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.