Reader Requests - Part 3

Here is the third and final part of analysis of reader requests. Here are the links to Part 1 and Part 2. I hope these charts have been of some help to you readers.

CSTR - Not only an ugly move on Friday, but moreover, also an ugly close. Next support at 38.28 and wouldn't be surprise to see it get tested. 

FCS - The regular readers of this blog know that I have liked this setup for some time now. It was in fact, even Chart of the Day recently. It is setting up nicely for another move up. Also works as buy on dips until MA(20) is breached.

COF - Impressive and important move on Friday. The close over 47.71 was important. Looks a tad extended and would love to see a pullback to this level. One to watch out for financial continue to perform well.

ZN - Wouldn't touch it as a long play until it breaks 4.54. The questions is why go bottom fishing when there are so many stocks doing well and setting up nicely out there. Seems to be putting in a bottom but would have to see how it deals with MA(20).

TRW - A promising set up in a good sector. On breakout watch. Expect to see a strong move in this in the next couple of days. Like it more as a momentum trade rather than a swing trade due to the distance of the price from MA(20), which this stock has a habit of testing.

MIPS - Buy on a pullback close to lower trendline which is also supported by MA(20) or also on break of upper trendline. Like the way it has been behaving since the breakout in October. More upside in this one.

 

RST - Like the higher lows being put in this one and watch out for a break of the upper trendline. But there are better plays than this out there and the gap resistance is always going to be a tough nut to crack.

Take care and good luck!

Reader Requests - Part 2

Here is the second part of readers requests. For first part, click here.

BEXP - Love the consolidation in this one. On breakout watch.

PVH - Been in a downtrened for over a month. Notice the relatively low volume on the up days during the last week. Wouldn't want to be long this one even if breaks the trendline due to falling MA(20) overhead. Much better plays out there.

ASH - Coming off a nice consolidation. Would like to see a break of the marked trendline on volume.

TXN - Gotta love this one. Nice rounded consolidation. Volume seemed to be picking up on Friday and the close above 34 was crucial. On breakout watch.

GSIT - Overbought. That doesn't mean it wont continue go higher but just that I would trade this as a day trade rather than a swing trade here. Nice close on Friday but the volume seems to be decreasing. Keep moving stops higher if you already in this one. Whatever you do, don't short a stock like this with so much momentum behind it! It will eventually go down but don't try to call the top.

NVDA - See comments on GSIT above. Looks like it has another move up in it yet.

NIFTY - This one could be used as a text book example of a trendline. The same trendline acted as resistance in January, April and September. On finally being broken in September, the same trendline now became support and was successfully tested in October. The trendline was once again broken in November and acted as resistance on December, thus providing a wonderful opportunity to go short. 28 is important support from last March-April and also due to presence of MA(200). One could expect to see a bounce here but mostly, it will be a short term bounce. Keep a close eye on the volume of the bounce if it happens. Don't want to go long here. Best to watch from the sidelines on how the battle of MA(200) turns out and then enjoy the spoils of war with the winner.

Am done for now but there are still a few more charts left. Will post Part 3 sometime later today.

Take care and good luck!

Reader Requests - Part 1

Here is the first post on the reader requests that came in on Saturday. For those of you who can't find your requested charts in this one, I will be posting the second batch later in the day. Earnings season gets truly underway this week, so be sure to first check out when a stock that you are interested in is reporting before getting into it. Personally speaking, I don't like to hold any stock through its earnings. No exceptions to this rule, not even Apple!

GS - Setting up nicely here. MA(20) providing nice support the last month or so and higher lows being formed. The close above 174.50 on Friday was important. The weekly chart is also attached below the daily. The stock is testing the trendline here and watch out for a break out soon.

CSKI - A beautiful downtrend. MA(20) acting as tough resistance recently. A short on the break of 6.25.

 

SWY - Lower highs being formed on this one. Wouldn't want to go long this over here. If you are already long, keep a stop loss just below 20.50 and one eye on the exit. I, personally, don't like to hold on to stocks that can't perform on good days. Its usually a sign that they will lead the way down on down days.

ACTG - Like this one here or on a pullback to marked support. Consolidating nicely but wouldn't like to see MA(50) breached again, so a stop below that should do the trick. New highs soon on the cards.

FDX - Looks great apart from the weak close on Friday. Lovely consolidation here. But more interesting is the weekly chart shown below the daily chart. The stock is at crucial levels here which have acted as support in 2006 and then as resistance from 2008 onwards. Watch out for a breakout on a move over 99. One to buy on any dips.

MOTR - This one is for one of my favorite traders. The chart is still a work in progress. The volume pattern is beginning to turn bullish after the gap down on big volume. 22 should be an important resistance level due to a combination of previous highs, Fibonnaci level and quite possibly MA(50). Looks good for a small starting position here and a further add on a break of 22.

ATML - When did this stock last have a down day?? I remember saying this was a good buy on a break of 10.25! Coming back to the present, like the way it is consolidating with narrow bars. Watchout for a breakout on break of 14. Like it more as a momentum play rather than a swing play. The stock has the habit of testing the MA(20) often, so further consolidation or a small pullback will do it no harm. So, a buy either as a quick breakout play on break of 14 or as a swing trade on test of MA(20).

More charts coming up later in the day. Take care and good luck!