Featured setups from Monday May 16, 2005 closing data symbol scan
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Notes for the Day
- Many of yesterday’s featured setups moved up rather nicely yesterday – focus on taking profits; follow up on some of the laggards (such as RIMM) but lets be cautious here today as there may be a reason for their under-performance.
- many oil and oil services made at least short term bottoming patterns yesterday – it may only be a bounce for a day or two, or could be a sector bottom of note – we’ve no idea early on how its going to play out. Hold only if they close strongly.
Long Setups
General common strategy: Unless noted otherwise, buy stop just above the “high” value, with an initial protective stop at the low value of the bar, not below the bar.
Test of Bottom – Reversal
OIL AND OIL SERVICES
It may be that all of these fail in the days to come, but when so many bottoming patterns show up across an entire sector, we have to at least give it a try. Or use XLE – energy ETF. Decline in industrial production numbers out this morning may put pressure on the group.
PRODUCERS
ECA:C (also ECA:NYSE, note a split is in progress) hammer poke out of triangle; secondary trendline (red) is drawn as such because a tall up bar is a key base of support
TLM:C (TLM:NYSE) test of bottom of range
OXY – test of bottom of range
APA – breaks decending trendline – has a harder hill to climb
BR – test of bottom of range – but hold only if closes above resistance
REFINERS
VLO, hammer poke out of descending wedge
OIL SERVICES
HAL – I’m a little less enthusiastic about this chart, but it is a test of bottom. Expect a bounce to resistance near 42.50 to try head lower at some point. Clearly its holding up better than some other oil services (RDC). Another alternative would be PDS.
RDC – almost a piercing line candle on a poke through the decending wedge
Retracement or Pause in Up Swing / Up Trend
QCOM
RIMM – follow up from yesterday
Short Setups
General common strategy: Unless noted otherwise, place a sell alert at or just below the low of the setup bar, and look for the first failed intraday bounce after the low has been broken. What we are looking for is price to push down, bounce a little, and fail again – this is where we want to get short.
Retracement or Pause in Down Swing / Down Trend
D – follow up for 1 – 2 days from here
JPM – still in the process of following through to the rising wedge target
05.05.17 08:52 #