Trade Ideas: ATK

Large caps finally broke to new 52-week highs, giving the bulls something to cheer after a dogged summer of declines. The joy didn't spread much beyond these indices as the Trade Ideas scan took a disappointly long 10 minutes to generate 8 different picks.

Top of the pile was Alliant Techsystems (ATK). It mananged 47 appearances on the Trade Ideas scan and was well clear of second placed Ryder Systems (R) on 31 appearances.

Alliant Techsystems enjoyed solid gains throughout the day, continuing a strong advance from early 2004 when it traded at lows of $47. The point-n-figure chart target of $105 looks well within its range, part of a September 13th Bullish Triangle Breakout. Tuesday's gains were enough to clear $82 resistance, with larger resistance lurking at $84.74. The projected target from the 5-month base is around $94.

Alliant Techsystems, Inc. engages in the supply of aerospace and defense products to the U.S. government, U.S. allies, and contractors in the United States. It also supplies ammunition to federal and local law enforcement agencies, and commercial markets. The company operates in five segments: Ammunition, ATK Thiokol, Precision Systems, Advanced Propulsion and Space Systems, and ATK Mission Research.



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

S&P "Bull Trap"?

Image
I thought there was sufficient evidence to argue against a "bull trap" in the S&P, but it would appear the market wasn't interested in such thoughts and sellers were quick to reverse the initial push above 4,200.  Adding to the pain were new 'sell' triggers in MACD and On-Balance-Volume, although the former occurred above the 'bullish' zero line, making it a weak signal. Selling volume ranked as distribution as selling momentum picked up speed.  The index is also underperforming relative to the Russell 2000. 
Read more

"Black Candlesticks" are a concern for the S&P and Nasdaq

Image
A bright start for bulls on the back of positive $NVDA earnings wasn't enough to generate a day of meaningful gains.  However, it did help stall the losses of the last couple of days. The Nasdaq was the biggest beneficiary of today's action, but not enough to see an end-of-day finish that cleared last week's swing high, nor delivery of a large white candlestick, despite the morning breakout gap.  Technicals are net bullish and relative performance against the S&P has become consistently stronger since the start of May.  While today's candlestick I would view as typically 'bearish', today's volume ranked as confirmed accumulation (bullish). Overall, I would be looking for higher prices from here. 
Read more

Round 2 for the bearish "black" candlestick in S&P and Nasdaq

Image
The Nasdaq started brightly but ended up closing below its open price, but above yesterday's close. The S&P did something similar, although the intraday range is narrower. These two setups are somewhat complicated by the new 'buy' triggers in On-Balance-Volume for both the Nasdaq and S&P. And the new MACD trigger 'buy' for the S&P. Price action is key, so I would expect the candlestick to trump the technical picture; watch for lower prices tomorrow.
Read more

Archive

Show more