As you may have guessed from my previous ideas I'm bearish the general market (although I did see some potential in a couple of my published ideas). However, with less than impressive economic data coming out both domestic and international I just can't see XRT getting above the current resistance around $83.00. In fact I can see a H&S form and a return to the...
May be a stretch, but potential for H&S forming ... with a 6% drop, followed by a 9% drop ... all in all - banking on 15% drop by the first week of April. MACD histogram and RSI over-reaching ... Donchian channel showing timing for a bounce off to midline (neckline).
At two year low - bottom support ... all indicators pointing to oversold with a potential turn up. Can see 20% return here over next two months. Calling $17.00 by 4/15
Neutral short-term ... but bearish longer term. Momentum has slowed as the price channels have shifted flatter. RSI is skidding up to overbought land. Aroon is losing conviction on its bullish signal ... IMO - FB has been buoyed by the overall market and Yellen's comments. Nothing has changed fundamentally.
H&S forming? No way of knowing right now since the right shoulder hasn't formed yet ... but where do you head from here. Let's wait and see what Yellen says about tapering. Also the price is up against the lower price channel it had formerly ran since Oct 2013.
VIX looks overextended, S&P resting above 150D MA, but MACD and RSI need to show some sign of life. At this point, I'm neutral especially ahead of this week's economic data.
Hot topic - 3D printing - but in the healthcare industry? Now we're talking some cool innovation! But does ONVO present an opportunity now? Hard to say since the last week or two of trading have shown high volatility. But if you flatten this time period and take the last six months into consideration, $8.60 looks reasonable with first support at $7.90. ...
Rising wedge with decline in volume = bearish signal. Could be offset by a MACD crossover (esp if it crosses over the zero line). Aroon is setting up a potential strong uptrend with RSI on the rise.
I'm short based on the pattern/volume and personal belief that the broader market is due for a correction (irrational behavior).
