Little Followed Tech Plays: LSI Corp and Arrow Electronics

A couple of charts that I am following in the technology space this week are looking good for a potential breakout this week.

Arrow Electronics, Ticker: ARW

Arrow Electronics has been forming an ascending triangle for over a month. The last week has been a very tight range against the 35 top rail. The Moving Average Convergence Divergence (MACD) indicator has been decreasing and starting to turn up. there is a lot of upside if this can break through 35. The first target will be 39, a measured move from early December move up from 31. Next is 40.5 on a measured move from the low of 29.50on the pull back mid November. If it gets beyond that the next target would be 42 on the move from the consolidation area at 28 to 35 extended. Finally through 42 the target would be 47 on a measured move from the bottom at 23 to 35 extended higher.

LSI Corp, Ticker: LSI

LSI is not quite as ripe but also worth watching. The MACD is starting to level and the relative Strength Index is holding, well above 50. It is currently consolidating and if it can move higher above 6.2 then the first resistance is at 6.60. After that it is in clear air and a target on a measured move from the 5.25 low would be 7.05. If it gets through 7.05 the next target would be 7.60.

Add these to your watch list and trade’m well.

(As always you can see details of individual charts and more on my twitter feed and on chartly.)

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