Sunday, October 24, 2010

Consolidation plays

Here is a watchlist of some stocks that have been consolidating nicely for the past few days. The way I like to play these kind of setups is by buying them on break of important resistance levels, preferably on volume. Another way you could possibly play them is by getting in on test of support i.e. on bottom end of the range. Below the consolidation range would be one option to place your stops. Sure, you can take a partial position now too and then add on the break of resistance. No matter which way you decide to play them, be sure to check out the earnings date for when these stocks are reporting. I have mentioned the important resistance levels along with the stocks.

MENT - Break of 11.

CAB - Break of symmetrical triangle

ORLY - Break of 54.50

SPN - Break of 27.50

TJX - Break of 45.50

And if you are looking for more explosive setups, here are some heavily shorted stocks that I like for next week.

Take care and good luck!

No comments: