Wall Street Traders Report April 10th
The US markets enjoyed a bullish day on Wednesday with gains made in all the major indexes. The S&P500 gained over 1% and manged to bounce off the 1,840 support level I mentioned in yesterday’s blog. The S&P500 is currently trading in a range bound by support of 1,840 and resistance of 1,895.
Coca-Cola Company (KO)
The chart for Coca-Cola shows an ascending triangle with horizontal resistance at $39.00. For this set-up I will be watching for a breakout closing price above $39.00 to trigger my buy signal. If this occurs then I will be targeting a price of $41.00.
Eli Lilly and Co (LLY)
Eli-Lilly has been trading within a rectangular range bound by support at $57.00 and resistance of $60.00. Yesterday saw a breakout closing price above the $60.00 resistance level. I will look for confirmation of the breakout today with a second day close above $60.00.
Wall Street Traders Report April 9th
The technical’s for the Dow Jones Index show signs of reaching support levels and perhaps falling slightly further before it’s able to resume it’s up-trend.The Index has retraced after touching it’s resistance level of 16,600 and I expect it to keep falling towards the support level of 16,050.
In comparison to the Dow Jones Index above the S&P500 index has already reached it’s short term support level of 1,840. Prices should hold here in the short term before the index is able to resume it’s up-trend. A break below this support region could see prices drop further all the way towards 1,815 points.
Senior Housing Properties Trust
The chart shows the formation of a bullish reversal inverse head and shoulders pattern. The price was able to break through the $23.00 neckline resistance two days ago.
Traders Report AMP (AMP) Long Setup
AMP (AMP) is a listed company on the Australian Stock Exchange and provider of life insurance, superannuation, pensions and other financial services in Australia and New Zealand. AMP has a market capitalization of over $14 billion.
The chart below shows the 12 month price action. A short-term down trend was broken in late February with the subsequent formation of an ascending triangle with a horizontal resistance level of $5.10. On this setup I will be waiting for a resistance breakout and close above $5.10 to act as my trigger signal to go long (buy).
If the resistance breakout does occur then based on the measured moved theory the height of the triangle extrapolated from the resistance level provides a target level of $5.50.
Copper Short Trade Setup
The price of Copper is closely aligned to global economic construction and building. Much of the fortunes of the price of Copper are based on the economic news emanating from China which accounts for over 40% of the global demand of the mineral. The price of Copper is in a strong downtrend and the current price action looks healthy for a short trade setup.
The chart below shows the plunge in prices in early March with the subsequent rally forming a bearish wedge pattern. I suspect prices will breakdown through the lower trend-line of the wedge and resume its downtrend. You will also note the bearish candle from 2 days ago which formed a long tailed rejection pinbar. I will use the highs of this pinbar to set my stop loss order.
Traders Report Magellan Financial Group (MFG)
Magellan Financial Group trades on the Australian Stock Exchange. The company establishes and manages globally focused, performance oriented investment funds and invests in boutique funds managers.
The chart below shows the recent price action has formed an ascending triangle with a horizontal resistance level at $13.96. I will be watching for a resistance breakout and a close above $14.00 to trigger a buy signal.
Traders Report Sirtex Medical (SRX)
Sirtex Medical (SRX) trades on the Australian sharemarket and belongs to the listed companies of the All Ordinaries Index. Sirtex is a biotech company involved in the research and commercial development of treatments for liver cancer.
The chart below shows a strong up-trend developed after the mid January breakout and explosion in prices. The recent price action has seen the formation of a bull flag pattern.
On this setup I will be watching for a breakout from the upper trend-line of the flag on good volume.
Wall Street Trader Report March 21
It’s been a quiet week for me on the trading front mainly due to missed opportunities on the Australian market with limit orders not being hit. As trading is not my full-time job this makes it difficult to see new opportunities as they arise during the market hours as I am busy working in my full-time job. This is one of the disadvantages of a part-time trader with a day job as many of you may be, however, I am hoping to be able to enter a trade on the US markets when they open in a few hours from now. To finish off the week I will write about a long and a short position trade setup.
LPL Investment Holdings (LPLA)
LPLA formed a strong up-trend from October to January when it hit a high of $54.91. It then began to move sideways and formed an ascending triangle which is a sign of consolidation and ordered profit taking. Yesterday saw a breakout from resistance with a strong bullish candle. I’d like to see the resistance price re-tested and to hold above this level before entering.
Amazon.Com (AMZN) has formed a bearish wedge after a very bearish breakdown through support on January 31st. I have highlighted the re-test of the support level which acted as resistance and halted further price increases. You can see how the candle tried to break through the resistance level but closed lower forming a long-tailed candlestick.
Yesterday saw a breakout from the lower trend-line making up the wedge pattern. I suspect the price will resume it’s downtrend from here and may fall all the way back towards the support level of $340. Any price increase should be held up by the resistance level of $380.