By Orion
I thought the market was going to be as hot as the weather. But as the heat of the day kept going, the market turned cold. I thought alot of the patterns I was looking for broke on the big gap up this morning.
So, I’m still holding C which showed good strength today, and almost got stopped at of FO today. However, I did pick up two stocks in the sell off this afternoon.
Here’s the first one I bought, BBBY. it was on my watch list. Nice down channel heading into the EMA200. All the charts look good for a bounce, but time will tell. I bought inat 41.20. Target sell is around 44.00 for 6.2%. I have a dollar stop set on it.
And for the second one…..
CCL wa another on my watch list. It is bouncing off the EMA200 in a slight ascending triangle. The only problem with this one is the stochastic line. It hasn’t quite gotten to overbought yet, so it may go lower or chop around a bit before heading back north. Time will tell. I bought in at 34.82. I have a dollar stop for protection. Target sell is 37.40 for 8.2%.
Still watching SCVL, DBRN, KIRK, GNW, MT, and SWC. Watch the market, it will be iteresting to see what happens tomorrow.
Until next time, good luck and green trades!
-Orion
By Orion
I thought I would show a sneek peak into one of my picks for this week. The entire list of picks includes: SWC, KIRK, SCVL, MT, GNW, DBRN. SWC and KIRK are my favorites of this list. I think SWC has the highest gain potential. However, I think KIRK has the best risk/reward ratio. So, I am going to breakdown the trade on KIRK.
Here’s the chart:
The price is currently in a downward sloping channel. It has tested the bottom trendline 3 times, and the upper trendline 5 times. The interesting part of this trade is the EMA200 is going to provide support around the next bottom trendline test. The Stochastic line is going down and should be around oversold about the time the price hits the EMA200 and the lower trendline. This should provide a good bounce at least back to the upper trendline. It may or may not breakout. The safe play is to pick the stock up around 17.90 depending upon exactly when it hits support. The target sell is around 20.70, or whenever the price gets back to the upper trendline, EMA20, or EMA50. All three of these resistance levels will be around the same level. The key to this trade will be the stochastic line. The more oversold when it hits the lower trendline, the better the setup. So we would have three buy signals, support at the EMA200, trendline reversal, and oversold status.
The rest of the stocks on the list hae similiar setups, so look for trends, support and resistance. They are not buy on Monday and sell on Friday stocks.
Good luck and green trades!
-Orion
