JOY gapped below $50 but earnings dueJOY caught my eye because of the inverted cup and handle formation - which Friday's gap down confirmed.
Initially I thought this could be a good near-term shorting opportunity because price had broken below $50 and recent support - and the measured move could've made this worth considering for a quick profit.
However, on closer inspection there are a series of support levels just a few dollars away and, in addition to this, earnings are due on 17th December - just two days away. This would probably not give me enough time to profit from even a short-term trade so I have to stand aside.
Although I suspect this is likely to go lower, that's not how I trade. I shall wait and see what happens after the earnings announcement.
Gapdown
DRQ gaps down on higher volumeIf you like shorting stock in an overall bull market DRQ offers a good opportunity. It gapped down yesterday on higher volume giving a good signal to take a near-term sell.
This stock is already in a solid downtrend, trading below the 200dma. It recently formed a double top in a downtrend, broke recent support and retested it - and now it has gapped down on higher volume.
The 2010 pivot high and $70 zone will act as support to price, however, but this is around 400 points away right now which is plenty for a near-term trade.
NBL bearish gap downThere are a lot of energy stocks, which have gapped down, on our list today. Many provide near-term sell opportunities but I felt the best of them was NBL.
Looking at pivot highs and lows on the weekly chart, NBL seemed to have plenty of room to manoeuvre (about 800 points before the next major support). The daily gap down (on higher volume) broke below longer-term pivot highs (and the recent pivot low) as well as $50. The breakout bar was bearish and price is trading below the 200ma (weekly and daily).
While I don't trade fundamentals I do feel that it is the fall in oil prices which may well have affected so many energy stocks. So trading oil may be a more straightforward alternative to shorting correlated stocks.
RIG gaps down on higher volumeRIG has been bearish since the 2008 high, so with the last bar gapping down on higher volume a near-term sell opportunity looks like a good play.
Price had been going mostly sideways, since the end of 2012, offering a strong support at around $38. When this was broken and retested (turning support into resistance) in August/September 2014 a new bear trend began to develop. This would've been very early to short this stock so a break of the more recent pivot low of $27.91 offered a firmer opportunity, for longer-term trend traders.
Trading the last bars gap down (on higher volume) offers a near-term sell opportunity - with the next level of support at around $18 -$19. However, I am not looking to enter any trades today due to the US holiday yesterday.
SDRL gaps down on higher volumeThere are three reasons why I am not looking to take any new trades today. Yesterday was a bank holiday in the US, today is apparently a half trading day, and finally it's the last trading day of the month. To me this means volatility may be affected and I'd rather stand aside than get whipsawed.
However, if I were to take a near-term short opportunity the set up on SDRL looks very good. Price as been trading below the 200dma for a coupe of months and the last trading bar gapped down below recent support and also support from the low of 2010. There is some way to go before the next support level. Volume was up on the gap - adding to the likelihood of a continued move down.
DNR gaps downFor a long-term trade DRN is not a great shorting stock. It closed yesterday at $10.01 so there is not to much further for it to fall. But with the gap down on higher volume a quick short could be on the cards.
Price has just managed to close below the 2001 pivot low of $10.20, but remains marginally above the $10 round number and I would've liked to have seen a more bearish bar.
If there is further weakness today this could well trigger a position. The next support level is $5.59 (2008 pivot low) so there is room for a downward move, at least in the near-term.
DDD showing weaknessIf you're looking for a sell opportunity then DDD looks promising. The decline has been steep since the high (which didn't quite touch $100) at the end of 2013.
On the weekly chart price looks almost certain to end the week below the 200ma. If this does occur then a shorting opportunity may present itself (although we should wait one more trading day just to be certain).
On the daily chart there was a large reversal candle at the 200dma (1st July) since which price has continued it's bearish move. A further gap down (on higher volume on 22nd October) gave yet more weight to a continued decline.
There could be resistance at the $28-$30 zone but, if you like to short in an overall bull market, DDD should be added to your watchlist.
MDRX gaps down on earningsMDRX has been in a messy downtrend for a few weeks so Friday's gap down, on the earnings announcements, did not come as a surprise.
As volume was also up there is a good probability that the bear move will continue. However, because the trend is not very neat and because there is support at $8.84 this is a near-term shorting opportunity only. That still gives a potential 216 point move, provide the gap doesn't get filled.
KORS major support break downKors is high-growing company with EPS for the past 5 years 130%. So, if it misses or meets with expactations on its report that will be soon on August 5th, it may frustrate investors and trigger further selling.
Technically, it pierced psychological mark $100, but failed to close above, from hwere it sold off. It found support at $86 that was recently broken with powerful gap down. Now, it absorbs this big move down and consolidates very tight preparing for break out. I am going to initiate small position here with add when it will go through $81.50. Stop above $84 makes sence, then we have resistance (previous support) at $85.66 where 200 EMA is situated.
$65 should be big level of support, because after broke up one year ago it caught nice follow through to its highs.
PM tight pattern gives calculated entry After V-shape move off the bottom on February, stock formed double top at $91.62 and sold off from there with two gap downs (means strength of sellers). I will us gap pivot point as stop/ Until it stays below $87, I am bearish. Price is below key moving averages. You can manage this trade in different ways I use active trade management. Enter with tier1 in this tight pattern, add tier2 and tier3 if it breaks down and close below $83.83. My road map is move to $79.
$PVCT Gap Fill TradeFollowing 2 green days and the overall market strength; I still see room for continuation. I will be watching for a gap up or strong open to break the $ 1.16 - $ 1.20 area. If it holds above $ 1.20 after a test for support on strong volume; I think we see a push for a gap fill to the $ 2.00 area.
UAL is curling down This airline company found strong resistance zone at $48-$49. Bounced off it very agressively with gap down zone from $44 to $45 which is powerful sign that sellers keep control on price.
From fundamental point of view there is tension in Iraq - one of the biggest supplier of Oil in the worls. Break in supplies leads to higher prices and then higher costs for transport companies.
It pulled back to moving averages zone and now is curling down. You can put feeler here and on break down and close below $41.60 low.
Potential Target could be reversal point from April 28 at $38.
EBAY heading into major supportEBAY is on my short list. As it trades below all key moving averages including the most important one 200 EMA, means that bears in control despite storng market and technology sector as well. Earlier it failed to hold above $58 (breakout point) and definitely it is not a good sign for buyers.
Ebay gapped down on earnings on 30th of April with pivot resistance at $52.75. bounced from major support at $50 which also acts like psychological level, but this bounce was really weak.
There are entries inside that range but for more confidence we need break down of $50 then I expect to see some follow through .
Next reasonable support is at $46 which could be my first target.
