Here are two charts that might give you some ideas for this week. The first is Shire Plc Ads (SHPGY).
As you can see, at the beginning of 2008, the stock gapped down precipitously past its support line. The stock tried to break above it and the line is now resistance. I’m not sure if the stock can make another go at resistance, so I feel that this stock will be going down again to retest its January and February lows.
The second chart is for good ol’ International Business Machines (IBM).
IBM was making new highs during the summer of 2007, but since then, you can see a pattern of lower highs and lower lows starting to form. In the next three or four months, I think there’s a good chance this stock will see 104.
