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With the techMark attempting to bounce back above its 200 day moving average and resume the uptrend, it may be worth checking out the current charting position of leading UK tech stocks. Ok, they may not have the glamour of Google (GOOG) – slapped by EU privacy laws or eBay (EBAY) – passwords hacked. But then again few would argue that the perils of a bubble in the Nasdaq have managed to afflict the techMark 100 just yet.
ARM Holdings (ARM)
While I may not be a paid up member of the “Barmy ARMy, I am a gadget freak and am proud that a British company is a leading player in this area. As far as the technicals are concerned , we have sharp bullish divergence in the 3 day RSI window, with a sustained rebound and unfilled gap to the upside off the floor of a falling October price channel at 840p. The implication is that at least while there is no end of day close back below the gap at 868p the shares could head back to price channel top / 200 day moving average at 964p over the next month.
There are at least three major technical positives here at CSR. The first is the way that the 520p floor of May to date has failed to fill the December gap down to 511p. This suggests the bulls are very much in charge, as does the bullish divergence in the RSI window, along with the double bear trap rebound for the stock since the end of April floor at 568p. The likelihood now is that while there is no end of day close back below the initial May low of 533p the upside for CSR could be towards the March resistance line / 50 day moving average at 648p. The timeframe is as soon as the end of June.
Imagination Technologies (IMG)
The extended base for Imagination Technologies since December is a big plus, with the highlight being the, as yet, unfilled gap to the upside in March. The hope now is that the extended consolidation along the floor of a rising trend channel / 50 day moving average at 194p will be enough to change the trend to a positive one, and lead to a break of the 200 day moving average – now at 227p – on an extended basis. Such an idea is backed both by the bullish divergence line in the RSI window over the past month. The target is therefore the top of a January price channel at 245p, while there is no end of day close back below the 10 day moving average at 206p, as soon as the next 4-6 weeks.