Today's action points to further weakness in the Russell 2000 after the index opened up higher, rallied towards trend line resistance and failed, closing the session below the 10 dma. Prior resistance at $117.3 was also violated by days end and above average volume confirmed the bearish intraday move.
A Diamond Top consists of a combination of a Broadening...
VALE is coming off a nice bounce off of a double bottom and now looks to test heavy resistance including channel resistance. Could send the stock on an upward trajectory to test multi-year highs very quickly. Levels to watch: $14.57, $14.85
LNKD has been trading within a well defined falling channel since September. Stock is now approaching channel support and could provide a good entry point for another bounce to lower highs. Fib retracement around $183 could also provide support for the bounce. However, if channel breaks to the downside there is no significant support until $165.
Netflix is holding trendline support after a much needed correction and now looks to bounce back to previous areas of resistance. Look for $370, $384 as first levels to be tested.
Inverse Head and Shoulders pattern (& small C&H) complete as price holds support around $9.00. Holds 38.2% Fib Line as well. Good volume off the bounce on a weak tape. Looking for continuation of pattern through $10 level with significant resistance around $10.90. Highest price of pattern could be tested at $12.18. Stoch RSI turned hard near end of the week...
After last week's brutal sell-off, the S&P 500 moved quickly to key inflection points. Many indicators and support levels are lining up in the same fashion and could very well provide us with a new trend or continuation of our current trend higher.
1). Linear Regression channel suggests we are sitting at the lower range and has given us a buy signal in the...
The S&P 500 continues to trend higher, supported by a strong rising wedge. However, I do think the bias is to the downside at the moment. Failed breakout of previous resistance around the 1850 area as well as weakening momentum are starting to provide traders with some concern.
A break of the 8 dma could lead to a test of trend line support around the 1825 area....
ATHN is in the process of breaking out of a bull flag after a big move to the upside. 8 dma has been reclaimed after a test of the lower trend line, supported by the cloud as well. I'm looking for a move through swingpoint resistance at $137.87 and promptly back to previous highs at $144.42.
Relative Strength is strong at 89.1
For a short term move I like Jan...
After coming through with a spectacular FDA decision on one of their key drugs, United Therapeutics promptly was lifted 30%. After a well defined consolidation the stock looks like it can be bought again. Reclaimed the 8 dma, rebounded from oversold, and broke its downward channel from previous all-time high of $116.29.This could take off fast into the coming week...
The IWM has been trading within a well defined channel in much of 2013 and with today's test of the lower channel, higher lower, and strong bounce amidst a red day in the rest of the market I think the potential for a bounce to test previous highs is in the cards. However, you must follow what the market gives you, don't try to force counter trend trades.
The S&P 500 is in a classic rising wedge pattern. Historically this pattern results in a breach of the lower trend line followed by a correction. Stoch RSI is diverging as of today and the 8 dma has creeped up within a few points of the price.
Given the resilience of the market I wouldn't get too excited but it certainly cannot go unnoticed.
Potential breakout on the horizon for LVS. Price has been consolidating after a strong breakout. Supported by 8 dma and trend line. Look for a break of the upper descending trend line then through it's 52-week high at $73.49.
Historically, LVS has presented a strong amount of Relative Strength to the market so I expect this trend to continue as long as the...
The Russell 2000 has had a stellar year trading beautifully within it's channel and bollinger bands. No reason to try to trade countertrend until these key principles tell you otherwise. RSI has room to run until overbought can be claimed and price has overtaken a key Fib line which should propel this index through all time highs for a potential test of its upper...
