Popular posts from this blog

Upcoming "Death Cross" for Russell 2000 ($IWM)

Image
There was some modest buying today from the open, but volume was light and markets are below trading range support established during the latter part of 2024. It's hard to see where the buyers are going to come from given the chaos of Trump. I should add, I listened to Josh Brown's The Compound podcast and he showed an interesting chart of market returns in April-May in the year following a strong return in markets; in essence, selling to pay capital gains tax. Given the precarious nature of markets, and the possibility for this seasonal factor to play out, it's likely we have a couple more months of downward action before value buyers return. If we look at individual markets, the Russell 2000 ($IWM) is looking like the first to signal a long term shift in favor of bears with an upcoming "Death Cross" between the 50-day MA and 200-day MA - perhaps completing before the end of the week. Technicals are net bearish and the volume trend has collapsed since the st...
Read more

Trade Ideas: BANR, CSC, IMOS, LWSN, TRX, HYB, ETB, LRW

These stocks were taken into the days close, so fills are likely to vary from what is listed here. The software took just under 10 minutes to come up with 8 different stocks.

BANR: Nice end of day hammer to confirm support at $33.20-33.35. Point-n-figure chart holds to a $54 price target as part of a November 3rd double top breakout. Run stops on loss of $33.20.

CSC: Consolidation breakout. Weekly chart shows strong resistance at $58, but heavy buying volume since late October should be able to consume. Projected base target of $74. Point-n-figure target holds to $78.

IMOS: One for watch list given $7.40 resistance could knock the recent bounce off $6.59 lows down a notch or two. An earlier symmetrical triangle on the weekly chart failed to generate a move, as prices passed through its apex (c$7). Short term bulls should look for $9. A break of $5.50 would favor a move down to $3.50.

LWSN: Watch weekly chart action. A weekly close over $8 would be significant and favor a follow on move to around $11.50. Point-n-figure chart holds to a double top breakout from October 17th and a price target of $14.50. Stops go on a loss of $7.25.

TRX: Hugging the 20-day MA as part of a solid uptrend. Insufficient data to draw much of a conclusion as to where it might go. Stops can go on loss of 20-day or 50-day MA.

HYB: Low priced stock and thinly traded (=easy to manipulate and tough to sell). $2 had been strong resistance, but this price now looks to be decent support. Watch for a run to $3.

ETB: Weekly chart shows a perfect 'V'-bottom. Move past $19.50 looks significant. Projected target is in the $23-$24 range, but with little overhead resistance and a relatively thinly traded issue, it could go further.

LRW: New near term highs as the 50-day MA provided the push to drive prices higher. Still key resistance around $25.50. Weekly chart dates this consolidation to last summer. A move to $27 will trigger a quadruple top breakout - although the original point-n-figure target has been met. Stops can go on a close below the 200-day MA. Look for $32.





If you would like to try a full version of the Trade-Ideas software, follow this link for a free 7-day trial.

Popular posts from this blog

Upcoming "Death Cross" for Russell 2000 ($IWM)

Image
There was some modest buying today from the open, but volume was light and markets are below trading range support established during the latter part of 2024. It's hard to see where the buyers are going to come from given the chaos of Trump. I should add, I listened to Josh Brown's The Compound podcast and he showed an interesting chart of market returns in April-May in the year following a strong return in markets; in essence, selling to pay capital gains tax. Given the precarious nature of markets, and the possibility for this seasonal factor to play out, it's likely we have a couple more months of downward action before value buyers return. If we look at individual markets, the Russell 2000 ($IWM) is looking like the first to signal a long term shift in favor of bears with an upcoming "Death Cross" between the 50-day MA and 200-day MA - perhaps completing before the end of the week. Technicals are net bearish and the volume trend has collapsed since the st...
Read more

"Dead Cat" Bounce or Something Better?

Image
It's still a little too early to say, but the bounce is in play and "long" is the place to be. There is a huge amount of overhead resistance and the risk:reward remains tight with moves back to Thursday's lows well within expectations. For the S&P, I would be looking for a rally back to test the 200-day MA, or a fast-falling 20-day MA, whichever is the lowest. Real supply won't kick in until 5,700 is tested, and maybe it will have the juice to get to 5,775 before volume selling makes its presence felt. As the index makes this move I expect to see a decent On-Balance-Volume 'buy' signal, alongside what will be a weak MACD 'buy'; other technicals are likely to remain bearish.
Read more

Sell The News. Nvidia Can't Save Market - Worse To Come?

Image
The pre-market optimism didn't last long, but when markets are coming off an extended high it's hard for buyers to return there, even off the back of 'good news'. The Russell 2000 ($IWM) opened bang on resistance at $237, and then it was all down from there. Volume surged in confirmed distribution, leaving the 200-day MA as the next logical support level.
Read more

Archive

Show more