What the charts of these 7 tech stocks are saying

by Timothy Sykes
Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund

While I believe much of the price action in the most actively traded technology stocks to be rather unpredictable, there are specific price points at which the odds can be in your favor. Because so many traders believe in chart reading, or technical analysis, the price action often becomes a self-fulfilling prophecy (as I've written about here). So, let's take a look at some popular names with traders:

Apple Inc (NASDAQ: AAPL), after a big drop, has already put in solid sideways price action and if it can break $140, there looks to be a rather clear path to $160.

Research In Motion Ltd (NASDAQ: RIMM) has weathered this storm incredibly well, putting in a solid double bottom in the low $80s and more recently, holding the key $100 level. There's still resistance at both $110 and $120, so a big breakout doesn't seem likely anytime soon.

Priceline.com Inc (NASDAQ: PCLN) is still in the midst of a strong yearlong uptrend, a mere $10 off its highs. On any market rebound, I fully expect this stock to break out to new highs.

Amazon.com Inc (NASDAQ: AMZN) pulled off a massively bearish multi-month head and shoulders chart pattern, but since its business is really humming along, I wouldn't be caught short.

Google Inc (NASDAQ: GOOG)'s chart is even more bearish; I'd never try to catch such a well defined falling knife. But its business is healthy until proven otherwise, so I wouldn't short it either.

On the other hand, Chinese search engine company Baidu.com Inc ADR (NASDAQ: BIDU)'s chart offers such a ridiculously perfect bearish head and shoulders pattern, it'd be irresponsible not to look to short the stock -- especially on any bounce -- no matter how good business is.

And last, but certainly least, is the hugely traded, but disappointingly non-volatile Sirius Satellite Radio (NASDAQ: SIRI) and XM Satellite Radio Holdings (NASDAQ: XMSR). Bleh! Sure, their stocks might be bottoming, but what's the upside -- $1 or maybe $2 per share? C'mon, you're better than that -- I'd avoid both stocks!