Since the FOMC meeting, we've been laying low on the swing trades as we surveyed the big picture of the major indices. While we are not finished in that department, there are some interesting setups on the stock side.
As discussed in the last post of the Daily Swing Trade, I found a number of marginal buy setups amongst the top traders on Monday. However, I didn't think they would be able to reach the upside targets, thereby making a graceful exit a priority.
This morning, we find that there are still a couple of charts that might be able to lure buyers in one more time, so long as yesterday's low holds for them, and here's why.
ATML is a name from the past. At this point it's pulled back to the 20-day EMA below, and this is a potential point of support. The late-comers might still be willing to play this old name, mainly because it's cheap, and therefore, the risk doesn't seem so ominous.
If we look at ATML from another perspective, we can see that it's also come back to a potential point of support from a swing chart to set up a classic bull flag on the daily chart. This is a buy setup, but it's a lower probability one. There are two entry points fo this setup. The first would have been triggered into the close yesterday, when it traded back into the January 23 swing low (stop loss placed just above yesterday's low). The second would be on break of yesterday's high, with an initial stop loss at $7.04. There are two targets overhead, the January 27 swing high, and then the January 20 swing high.
JNPR is the same setup as ATML. It MUST hold yesterday's low, and the buy setup is triggered on break of yesterday's high with an initial stop loss of $27.80. The first target is the January 27 swing high and the second one is the January 20 swing high.
On the short side, HON triggers a short sale on break of yesterday's low with an initial stop loss of 36.37. This is potentially a small head and shoulders top formation here and this is the trade that I will be stalking today.
04.01.30 09:18 #