The first chart is the daily timeframe of high-end steakhouse Del Frisco’s, a summer 2012 IPO which tends to trade on the thin side (be careful with market orders). That said, you have an under-the-radar play in the dining space which has been hot of late. I would be looking at $18.80 as the major upside level to clear as price working through a tight “handle” consolidation.
Next is tech firm NOW. The stock pulled back in an orderly manner to its rising 20-day moving average and printed an “inverted hammer” candlestick on the dally chart last Friday. After a pullback, the inverted hammer can often signal a looming upside reversal, provided there is adequate upside confirmation. Thus far today, we are seeing a decent go at it by the bulls.
The third chart is the sector ETF for the materials. Bulls likely need this consolidation to remain light and orderly. If the selling picks up this week I suspect it will pressure many other areas of the market at this point in time, given much is at stake for a rotation.
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