Nortel has posted a good bounce but trading volume has not been impressive, so expect the price to give back some here. So far, market action is going as can be expected for a stock looking for a base. Research in Motion failed to break overhead resistance and is still trying to recoup. It's in a downtrend with no bottom yet in sight. JDS Uniphase is overextended and ready for a bounce. However, looking closely it's precariously perched - the stock needs to hang in at present levels or else we might see it drop another 20%.
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Dhaliwal is President and chief market strategist of Kirn Dhaliwal Associates.
Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. At time of publication, neither Dhaliwal nor Kirn Dhaliwal Associates held positions in any securities mentioned in this column, although holdings can change at any time. While Dhaliwal cannot provide investment advice or recommendations, he invites your feedback.
