BIIB is setting up in what can be viewed as either a 3 weeks tight pattern AND/OR a pennant on both the daily and weekly charts. This pattern is coming right after breaking out of a 4 month long double bottom and is forming on very low volume. This pattern is constructive particularly after this breakout because this breakout came straight off the bottom...
The semi-conductors are getting ready to make another run (check out SMH) and there are lots of names in the space that are looking strong. I like NXPI for several reasons. Let's talk about the base: 1. It's setting up in a giant cup w/ handle that is about a year and a half long. The left side of the base is wide and loose and the right side of the base,...
1. This run initially began on 8/3/2015. See the volume surge on the weekly chart. Institutions that bought then are sitting on a long term capital gain. 2. We are now 71% above the 200dma. A climb to $100 (certainly possible) would put us at 100% above the 200dma which is an offensive sell signal. 3. NVDA broke above a long term uptrend line (15 months). ...
After a long run started in June of almost 100%, AGX has quietly consolidated over the past month and a half around the 10wk line. There are more than a few things I like about this setup so here we go: According to Investors.com AGX is in the #1 rated stock in its industry group and the group rank is 27 out of 197 While AGX has consolidated, its RS line has...
So far dip buyers have shown up at the 200dma and the 40wk line. On the weekly chart, note that 2 layers of support were already taken out at around 2135 and 2110 (former chart highs). The new support levels are round numbers (currently battling for 2100) and the 40wk line. I also think its interesting that the support breaks (best seen on the daily chart...
Over the past 2 months the S&P 500 has formed descending triangle with a support level between 2110 and 2100. As the triangle narrows, the distribution days have piled up once again. Price has lived below the 50dma for the past 20 trading days. The longer we live below the 50dma, the greater the chances we ultimately break to the downside. Caution is warranted...
There are a few things I like about this setup: All moving averages are accelerating The RS line is near highs Price action is tightening as we approach the pivot Clear support along the 50dma so far Strong industry group (top 50 per IBD) and other stocks setting up within the group Earnings is already out of the way I see the pivot as being the recent...
It's always optimal when whatever it is that we're interested in trading to be setting up on multiple time frames. Here, PAM is setting in in a 4wks tight pattern on the weekly chart, and in an ascending triangle on the daily chart. A quick look at the volume bars shows us that PAM is presently being accumulated. This is further confirmed when we dig deeper...
STS is setting up within a square box base. The classic pivot is at 19.83. There are 2 advanced pivots Trendline breakout (see daily chart) 19.34 Support has developed around the former high of 17.77. This support area was test twice already. STS is now finding support along the 21ema. If STS breaks out and fails, look for a retest of either the...
$GRUB is trying to maintain support at the $40 level. This area served as resistance from the end of July through the end of August. After that GRUB broke through and the $40 level has since been an area of support. So far today that level has been successfully tested and is creating a pretty good reward:risk trade to play this as a bounce off support or a...
Here we have a great example of a former resistance level turning into support. The $20.48 level was a clear resistance level that $REN broke through on 9/2. This level was retested on 9/27. With the 21ema right around this area, it increases the chances of a potential bounce. Additionally, on 9/27, $REN dipped below $20.48 but closed above it. A position...
The distribution day count is presently at 11 and today's distribution day is coming on some pretty heavy volume relative to the other distribution days we've had recently. A distribution day count of 11 is extremely high, the highest we've had since the crash in August. On top of that, we're also seeing a distribution cluster which is 4 or more distribution...
After gapping higher on earnings, TSEM has consolidated sideways over the past month and a half. It has approached the 50dma and has so far found support at it. Support can also be seen around 14.77. This level has been successfully tested 3 times so far. See if both 14.77 can hold as well as the 50dma. If it can and TSEM can move back above its short term...
Volume is already tracking higher on the S&P 500 and if the price action remains where it is now around 2150, we'll definitely be looking at a 9th distribution day. To top it off, we will also have a distribution cluster which is 4 or more distribution days over a rolling 10 day period. The indicator below the chart displays the distribution day count over time....
This chart pattern can be seen in a few different ways, all of which are bullish. I see this as a potential inverted head and shoulders, a "VCP" (volatility contraction pattern), and a cup with high handle. For now the cup w/ high handle gives an advanced entry point right at 37.56 This can be played vs the 50dma which it has held since early August. I like...
AMBA is testing the $70 level again today. Since reporting earnings on 9/1 it has spent the month consolidating and finding support along the 50dma. It broke above a descending trend line this morning and is now contending with resistance at 70. Continue to watch support around the 50dma. AMBA has yet to trade below the 50dma since early June.
TWLO broke out today and volume is tracking slightly above average. There are actually multiple breakouts on this chart... 1. Trend line breakout 2. Break above the 5ema 3. Break above resistance at 59.40 4. Break above resistance at 60.69 I like the 56.50 level as near term support. That is the point were the 5ema just crossed back above the 10ema and was...
On this daily chart, we can see that GRUB found resistance at the $40 level after gapping up on earnings. It spent about a month trading below this level and then finally broke above it on 8/31. Since then, $40 has turned into a support zone. Now the 21ema has crossed above $40 and offers an additional layer of support. Presently, GRUB is trading between...