ACT breakout but resistance aheadACT has been on a great bull run since breaking out from a pullback/consolidation (and the 2000 high) in early 2012 - as can be seen on the weekly chart.
Unfortunately, the trend hasn't been as smooth on the daily chart throughout 2014 - with multiple breached of the 50ma (which should act as support). Since December 2014, however, we have seen the trend just start to smooth out again. Once price managed to break above the $250 half figure, and the subsequent retest with a double bottom, the 50ma has shown itself as beginning to act as support again.
If price can cleanly break thought $300 this could well offer a long-term buy opportunity. But if price struggles at this level we may want to wait for a comfortable retest and continuation before trading this stock.
50ma
SPR completes bullish flagThe uptrend for SPR is still a little erratic. It has been using the daily 200ma as support rather than the 50ma - so the pullbacks have been deep and prolonged. This has not made it easy to trend trade.
However, since breaking above the 2007 high ($41.72) we have seen a slight change in personality. Price did struggle at this level and retested the area three times during December 2014 and January 2015. The retests were not clean but the 50ma also came into play so we now have a very strong support zone.
Yesterday's bar confirmed a bull flag - which also broke above the recent pivot high, on higher volume, and with a very bullish bar. However, this stock is not ready to trade right now as earnings are due today - so we should wait to see how this plays out. Price is also approaching the $50 half figure.
AWK broken above November highAWK has been trending nicely on the weekly chart since the beginning of 2014. But on the daily chart there were two deep pullbacks (in August and October) which, although just within the bounds of acceptable, would've meant several months of little real profit.
However the overall trend is up - with higher highs and higher lows, so if you are comfortable holding a position for the longer-term this is not a bad stock. Volume is on the low side, but not excessively so.
LNT bullish bar on higher volumeSince breaking above the June pivot high, at the end of October, LNT has continued it's bull run.
The June high was tested in November first with a double bottom chart pattern followed, in December, by a deep flag. However, both of these were within acceptable parameters for a linear trend so a longer-term buy position could be considered.
Despite this I would not recommend LNT for longer-term traders. While it can trend well, at times, it is susceptible to deep pullbacks making it too erratic to comfortably trade.
And with a short trading week and lower volume expected I will be waiting for the first full trading week of 2015 before looking to open any new positions.
LUV gaps up above $40LUV has been a good trending stock I have traded until the October pullback earlier this year.
Breaking above the September high (and confirming a cup and handle chart pattern) offered the first opportunity to re-enter this stock. But with some uncertainty still in the markets I passed this one by.
Since then price has continued its bullish rise with a more recent pullback/flag with plenty of indecision candles. But with Friday's gap up, above the pivot high, above $40, and on higher volume this is a positive buying set-up.
This looks good for either a near-term or long-term trade. I will be entering this trade on the next set-up.
APD potential measured move upAPD has been in an uptrend all year but the deep pullbacks have made it too unpredictable to long-term trade so far.
On the daily chart an inverted head and shoulders chart pattern offered an opportunity to trade a measured move up. Since the break of the pivot high (which also confirmed the H&S pattern) there have been two gaps up on slightly higher volume.
This had the potential set-up for an almost $20 move up but, if you missed the first gap, the risk:reward is rapidly declining.
It offers a very good buy for a short-term trade as the momentum is up (with the gap, volume and bullish bar all in the direction of the trend).
But for longer-term traders you may want to now wait for a break above the $150 half figure before looking to trade this one.
NKE getting close to $100NKE has cropped up quite frequently on our breakout lists lately. It doesn't have a very linear history (pullbacks tend to be too deep for most risk management structures).
But since breaking above the $80 mark it has offered several opportunities to buy. The October pullback was not too deep, remaining comfortably above the daily 50ma. Once price broke $90 NKE became a better proposition and there were several opportunities to long the stock.
Now, however, price is getting a little close to the $100 figure. This can be a psychological resistance so, unless you feel you can get risk-free on your trade before then, this is a future buy with a current bias to stand aside.
ABBV too early to tradeMany traders like to trade IPOs and new stocks as the volatility is considered to offer good opportunity.
But as a technical trader I find it difficult to trade a stock for which there is less than 5 years data. There is a limited history of how the stock reacts to events - which makes them difficult to analyse.
In the case of ABBV a pattern is now beginning to emerge. The trend is clearly up with deep and frequent pullbacks. For a longer-term trader positions would spend more time in negative equity than positive so we would by-pass this one.
However, this stock may well settle down into a more simple pattern to trade (i.e. a more linear trend) at a later date. For now, however, it is not possible for me to make a good, informed decision. Not every breakout is an opportunity.
CVA bullish flag in an uptrendCVA has just printed a bullish flag in an uptrend (on Thursday's bar). This gives a good indication that price will continue to rise (no chart pattern has 100% accuracy).
However, there is not so much room for this stock to uptrend before hitting resistance at around $30 (the 2008 high was $30.37). Some breakout traders prefer to only buy those stocks which are printing new all-time highs - and there are plenty around to choose from. But there is a potential for several dollars in this one, so should not be dismissed out of hand (particularly by shorter-term traders).
The pullbacks on this stock (since breaking above the 200dma) have been a little deep on occasion but nothing to cause concern. This suggests that a good trend is in play and may be worth further consideration on the next set-up.
LM on a bull wave upLM reached a high of $140 in 2006 before plummeting to almost $10. Since then we have seen price bottom out (forming a cup and handle on the weekly chart) and begin a bullish wave up. During August and October a double bottom formation occurred - confirmed in November with a break of the neckline.
The weekly double bottom presented itself on the daily chart as a small consolidation - the 50ma was flat and price hovered around the $50 half-figure. This consolidation lasted over four months, but was not too deep so the breakout at the beginning of November was an early chance to buy into this stock.
The more cautious would want to wait for a small pullback. This occurred with the bullish flag confirmed yesterday (13th November). There is no resistance ahead for some time ahead ($80 is the next major pivot point). Overall, a strong buy candidate for the watchlist.
JLL bullish after breaking 2007 highNow JLL has broken and retested the 2007 high ($124.99) there is room for price to move further to the upside.
There was a cluster of support at around $125 but it dipped just below this during the October pullback (which affected most stocks). It found support at the 50ma on the weekly chart but popped below the 200ma on the daily chart.
Since then price has cleared the more recent August high and yesterday a bullish flag was confirmed. In the last year this stock has trended well - a few of the pullbacks have been a little on the deep side but, other than October's, they would not have presented an issue to the longer-term trend trader.
UNP breaks out after deep pullbackUNP has been a profitable trending stock but, as with many other positions, the October pullback was too deep to justify remaining in the trade.
On the weekly chart the trend has remained pretty much intact since January 2012, even with the recent pullback. Price did not breach the 50ma, and only spiked below the 100 figure.
But on the daily chart the pullbacks have become progressively deeper. However it is conceivable that UNP will return to its former linear trend. Yesterday's breakout bar confirmed a small doji-based flag on slightly higher volume. If it weren't for NFP today a buy opportunity could've been a possibility.
But for now I will wait for Monday (to avoid possible near term volatility due to NFP) and reassess then.
SRE continues uptrendSRE has been a good long opportunity since breaking above the $72 zone. On the weekly chart the 50ma has acted as support throughout the trend.
While the pullbacks on the weekly have all been within the normal parameters they have been a little more cumbersome to trade on the daily chart. The last two deep pullbacks both dropped to test the 200ma and figure 100 before bouncing back up. Now that area is cleared and, after earnings were released on 4th November, the bullish move continues.
A buy opportunity for SRE if you are happy to accept possible pullbacks.
HEWLETT-PACKARD 2014 RALLY TO CONTINUE - SUPPORTED BY 50MAThe 50MA has provided an almost unbreakable support for HPQ since the beginning of the year. Although the stock has consolidated the past week or so I see the rally to continue in light of earnings on the 20th towards the $37 price.
