All Entries Tagged With: "Chart Reviews"
Burrito Time!
January 3, 2012 at 10:19 am
Don’t look now, but CMG is back on the move – and potentially in a very big way. The chart below outlines the large, multi-month ascending triangle that’s been forming, and currently we’re seeing a breakout attempt in the stock.
But can it stick?
That’s always the million-dollar question, but with a solid uptrend in place and prices now pushing to new highs, I certainly wouldn’t bet against it. In fact, I like it for a push to the $425 area, which is the projection of this pattern (add widest portion of triangle to breakout zone).
Here’s a closer look at the chart:
An aggressive stop would be a gap fill to the 12/30 close of $337. Nice setup.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
Always Look to the Left
December 28, 2011 at 2:46 pm
A friend of mine recently mentioned that the area to the right of price is the only place on a chart where you make money. He’s absolutely right. But I’d add that by also looking to the left, you can save money as well.
Take for instance CXO. Right now the stock is sitting in a short-term bearish formation. The stock recently declined for a couple of weeks, then has attempted to bounce – without success. That has created a small rising channel, or bear flag, which is quite likely to be resolved to the downside when taken at face value.
So am I going aggressively short here? No, and here’s why:
Short-term, this looks like it wants lower. But by looking to the left, I see more than just the selloff and feeble bounce attempt. I see that just about $3 lower is a major level which has served as both support and resistance in recent months. That could again provide buyers with a spot to take a stand, and it poses a threat to this setup as a bearish play – a roadblock for the trade.
Here’s a closer look at the chart:
Always take the short-term pattern you’re seeing in context. With that in mind, this bear flag isn’t a high-probability trade given support isn’t far below. Furthermore, the overall trend in recent months hasn’t changed, as this is really just a range-bound stock heading back toward key support. It might not hold, but trading is about probabilities, and they aren’t real favorable in this case for a move of more than about 3%.
In other words, always look to the left.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
Hoping to See You in 2012
December 16, 2011 at 9:07 am
This past weekend I had the pleasure of doing some live training in conjunction with Worden, and I thoroughly enjoyed it. Getting to teach a couple hundred traders in a seminar setting was a treat (I’m standing in the front of the room in this pic), and it was fun to cover a lot of ground on all things trading.
We discussed key principles of trade selection, a trader’s mindset, and how to prepare like a professional on a regular basis. Then we built a watch list together with attendees offering up their favorite tickers, spouting them off popcorn-style as I added them to the list. From there, we just analyzed the price action to see what the charts were telling us. When you listen, the charts tend to have a lot to say!
Anyway, I’m slated to teach and/or speak live in several more cities in 2012, and I hope to see you at some point. Houston in Feb, NYC Trader’s Expo in Feb, Atlanta in March, and Denver in June are currently on the calendar. Make plans to attend one of these cities and I will do my best to make it worth your while.
To those who were in Dallas last weekend, I hope you enjoyed it as much as I did!
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
People of Wal-Mart: Still Spendin’
December 15, 2011 at 9:17 pm
While the People of Wal-Mart website is always an entertaining bookmark, the stock itself is no joke. Sporting nearly a 20% return since its August low, this slow mover has outpaced the S&P’s return by about 2 1/2 times.
Checking out the recent price action, the stock is a bit range-bound, but a closer examination reveals an often misunderstood pattern: the cup & handle pattern. The look of the pattern is easily identifiable to even novice chart readers, but they usually fail to take it in context. Here, it’s right where it should be found – within an uptrend.
Here’s a closer look at the chart:
A confirmation of this pattern with an upside exit would put this one in the mid-60’s in short order, so it’s worth keeping on the radar even though it’s far from a momentum name. If anything, this is simply an example worth pointing out. The handle may need a bit more work and it needs to threaten the upper trend line to indicate a move is imminent, but it belongs on the radar no less.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
Trading Timeframe Influences Position Size
December 13, 2011 at 8:58 pm
Equally important to locating entries and exits is the matter of sizing your positions. Too much and you can’t stick with the trade plan, aborting in favor of diminishing emotions (whether greed or fear). Too little and you don’t maximize the use of your capital.
While some traders prefer a standard lot size, in this video I’ll discuss the notion that your timeframe for the trade should influence your position size.
Yes, the chart itself will help determine your exits, but that’s also a function of how long you’ll expect to be in the trade.
Check out the video for a quick 5-minute explanation and you’ll see exactly what I mean.
(Direct video link is here for those interested in sharing).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
2 Levels to Watch for GLD
December 12, 2011 at 5:45 pm
GLD is the 2nd-highest capitalized ETF around, only behind SPY. It’s nearly triple the capitalization of QQQ, just to give you some perspective. And with such a fixation on the economy (both domestic & global), it’s no shock that the sometimes safe haven of gold has been in the limelight.
Some suggest GLD has topped, and in the near term, they have technical reasons which back that up (lower highs). But a closer look at the chart reveals a pair of important levels to keep on watch, so that’s what’s covered in this video.
(Direct video link is here for those interested in sharing).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
DFW & North Texas Traders…
December 2, 2011 at 9:51 am
If you’re a DFW trader or are located around the North Texas area, make plans next Friday to see me present live in conjunction with Worden in Dallas!
On both Friday & Saturday (Dec. 9 & 10) at the Worden TC2000 workshop, I’ll be presenting in the afternoon. It’s at the Doubletree Hotel Dallas near the Galleria (4099 Valley View Lane
Dallas, TX 75244). The workshop starts at 10am and ends at 4pm, and I’d love to see you there either day.
Specifically, I’ll be discussing Preparing Like a Top Trader in Today’s Market. I have a lot of good stuff planned, plus you’ll see the new version 12 of TC2000.
Make plans to be there by pre-registering or just show up (it’s free)!
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
