FOE major supportFerro Corp is sitting on its major support showing us relative strength, while SPY broke down its intermidiate trend with big, ignited candle. I will be watching for stocks that show us resilience during this corrective phase, as we remain in macro trend. If indexes will find its footing, then we can see an upward move in this stock with resonable risk/reward and high probability of winning.
Trade management is the key. Tier 1 here, close to support. Add when market conditions will be favorable and stock will go through $12.80ish with potential to $13.90ish resistance, then we have $15.
Strength
ACN trend bounceAccenture looks ready to move higher, as it bounced off of trend line. Now, it is hovering around all key moving averages. Combine it withh strong market (yesterday it bounced again from active trend line) and that is how you get A+ trades. I am looking for potential move through $81 for additional gains. My mid-term target is $84.50. With stop below previous swing low at $79 - this trade looks attractive from Risk/Reward point of view.
Check my previous idea in this srock in the link below
NOW get long now, part 2This cloud-service company looks ready for another leg higher.
Stock came from $26.33 to $71.80 for one year. Then agressively sold off from high. Pretty deep pullback to $46 which we can measure with fib levels - 61,8% is support - the last chance for bulls to prove that it is not reversal.
I was bullish on it since Reversal on 15 of May (check my thoughts in the link below). Since then, it had nice move through resistance $55-$56 right to $64.61 from where it had 4 days of selloff. It found bottom and formed support on previous resistance around $55.00-$55.60 (previous resistance). I like the way how buyers regrouped and with yesterdays candle it broke up consolidation with bullish close near intraday high.
So, buyers should hold above $58 to keep active traders attention, then we can see some follow through to the top of this wedge. It has some room to $64 and with well-defined risk below $55.60, it makes this trade attractive from Risk/Reward point of view with high probability of winning, as this market stays bullish (active, intermidiate and macro trends are still intact).
We have earnings on July 30 after market close.
SCTY looks ready for move higherSolarCity poked its head off consolidation and looks ready to amke move higher. Overall, stock gained 400% since it became public.
This has largely been driven by its attractive business model, which has allowed it to grow its customer base at a feverish pace. Unlike other installers who require customers to make upfront cash payments, SolarCity foots all the installation costs upfront and then leases the solar system back to the home or business on whose roof it sits.
After it found top at $88, then it was sold off very hardly (lost almost half of its value) and found at $46 -$48. After it broke up descending chanel, it caught momentum buying. Controlled pullback and resuming of buying - that is what we have. Combine it with strong overall markets and that is how you get high probability tardes. Holding above $66.50 could keep its momentum intact for potential move to $74-$76 (previoous high and trend line). Manage this position according to your timeframe and risk management rules. For swing traders, if it will go below $62.50, then it makes this idea invalid. For more active traders, use short term moving averages to judge price action.
Amazon changing sentiment in front of earningsAmazon was in down trend most part of the time this year but caught some buying after it broke up from $320-$340 consolidation with strong two days continuation to $359.32. Now, it holds nicely near highs. Buyers probably should not gave back more than 1/4-1/3 of this recent move if they want to see quick continuation. I expect to see bull flag and continuation through recent highs some time soon. maybe earnings release on Thursday 24 after market close could be such type of catalyst.
USD/RUB A+ set-up when fundamentals and technicals join togetherthe U.S. and the European Union announced a fresh round of sanctions against Russia on Wednesday 16 of July following the annexation of Crimea back in March and ongoing tensions in the east of Ukraine. The U.S. package was the largest round of penalties so far, with Russia's oil producer Rosneft hit as well as other energy, financial and defense firms.
Technically USD/RUB came into play after new portion of sanctions were announced against Russia. In February 2014, currency pair broke up major resistance level at 33.50 and had nice follow through to 37.00. During this period of mark-up it was nicely controlled and followed by 8 and 21 EMAs. In April price entered into consolidation, after it dropped its 8 and 21 first time since break up. Break down of this range lead to move lower to 200 EMA. Bear chanel was created with series of lower highs and lower lows. But after price bounced off from support which acted like resistance earlier, then broke up this chanel, regained all key moving averages and had a nice 2nd day follow through. Lets see if it can build some construction above 34.43-34.59 support zone - break out point and moving averages. It will be healthy to see some digestion after six days move up in a row. And then it may continue higher. Next reasonable level of resistance is 35.35 - break down point of April's consolidation.
Yen Strength 7/16/14The Yen has been building in strength through the summer. Here price has entered in to a small range(within a larger downtrend), with price being rejected at the .618 fib retracement and the resistance line, which created a confluence of resistance. Recent candle wicks show rejection at the 101.800 level, so I suspect this retracement may becoming to an end.
entry point should be approx. 101.800 area with a stop set in the 102.000 area. This stop placement was chosen since it has been a place of support and resistance in the past, and congestion seems to form there. Take profit would be fluid, evaluate PA and ride the trend down. (monitor the news as BOJ is known to intervene as their currency strengthens)
COST break up of consolidationCostco caught up some buying momentum after it broke up its consolidation resistance at $116.60 and had 2 days of follow through. Price found top at $126 and was sold off to $110 which acts like major support for this stock.
It was out of play for couple of months but for now if it will hold above breakout point it will keep active traders attention.
Higher lows and higher highs tell us that buyers are in control. Next important resistance is at $120 which could be our target.
FTSE100 sitting on major resistance FTSE reached major level of resistance after Reversal Candle, then it regained moving averages and borke bear channel. That attracted many active buyers and we had nice follow through into major resistance 6875-94 that is in tact since May 2013. On Friday, it closed with doji, holding near top. At this point I think we need some kinf of rest or sideways action (upper-level base or flag) before it will break up to new highs. I am watching for tactical short and will use my 8/21 EMAs to measure strength of this recent move. The higher it will hold the higher is probability that it will continue going up.
CRM break up of consolidationThis cloud company was in descending channel in the first half of the year and erased most part of gains from 2013 but then regrouped and regained all key moving averages. With big, ignited, green candle it borke this short period of indecision and have built nice upper level base. Break above $58.63 could trigger an entry with stop below support of consolidation at $56.63. Target could be $63 where previous up trend was broken.
QQQ showing relative strengthIt started 2014 year as laggard and was trending lower in bear channel. But then it bounced off of 200 EMA with RedDogReversal, regrouped and have built higher highs. Finally, sentiment changed when it resolved this indecision area with break up of resistance at $88.60 with nice 4 days follow through. Traders should adapt and make adjustments if they want to survive and be profitable. Then, it built nice upper-level base and borke up again. After 3 weeks of consolidation it broke up to new highs.
$MSFT put another record high, 8/21/50 EMA control price. Stocks like $TSLA, $INTC, $FB, $NFLX and even $TWTR looks well and hold above 8 EMA, but no calculated setups here.
$AAPL broke up its descending channle as this stock was not interesting for traders last 2 weeks. Lets see if it can build above $91.35. High at $95.05 could be intermidiate target.
My previous ideas on some of those stocks and evolution of thoughts:
MSFT
MSFT
INTC
INTC
Facebook
GME break up of downtrend Stock came from $16 to almost $58 in year and a half but was sold off on bad earnings results almost 2/3 of it is initial move up. In such a strong tape I think it looks ready for move higher, as it found support at $33 and have built higher highs with consolidation support at $35-$36. It broke downtrend line to the upside with strong, green candle and building nice and tight base above key moving averages wich gives us calculated trade if it triggers above $40.60.
If you are active trader you can use tight stop below base support $39.44. I prefer to give it more room and will put my stop below $38 - break out point and 21/50 EMAs.
Gold acceleration on tension in Iraq and Fed decisionGold seems to be a haven asset for investors in terms of tensed siituations all around the world. Iraq is a key oil market player and there also is a difficult situation. Rebel activity in the North of the country has forced the U.S. to send to Iraq 300 military advisers. From the point of view of technical analysis there was a lot of tips and trading signals. After the 2 months support consolidation of $1280 break up, Gold fell down and found its low of $1240. We had lots of levels to push off ($1240, $1250, $1260, $1270), and also the break ups of resistance. There also were some trading opportunities when the yellow metal reached its potential resistance rate of $1280-$1285 and then it fell to $1258. Buyers have restored a support rate of $1264 and also a 8/21 EMA. Struck $1272 and resistance in control of the movement of the moving averages reached the previous high penetration which attracted a lot of buyers. The price fastened and set a high of $1321 in an inflamed move. I’ll use Fibonacci levels to measure the buyers’ strength. The higher they hold up the price, the more chancese for an upward movement resumption there would be. The first potential support is around 38% 1306.59, and $1302 after that.
Check my previous ideas on Gold in the link below
NPSP wedging near highsNPSP bounced off from $22 support that is in tact since November 2013. After consolidation it broke up $28 consolidation resistance with two ignited, green candles. Now it is wedging near highs and preparing to new move higher.
It is not ready yet, but will be on my long list with trigger above $34.70 and stop below $31.50 makes this trade acceptable from Risk/reward point of view, as my first target are 2014 highs at $39.68.
Solar sector catches some upside momentumSince the beginning of March this solar ETF entered into bear channel and was laggard sector vs broad market as investors were buying major cap, high dividend stocks.
Nevertheless, it is just 38% pullback from big move from $15.00. Now, it builts higher highs and higher lows - strength of buyers. Yesterday, it closed near highs and broke previous dwing high at $42. So, it could be our point of potential support, then we have 8/21 EMA $40.60-$41.20 respectively. Previous low at $39.09. Target #1 $44.30ish.
Some stocks from this sector that are showing strength: $FLSR, $SCTY, $SPWR, $TSL.
ITNC gap up on upside guidanceIntel set new 5 years after it announced its sales would be better than it had anticipated earlier in the year. Intel’s news is almost certainly good for Microsoft (NASDAQ: MSFT) and Hewlett-Packard (NYSE: HPQ) since Intel is the leading maker of chips for PC’s.
The PC market has been so mature that most analysts assumed that Intel’s future would be relatively weak. As PC sales have begun to fall worldwide, tablet and smartphone sales have risen sharply.
Any improvement in PC sales will help Microsoft, which is the major provider of PC operating systems, and Hewlett Packard, the leader in PC sales.
Technical Analysis:
Now, we have gap low at $29.56 which should act like support and high at $30.06.
I think it needs couple of days of rest, investors and traders need time to absorb this big movement
Check my previous idea in the link below:
Gold dip accumulation After 2-months range was resolved to downside, Gold was sold off aggressively from $1,300 to $1,240 where it found support. With wide, ignited, green candle 3-days consolidations resistance at $1,248 was broken and now gold is showing some commitment and building nice upper-level base in front of local resistance at $1,257.5. Break above could attract more dip buyers with next target at $1,268 where 21 EMA lies on daily chart.
Also, we have intermidiate support at $1,252 whick was pierced for a while on noise (news) but buyers regained control really quickly.
VIPS approached to highsVipshop is very strong as it came from $30s with igniting move to $180. Then entered into controlled pullback and found support aorund $130. During recent move stock bounced from support, regained moving averages, broke intermidiate resistance at $160 which now acts like support. Yesterday it closed in front of resistance at $180. Maybe if it will go through this resistance it may caught some follow through.
MSFT breakout of wedgeNice, strong breakout in Microsoft today. Intraday entry was at $40.50. You can trim&trail some in front of resistance if you manage this on daily basis and for investors nothing to worry about.
New pivot resistance at $40.97, above that could trigger another entry/add. Next resistance at $41.30 then we have highs at $41.60.
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Acting well after it bounced off of support at $39. (Check my idea in the link below)
GWPH wedge near highsLast summer this pharmaceutical company was a single-digit stock but it has been on tear since. The stock did pull in sharply after topping out in the upper $80s in early March, but it has responded well and looks like it could be setting up for another leg higher.
Trading Plan:
Stop: below $68
Entry: break of wedge
Target: $78 then $86
LNKD showed relative strengthYeasterday US markets closed in red with QQQ -0.8%, SPY -0.9% and DIA -0.94%.
But this social network reversed from lows and closed near highs.
I think we are close to resolution of this wide range with upside bias because of that strength. Now we have higher low @ $143.45 and important intermidiate support @ $145 that was retested intraday.
Another action point is previous high of the day @ $149.50. If it will go above and hold we can see $153.34
NOW get long nowStock came from $26.33 to $71.80 for one year. Then agressively sold off from high. Pretty deep pullback which we can measure with fib levels - 61,8% is support - the last chance for bulls to prove that it is not reversal.
Yeasterday it went through lows but managed to get back and closed on highs. Showed us relative strength vs broad market (SPY, DIA and QQQ showed some breakout failure signals and closed around 1% down)
Despite it is below all key moving averages I have thoughts that money can rotate into underperforming stocks as many sectors are extended and markets are nervous so it is difficult to buy them.
Trade Plan:
Enter: now @ $47.82 or wait for additional confirmation brak up through consolidation resistance @ $49
Stop: below low of the day where sellers failed to hold below $46 then we have support from $44 to $45
Target: $53 swing high where 200 MA lies then we have $55
QCOR relative strengthWith markets down around 1% this biotech company showing us relative strength.
It is trading on highs above all key moving averages in very tight consolidation above previous swing high @ $85.50.
Entry here and expect break up of $88.50. If market will show us some strength, this stock could be a good candidate for long.
