In all honesty, I should call these posts, “Your *___* Trade Ideas For Next Week (Or The Week After)” because it seems that I am usually early on picking out chart formations. That being said, last week’s post did produce a 17% winner ($FB), AN 8% winner ($NTE), and a 15% winner ($TIVO).
This week’s theme has some old, some new, and some soon to be good. Let’s start with the “old.”
Left over from last week’s list, $BAC continues to form an ascending triangle below major resistance.
Nothing has changed from last week and $CMI continues to look good here.
Just like fine wine, time is making $CRM better and better. Now you have a very well-defined risk/reward for the breakout due to the sideways action last week.
If $LEN can fill up the area indicated by the arrow on the chart, we could have a “mini” inverse H&S setup coming.
The best of last week’s charts. $TEX is looking sweet here as it comes out of a large channel.
Now let’s look at the “new.”
Nice little flag below all-time highs on $CYBX defines a great risk/reward set up.
After breaking into all-time highs, $PATK is narrowing its range, meaning a move is coming.
Great little consolidation after breaking a downtrend sets up your risk/reward.
A little sideways action in the box on the chart will set up a good risk/reward on $DYAX
$MCP has looked like death for over a year now, but recent action is suggestive of a “blow-off” bottom. If it could base in the box on the chart for a few days, and then break the resistance, it could create a lot of short covering.
Basing right below gap resistance, $TGE needs to “fill the box” for a few days, then sets up a good risk/reward entry.
Now let’s take a look at some charts that are not quite there yet, but look constructive.
Wha…wha…what? $CSCO? Yeah, I know, crazy. But I like the way it is “knocking” on the downtrend line.
I was just in Vegas and it was packed. If the economy does come back, so will the casinos with a vengeance. $LVS looks good here.
These “types” of companies are looking better on the heels of the homebuilders. I like the narrowing range on $MTW.
Again, another “materials” company narrowing its range in $OC.
$SYMC looks interesting here and even better on a monthly chart.
$TER is seeing higher highs and is basing right below the downtrend line.
The daily chart in $WTR looks good, but the monthly one is insane. Looks like a flag after breaking out of a year and a half long rounded base.
This is a macro move in $X, and it will depend on what chart time frame you believe in. On the daily we have found a double bottom and successively higher highs. However, it you look at the monthly chart, the same stock looks like it is in a bear flag in a huge “H” pattern, which is bearish.
Its ability to move above resistance and the 200ma it may be the determining factor in which time frame wins.
Brilliant stuff like this rains down like..well, rain, on my stream during the week. If you want to get wet, follow me on Twitter and StockTwits. You can also pick up my book Trading - The Best of the Best: Top Trading Tips For Our Times by clicking here.