The USDJPY is ranging for the better part of two months. The breakout direction will set the stage for the next few months. An upside breakout, which is potentially close at hand, could see the price rally back up to major resistance near 114. Shorter-term target at 111. If the price can't break the range higher, that sets up a short trade for a ride back toward...
I have added in another regression trend channel going back to the late 2016 high. That longer-term channel shows the potential upside target for a breakout above the medium-term channel if that were to occur. At this particular juncture, the medium and short-term channels are the ones in play, with a potential or bounce or break of the short-term channel on the...
Currency charts (or any chart) can look rather chaotic sometimes. Grabbing a regression trend tool may help. You select the tool and the pick the two points...usually a major high and low. The regression tool then finds the line of best fit through the data. You can also add standard deviations above and below the regression line, resulting in a channel. The...
LULU has been rising in a trend channel since April. The price recently pulled back to channel support and then consolidated there. On Oct 10 the price broke above the consolidation signaling a long entry. The chart shows two trade scenarios. One is entering when the price breaks above the consolidation. This trade has a 6:1 reward to risk based on the estimated...
I don't usually pay much attention to the NYSE Advance/Decline line, but right now I am. It is doing something very rare. It is creating a positive divergence with the S&P 500 and Dow Jones Industrial Average indexes. If you are not sure what this indicator is, or what positive divergence is, please ask. When the NYSE AD line makes a new high the index tends to...
The price action is still bullish based on the breakout from a recent range (blue box). The top area of that range, around 2945, could now act as support. The price is also working its way toward the top of the trend channel with a target of 3100 for mid- to late-October. Also bullish are the 3 major upside days that occurred during that range (based on upside...
Before a major cup and handle forms, it often forms a half cup or rounded bottom that signals a more back toward former highs. It can be an early entry into a really large move if the stock breaks above former highs, or it can simply provide a swing trade which rides the momentum up into the prior high region. The target for the trade provides for an exit just...
The S&P index, as well as small-cap indexes, indicate this is a good time to be long, or be looking for long swing trades in certain sectors. Here are the bullet points of why I am bullish on the S&P 500. -The uptrend is pushing toward new highs. Bullish. Old highs are expected to be broken in an uptrend. It's only when they aren't that there is something to be...
Gibson Energy has formed a triangle just above a former high. A breakout of the recent and small consolidation could indicate a breakout of the larger triangle pattern. This could see the price push higher over the next several weeks to months. The target of a 27.50 is a measured move estimated based on the triangle height and prior price waves. Favorable...
WSP has been here before. Pushing at a long-term resistance zone trying to breakout. So far, the breaks to the upside haven't been accompanied by much of a volume increase. I had to get out of this one last time when the price spiked but volume stayed low and the price collapsed back shortly after. Trade entry and stop loss are hypothetical at this point. Likely...
The Oil and Gas Exploration and Production industry has been hammered. I typically have no interest in weak sectors...until there's a potential bear trap which sets up a major bullish opportunity. That setup could be underway now. A few weeks ago XOP broke below the 2016 low, consolidated, and has since jumped back above the 2016 low. This was on massive volume....
The S&P 500 is heading toward its prior high, and the Canadian TSX index is already making a move through its. The TSX has been a chronic under-performing relative to the S&P500, and despite the fact the Canadian is breaking out first, it is still lagging the S&P 500 overall. The red line shows the TSX index versus a hedged S&P 500 index ETF (ZSP). This...
This stock has been ranging for a long time. It has not closed above $3 before. Currently, it is trading at $3.12, looking to smash through. We will see how it closes. In the more than 2- year range the price has broken to new highs only to quickly fizzle. Be aware of that. Short-term arget near $3.35....although I prefer to use a trailing stop loss given the...
Dexcom has made a significant move above resistance, assuming today's gains hold. It is still early, and volume looks good, so if the price stays up it should be a solid volume breakout. This stock held up well while the market was tanking. Price target is an estimate (always). I am using a trailing stop loss on this one. Disclosure: Long.
This stock has had an amazing run already, and it is setting up again. The stock has formed a rounded bottom continuation pattern. I don't have a trade in this one currently, but since it is a rounded bottom I will wait for the next pullback. This has nothing to do with trying to get a better price. Rather, I want to see the pullback stay above the prior...
Metalla Royalty, trading on the Venture exchange, has started to form a rounded bottom continuation pattern. This could set up a trading opportunity if the price pulls back, consolidates, and then breaks out of the consolidation higher (at least this is how I like trade the pattern). I have put estimated trade levels, providing for a roughly 3:1 reward:risk. At...
Emera has been a strong performer, pushing higher throughout the broader market turmoil. The stock hit my target of $55.96 today so I closed out the position, but the chart is still looking good. It broke out of a range today, on strong volume, indicating there could be another push to the upside. That provides a target of $58.50 to $59. Earnings are due out on...
WSP is moving out of a rounded bottom continuation pattern this morning, andd closing in on the 2018 highs. Swing trade possibility for an 8% to 15% run based on similar prior patterns. That puts an initial target near $81 to $82. Trailing stop could be used in case we get a bigger run like in May/June 2018. Careful: low volume stock. Earnings in early...