Ramping up
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