All Entries in the "Technical Analysis" Category
GS Getting Ready
July 27, 2010 at 7:23 am
Financial stocks are always on the radar of traders, and GS is usually at the top of the list. Interestingly, this one looks like it’s gearing up for a move of its own.
After undercutting support on July 1st, the stock began to grind higher, eventually taking out the late-June high on strong volume. Since then, a rising trend line from the low has served numerous times as support. Over the past several sessions, some narrowing consolidation has been seen with the creation of a small descending trend line just overhead. These two trend lines are now squeezing price in a pressure-chamber fashion, and one of them is about to give.
Typically when two trend lines are vying for control, the longer one tends to win out. In this case, that could bring an upside resolution to this pattern. In keeping with the recent market strength, that’s a distinct possibility.
I’m watching GS for a push through the trend line at $149.10 for a trade. Earnings have already been released, and this is a highly liquid stock. Could be good for a few quick points, but the buyers will have to emerge and push prices beyond the trend line in order to get it. An unfilled gap from April extends to the $160 area.
If instead the lower trend line is broken (currently at $145), that would be a failure of this bullish pattern and would leave the stock vulnerable to at least a partial retracement of this bounce.
Here’s a closer look for you:
Trade Like a Bandit!
Jeff White
Swing Trading & Day Trading Service
www.TheStockBandit.com
Are you following me on Twitter yet?
Bidding On BIDU
July 26, 2010 at 7:19 am
When trades come along which offer potential on multiple timeframes, I always perk up. If one timeframe doesn’t appeal to me, the other can still add to my account.
BIDU is one such setup right here. The channeling stock has been range-bound since early May, and a breakout may be coming soon from this rectangle pattern. Upper resistance is well-defined, offering day traders a quick-hit setup for an intraday breakout play. But with confirmation of a breakout – meaning, a close above that resistance level – swing traders also have a shot at a measured move to develop in the coming weeks for a $12 advance to the $90 area.
A breakout could come any day in BIDU, so I’ve got it on my radar for a trade if it can push through the $78.65 resistance area. This one doesn’t have a real clear-cut exit as a swing trade, so it isn’t one I’m planning to keep a long time… Just long enough to get paid and move on to the next idea.
Here’s a closer look for you:
Trade Like a Bandit!
Jeff White
Swing Trading & Day Trading Service
www.TheStockBandit.com
Are you following me on Twitter yet?
Several Solars Set to Shine
July 19, 2010 at 7:17 am
Last week I discussed timing themes and the benefit of seeing repetition in the markets, but that’s just one way the astute trader can locate profits. Another is to notice sectors and groups which are seeing rotation.
Currently, solar stocks are making quiet but steady headway, exhibiting some very nice relative strength. While the market is bouncing from its most recent correction low, several solars are already in uptrends, boasting higher lows and higher highs.
Even better, there are a few of them which are looking poised for higher prices, provided of course that the patterns they’ve built are indeed confirmed.
I wanted to bring a few to you today and put them on your radar. Here’s a quick rundown of some setups I’m seeing…
SOL is pulling back in a shallow fashion here after a nice run, creating a bull pennant pattern. An upside resolution to this pattern could send this stock heading toward the spring highs:
STP just confirmed a higher low with the creation of a higher high, and has been resting for a week. A return of strength would give this one plenty of room to run higher, but the consolidation area needs to be cleared first – until then, it’s simply resting:
SOLF has been acting well, rising on strong volume in the past couple of weeks and basing here on quiet volume. An upside resolution to this bullish consolidation would technically be very positive:
JASO jumped big from the July 1st low, confirming a short-term higher low and higher high. It’s been consolidating, and looks ready to challenge resistance:
TSL is already on the move out of its consolidation after creating a higher low in recent weeks, but still has room to run:
Even TAN, the solar ETF is looking good, so long as this bullish pattern gets confirmed with a move higher out of the consolidation. A higher low and a higher high have both been established:
Trade Like a Bandit!
Jeff White
Swing Trading & Day Trading Service
www.TheStockBandit.com
Are you following me on Twitter yet?
Technical Grade: F
June 22, 2010 at 7:09 am
Every chart should be given a grade, if for no other reason than it’ll require you to evaluate the entire situation and make a decision. Should it be traded? Should it be watched? Should it be avoided?
Looking at the chart of F below, this one earns an ‘F’ on recent behavior as well.
Have a MENT
June 21, 2010 at 6:49 am
Quick trades can be among the best kind, keeping capital tied up for a limited time and offering fast gains when they do their thing.
MENT is one I’m eyeing for such a trade. The stock has been quite active of late, moving all over the map within a $2 range for the past several months. Key resistance is now just overhead, and is being tested on the current bounce. Even better, volume has been spiking with advances of late, pointing to solid participation on the buy side.
We may see a breakout occur in MENT any day now, so I’ve got it on my radar for a trade if it can push through the $9.75 resistance area. This one hasn’t shown a lot of recent continuation, so it isn’t one I’m planning to keep a long time… Just long enough to get paid and move on to the next idea.
Here’s a closer look for you:
Trade Like a Bandit!
Jeff White
Swing Trading & Day Trading Service
www.TheStockBandit.com
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?
5 Years!
January 15, 2010 at 9:27 am
In the world of trading where 5 minutes can seem like an eternity, 5 years feels like a really long time. That’s the number I’m celebrating today, as it was 5 years ago today that I published my first post over at my original blog. I spent one year writing there before creating TheStockBandit.net. I’ve been writing here ever since, publishing some 480 posts during this stretch.
I continue to be thankful for those of you who are regular readers. Your comments and emails are very rewarding, and I’m very hopeful that you return not out of habit, but rather because you find something useful here each time you visit.
I’m fully aware of the many, many blogs which have popped up since I began, giving you countless choices for where to spend your time. I don’t take it lightly that you choose this site as one on which to spend some of your time.
This blog continues to serve not only as an outlet for me to teach and discuss important trading matters, but also as a reminder to myself for what I need to aim for in my own trading. The growth of readership here suggests it has been helpful to you, which is certainly rewarding to see.
I’m excited to see what the next 5 years will bring. I plan to continue bringing you chart reviews, trading psychology articles, market commentary, trading videos, and whatever else is suitable for the environment we find ourselves in. I hope you’ll never hesitate to comment when you have something to add.
Thank you for reading!
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
