NASDAQ:KLAC) chart and see a very nice bearish wedge forming, indicating that stock wants to head lower. If this chart does play out the way I suspect, then traders could see KLAC fall down to around $68, and possibly even tag the 200ma. As a trader it is prudent to watch this bearish pattern, if it should confirm then entering the trade on the short side will have a good probability of earning profit. This move would provide a very nice trade that could net an easy 5% in short order. This is the perfect example of why you need to read the charts and learn to do so properly. These patterns emerge every day, and provide the active investor with great money making opportunities. When they are there, do not miss out on them.