Watchlist 9.4.12 | Gangsta’s Paradise

The US dollar is looking heavy but it managed to close above support, 81.16. I wouldn’t be surprised to see a small bounce early this week & push equities lower. Looking at a longer time frame I see more substantial support at 80.43.

LONGS:

VRSN – Working higher in an ascending triangle. Resistance at $48.50 & building a nice low volume consolidation pattern.

LULU – Riding the 8ema up to gap resistance of $65.80 during the last week. Clearing $65.80 on heavy volume should bring us to the gap fill of $69.82.

CLX – Another rising triangle I’m watching with resistance at $73.65. After a healthy push higher on heavy volume I have a first target of $75.44.

RL – Similar setup to LULU, watch for a move over $160.80 with above average volume. Target is a gap fill of $167.36.

AIG – Building a base under recent highs on lighter volume. This is healthy action you want to see, the longer the base — the more powerful the move to start the next leg higher. Watch recent highs near $35.05 with any sign of institutional accumulation, something like 300%+ daily average volume.

IBM – Stochastics put in a nice higher low and possible inverted head & shoulders pattern. I’m considering scaling in this week with stops below $193 but my full position buy entry would be clearing the descending trend line on above average volume with a first target of 208.70.

RTN – Watching this consolidation pattern under recent highs of $56.90. Watch for above average volume to start the next leg higher.

SHORTS:

GOOG – Now just hear me out…. Only IF the market starts to roll over, GOOG is testing the upper range of a multi year rising channel.

NFLX – As long as NFLX is trading below the daily moving averages, it would seem to be a pretty safe short candidate. Target is recent lows. 54ish.

WCG – Consolidating below the 200ema on low volume after a large push lower. If the market rolls this one should fall easily to the first target of 53.25.