Sunday, January 23, 2011

Long and short setups

After seeing the market action last week, I think it would be prudent to not be over committed to either the bull or the bear side and be prepared for any eventuality. So, after quite some time, I also scanned for short setups along with the long setups. Here are a few of the stocks that I would be keeping an eye on next week. As usual, it being earnings season, be sure to check for when a stock is reporting before taking any position.

BVN - A steady downtrend with MA(20) acting as resistance. Broke important support last week and followed it up with a poor close on Friday. With gold continuing to look weak, watch out for a break of 40.

APKT - The consolidation pattern broke last week, resulting in a break of MA(20). The stock tried to bounce off MA(50) on Friday but had a poor close. A break of MA(50) will probably see 50 being tested.

SRX - A poor close on Friday but the momentum still lies firmly with the bulls. A close above 26.25 could see start of another move up.

RJF - Broke out on decent last week and followed it up by a day of consolidation. Watch out for a break of 36.42 or a bounce off the marked trendline.

ACI - Failed at MA(50) on Friday. Watch out for a move below 30.75.

IAG - Interesting to see a gold stock actually do well in the last few days. Speaks volumes about the relative strength of this stock. Watch out for a move over 19.50.

LO - Move lower followed by a period of consolidation followed by another move lower. That seems to be the story of this stock. Watch for a move below 73.95.

I will be back later with Chart of the Day.

Take care and good luck!


Ken said...

Did you catch APKT short today. Setup nice at 53. I had alert at 52, and didn't see the 53 setup until it was too late.

positiontrader said...

Yeah, I did catch some of the move down. I set an alert on the stocks I post here at the levels I mark on the charts. So, IF I am at my desk, I do get in the stock if the volume etc support an entry.