For those of you following the banking index, why don't we take a look? It's
been trending nicely in a channel throughout August. It's approaching resistance
at 900. Watch for continued strength as it tries to move higher. If you want to
play the index, consider trading the leaders in the group along with the trend
of the sector.

Today, I want to take a look at some stocks coming up on key resistance levels.
Watch for both moves over resistance and shorting opportunities.

Today's Watchlist:   ( WIND | Quote | Chart | News | PowerRating),
( VTSS | Quote | Chart | News | PowerRating), ( ADSK | Quote | Chart | News | PowerRating)

The green line on the charts is the 200-day MA and the blue line is the
50-day MA.

Windriver Systems ( WIND | Quote | Chart | News | PowerRating) gapped higher on Friday over its
200-day. While it has been strong all day, it is running into resistance. If it
breaks out on Friday, watch for a continuation move on Monday to lead to a
potential run into the mid-July highs.

Vitesse ( VTSS | Quote | Chart | News | PowerRating) is also running into resistance again on
Friday. This is its fourth attempt to break out from this level. Watch for a
breakout above this key level to possibly result in a move to the resistance
levels from April. It is not often that we see a quadruple top on a stock, so it
may be decision time. As always, look for a volume-backed move above this key
level. If it retraces, look for it to hold the top of the consolidation from
earlier this week.

Autodesk ( ADSK | Quote | Chart | News | PowerRating) is challenging its 50-day MA for the first
time in several months. There is a large area for it to fill from the July
decline. If it is able to close above its 50-day MA, look for it to make a move
back toward the 33 area, which is the high from the wide-range down day. Often,
following such a move, a stock will try to regain what it lost.

 

Until later, 

Dave Baker