Markets have pulled back to interesting levels. The daily $SPY chart tested the 50% retracement and closed above them on Friday. However, bonds have been showing strength and have potential to continue to higher levels. Don’t argue with your stops and continue to be nimble.
LONGS:
ABX – Possible inverted head & shoulders setup. Only concern for me the volume action for the last two weeks is text book for a bear flag. A close above the 8ema would be ideal for an entry and stops below recent lows.
ATW – Testing this rising trend line and 50ema. An argument could be made for a cup & handle pattern as well. First target is $49.75.
NFLX – Bull flag forming. Last Friday the 8ema caught up to the price, I am anticipating the confirmation move or pattern failure on Monday.
ORLY – After clearing the descending trend line last week price has been consolidating. Next technical buy area is $92.00 with volume, but I would consider starting a small long position on the bottom range of this consolidation pattern.
SHORTS:
AMZN – If this rising trend line is violated I think a test to volume supported levels are likely. Looking for a first target of $213-214 if selling volume continues.
CRM – Looking for a test of this rising trend line. If selling volume continues I am expecting a tag of that trend line around $135.
SHW – Bear flag. My stop would be a close over the 20ema and first profit target is volume support.
VMW – Descending triangle and a lower high. This is trading in the middle of the recent range so I would keep it relatively light until it tests one side.
Stare into my screen
It gives me what I need,
@AffluenzaVirus
