Sunday, January 10, 2010

Few trading ideas - SWC, PAL, CGA, KONG

The first couple of trading ideas for today are both Palladium plays. The sector has looked especially strong with the recent increase in the price of Palladium. The speculation surrounding the launch of platinum and palladium ETFs, which were finally announced on Friday, has also helped. SWC is the largest American Palladium producer. The stock is on 52 week highs. The breakout has been on good volume. MACD looks good too, making new highs with the price. It can either be entered as a momentum play or swing traders could look for a pullback on low volume to look for an entry price.

PAL is a smaller, though more diversified, palladium play. This has also had a great run up in the last couple of weeks for the above-mentioned reasons. Also on new highs with strong volume. Look for a breakout above 4.20 with a stop below 3.90. It usually follows SWC, but the fact that it didn't on Friday when SWC had a huge run up means that Monday could be its day.

The next play on the watch list is CGA. Nice bounce off the 50 day MA on good volume and now consolidating on low volume for the nice couple of days. Could really break out if it crosses 18. Keep an eye on the volume. The fact that CAGC has broken out in the last few days increases its chances of a breakout.

And the last play is KONG. Shout out to Chartswingtrader - see blog list - for bringing this to my attention. A beautiful symmetrical triangle being formed here on decreasing volume. A breakout looks imminent. Again, keep an eye on the volume and the rest should follow.

Good luck trading!!

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