All Entries Tagged With: "Chart Reviews"
Every Day’s a Monday in Trading
May 17, 2010 at 9:06 pm
We all love a fresh start, am I right? Sometimes we just need that new beginning. Like a Monday morning diet when we’ve pigged out all weekend.
Or the opening bell after a tough stretch of trading. Both the Monday morning (for the dieter) and the opening bell (for the struggling trader) bring hope for change, so they’re quite similar. The big difference is that as a trader, we don’t have excuses to wait until next week to start taking control.
In my own personal trading, I’ve learned to make some adjustments when conditions call for it, because that’s what’s needed for different results than the frustration that only trading a single style can bring. Building your skill set takes time, but you can improve every day and experience the fresh start of a Monday whenever you want it.
This clip was also posted over on the Trading Videos site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.
Thanks for stopping by and I’ll see you here soon with more.
Until then… Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
ANF Looking Vulnerable
January 19, 2010 at 7:25 am
Anytime I see a stock crack support and fail to reclaim it, I pay attention. Especially when it makes no effort to rebound and merely consolidates after that key breakdown.
ANF is doing this right now. Just over a week ago, it undercut an ascending channel pattern on heavy volume, offering a decisive change of direction. Last week, not only did it fail to bounce, but it consolidated in a bear pennant pattern, indicating there may be more selling yet to come.
I’m keeping a close eye on this one, as a move down at $32 out of the short-term pennant would confirm this pattern, possibly leaving the $30 area as the next stop (given that it’s a former key level in the stock).
Here’s a closer look at the chart:
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Is NFLX Leading Again?
January 12, 2010 at 7:46 am
With new highs being hit almost daily in the market, there has been an abundance of long-sided trade candidates. However, weak stocks are still in our midst, and it can serve us well to watch for those outliers – whether as individual profit vehicles or simply as hedges.
NFLX is one such stock. Not only did this one prove to be a market leader when it began trending higher a few months prior to the market turning the corner (NFLX in late 2008 vs. the market in March 2009), but it’s now trending lower while the market continues to climb.
A pair of lower highs has been established since November, and currently the stock is struggling to reclaim recently-broken support. The bounce of the past few days is now starting to create a rising wedge pattern which, if confirmed with a move back under the $52.50 area, could bring another breakdown for the stock. If it does, this one is on my radar for a play.
Here’s a closer look for you:
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
I See You PCU
January 11, 2010 at 7:26 am
Strength in this market has been relentless, and that means many individual names are riding the wave. It can be difficult to work through robust watch lists in search of great plays, but often times it boils down to identifying the most valid levels, knowing if they’re violated that opportunity will emerge.
Last week, PCU “got on its horse” for several days and made a nice move right to upper resistance – a well-defined level it has flirted with several times in recent months. It’s now threatening a breakout, but will need to punch through the $36.50 level in order to pull it off. If it does, this one is on my radar for a play.
Here’s a closer look for you:
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Nothing Wrong WIT This One
January 5, 2010 at 7:55 am
Solid technical setups often times will have more than one positive thing going for them. It may simply be having the market’s wind at its back, or it may be more like the stock I’m going to show you today. WIT has made a monster run since the March lows of 2009, tacking on about 350% since then. And while that’s a really impressive advance, the fact is that the stock is still trending higher – and may be poised for more.
Not only does this one have the long-term uptrend and higher lows/highs in place after that move, but even just over the past few weeks WIT has exhibited some great qualities. It popped big in mid-December on a surge in volume to make new highs, and since then it has put in some needed rest. We also see on the chart below a pair of white arrows highlighting short-term higher lows as the stock sits just shy of resistance.
On Monday, WIT turned higher on a pickup in volume, indicating we may soon see those highs get challenged at the $23 level. If so, this is one I’m definitely interested in, so it’s on my radar for a play.
Here’s a closer look for you:
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
LUV Still Adored
January 4, 2010 at 6:48 am
There’s a common desire among traders to “buy the dip” when given a chance, and I’m here today to show you one such opportunity. The idea of picking up stocks on even a minor discount within the context of a proven trend is indeed a good one – so let’s take a look at one chart of interest.
LUV, like many other airline stocks, has enjoyed quite a run over the past several weeks. The day to day action has been consistent, and although it hasn’t seen many huge individual days, the net result is an impressive 39% run over just the past 2 months. It may not be done either.
Even in the wake of the Christmas Day “underwear bomber” attempt (does that title ‘crack’ up anyone else the way it does me?), the stock saw only a very shallow decline before posting another gain to finish out the year.
The result of the dip has merely been some quiet consolidation on light volume, which has also created a small descending trend line just above current prices. A push north of that trend line at $11.60 could mean yet another takeoff for the stock (pardon the pun), so it’s on my radar for a play.
Here’s a closer look for you:
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Pattern Failures Are Worth Noting
December 8, 2009 at 2:44 pm
While the bulk of my trading revolves around chart patterns, and most notably the confirmation of them, failed patterns are certainly worth identifying.
Anytime a stock appears to be gearing up to make a move in one direction and suddenly goes the opposite direction, you can bet there are plenty of participants who are poorly positioned. Such is the case when patterns fail.
Obviously, the original plan goes out the window when a chart pattern fails, but that doesn’t mean you should turn your back on the stock. In fact, watching for plays to emerge in the new direction can often prove fruitful.
I just ran across an example that I wanted to point out to you. AXP had created a continuation pattern with a high channel following an uptrend, but price fell out of that channel last week to the downside. Now the stock is setting up for a possible secondary move downward, and it’s on my radar after seeing this chart today.
Here’s a look at it:
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
