If you look back at last week’s post you will see that there were a number of winners, which is not hard to do when the market breaks out like it did. The big dogs from the post were $AIR up 14%, $CPE up 8%, $MS up 13.8%, and $SYMC up 13%.
Now we are in a strange area where a lot of stocks that broke out and are too extended to chase. However, there are still some some trade setups for your consideration this week. Unless otherwise noted they are good-looking setups on the daily chart for taking day trades,( i.e. ”Set up for home runs, but hit singles and doubles”) and then swing traded at your discretion.
Finally breaking out of this three month long range suggests that $AA has found a bottom. If it can go sideways for 2-3 days, that would set up a sweet risk/reward trade.
A little sloppy, and not ready yet, but I like the consolidation between resistance and the 200ma. Keep an eye on $AMAT.
I have no idea what this company does, but price keeps stair-stepping higher. This flag-type consolidation in $CBM looks like it is setting up to break soon.
Last week I noted that $CHK was “not quite there yet,” but this week it is. Would like to see one tight day below the resistance for a great risk/reward setup, but may just break out here.
I hate biotechs and don’t trade them, but for those that do, $GNOM is setting up after recapturing it’s 200ma. A couple more sideways days would be ideal.
I’ve been watching $MITK for a while as it bases between support and gap resistance. The longer the base the more powerful the break could be.
Brian Shannon (Alphatrends) recently did a piece about $MSFT having breakout potential. Even though technically the breakout failed Friday, if this former “four horsemen” of tech is really breaking out, that move should last for a long time.
It’s not usually good to short when the market is breaking out, but the weakness in $SYNC while the market is breaking out may be the exact reason to short a break of this flag.
$USO is giving you a well defined risk/reward area here just below the 200ma.
A sloppy pattern, but it has technically completed a “W” pattern which can lead to higher prices. 2-3 days sidesways, with an NR7 bar would be ideal setup.