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Stocks Seeing Upward Trend: Technician

Tuesday, 21 May 2013 | 6:10 PM ET
Stocks Seeing Upward Trend: Technician
Tuesday, 21 May 2013 | 5:29 PM ET
Weekly closing levels in the stock market breaking above a key support level suggests the rally could continue, Tejas Securities Group Chief Technical Analyst Jeff Weiss says.

Weekly closing levels in the stock market broke above a key support level, suggesting that the rally could continue, Tejas Securities Group Chief Technical Analyst Jeff Weiss said Tuesday.

The Dow Jones Industrial Average finished at a new all-time high of 15,387.52, while the S&P 500 also closed at a new all-time high of 1,669.16.

"This is a key resistance area, even more so because now we could see support on the S&P on a weekly closing basis, what, 4 percent away from current levels in a bull market like this," Weiss said. "That's saying something, even if we do have a near-term top here."

On CNBC's "Fast Money," he noted that chart analysis showed that the stock market has moved north of a dashed line back to the March/April period of 2000 of weekly closing levels.

The chart for gold, however, was not as positive.

"I still am not a fan of gold, technically," Weiss said, adding that short-term rallies in gold could still occur.

Asked what would turn around his view of gold, the technicial said, "I think gold is going to have to get over and stay over the low 140s area, at least for several weeks on a daily and on a weekly closing basis."

But Weiss said it was easier to pick winners.

"When you're in a bull market like this that's traveled the distance it has, I much rather look at names that are in uptrends than trying to guess when something that's falling is going to go lower," he said.

Trader disclosure: On May 21, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long NM; Karen Finerman is short SPY; Karen Finerman is short MDY; Karen Finerman is long MDY Puts; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long GDX; Steve Grasso is long GOOG; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MJNA; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long QCOM; Steve Grasso is long S; Dan Nathan is long VIX JUNE 16/20 CALL SPREAD; Dan Nathan is long IBM JUNE 205/195/185 PUT FLY; Dan Nathan is long NTAP JULY 35/40/45 CALL FLY; Dan Nathan is long CAT JULY 85/80 PUT SPREAD; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long WMT; Tim Seymour is long SBUX; Tim Seymour is long MSFT; Tim Seymour is long NOK.

  Price   Change %Change
DJIA
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S&P 500
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GOLD
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