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Stage4

UPS- Continuation of stage 4 decline?Dear all, In a weak market, I look for stage 4 breakouts and continuation pattersn (based on the famous Stan Weinstein). I try to look for bear flags that fall together with downsloping 50 day sma (or at least very close, a few %s). This is the case for UPS. After a last few good months for UPS, a possible bear flag is forming that coincides with a support/resisistance level and a downsloping 50d sma. The AVWAP of the latest High and Low are also above the current price, giving extra pressure for a downturn (since the sellers are in control). Things to consider for a stage 4: - declining 30 week Ma :check - declining 10 week Ma :check - 10 w underneath 30w :check - Loss of trendline :TBA I will open some puts (3 months out) when the price breaks $173.3 or the striped support line. Possible stop loss could be the 50d SMA or the AVWAP of the low.
NYSE:UPSShort
by UnknownUnicorn7024067
CCJ - possible stage 4 incomingDear all, Another name that is probably setting up for stage 4 in the energy sector, this time a uranium name: $CCJ. After consolidating a stage 3 for almost a year and forming, kind of a sloping head and shoulder pattern and loss of the longer term trendline this week, it is time for a stage 4 decline. Things to consider for a stage 4: - declining 30 week Ma :check - declining 10 week Ma :check - 10 w underneath 30w :check - Loss of trendline :check Extra reasons for stage 4 decline: - Big volume on down days :check - Gap downs - Resistance of AVWAP of important dates (big volume days 1 feb 21, last high and low) The price is now trying to reach back the broken trendline, but is unable to break through. The trendline is now also confluencing with an AVWAP. Next week the 10w sma is at the same spot and also the downtrending trendline from last high. This will be a very tough spot to break, so a high probability the price will move downwards. I entered last week with a few puts, three months out. Stop loss i would suggest is the break of before mentioned resistances ca. 23-23,5 Good luck and have a good year!
NYSE:CCJShort
by UnknownUnicorn7024067
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