Don't Ignore This Chart!

KLA-Tencor Traces out Two Continuation Patterns


KLA-Tencor (KLAC), a semiconductor equipment and materials designer and manufacturer, is in a long-term uptrend with large and small bullish continuation patterns working. The chart shows 52-week highs in May and October so the long-term trend is clearly up. The green outline highlights a cup-with-handle forming from June to November. On the right side of this pattern, we can see a sharp advance from August to October and then a pullback in November (blue lines). This pullback looks like a falling flag, which is also a bullish continuation pattern. A break above the mid November high would end the flag and signal a continuation of the August-October advance. A break above the prior highs would confirm the cup-with-handle and be even more bullish. Also notice that the indicator window shows MACD turning up near the zero line. 

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--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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