Wall Street Traders Report June 17th

Bank America Corp (BAC) : bullish breakout from the FLAG pattern.

Bank America Corp  (BAC)
Bank America Corp (BAC)

 

 

OvaScience (OVAS) : I posted the cup and handle breakout a few weeks ago . This shows ongoing promise with a short term resistance breakout.

OVASCIENCE  (OVAS) 17.6
OVASCIENCE (OVAS) 17.6

 

Happy Trading

Flavio

 

Wall Street Traders Report June 1st

Carter Inc (CRI) : Breakout from resistance and ascending triangle has held above this level and should be supported at prices level $101.75.

Carter Inc (CRI)
Carter Inc (CRI)

 

NiSource (NI) : Has formed a Bullish Flag but was unable to close above the upper trendline on Friday to signal the long trade. I will continue to monitor this on my watch list for a bullish close above this price level.

NISOURCE (NI)
NISOURCE (NI)

 

Mondelez (MDLZ) : Bullsih breakout on Friday from the Flag pattern on strong volume. Price should continue to move up-wards from here if the signal is to prove valid.

Mondelez (MDLZ)
Mondelez (MDLZ)

 

Happy Trading

Flavio

 

 

Wall Street Traders Report April 21st

Walt Disney Company (DIS) : Trading in a strong up-trend. Has formed an ascending triangle with horizontal resistance at $109.00. Wait for a breakout close above this level to trigger a long signal.

Walt Disney Company (DIS)
Walt Disney Company (DIS)

 

 

Pfizer (PFE) : Trading in a strong up-trend with a horizontal resistance level of $35.50. Wait for a breakout close above this level to trigger a buy signal.

Pfizer (PFE)
Pfizer (PFE)

 

 

Apple (AAPL) : Price currently supported by 50 day ema. Short term resistance at $130 which price needs to clear for long position trigger signal. A positive earnings announcement on April 27th may be the trigger for such a move.

Apple (AAPL)
Apple (AAPL)

 

 

Happy Trading

Flavio

Wall Street Traders Report April 8th

S&P500 Index: The index tracking the major US listed stocks is currently trading in a range bound by resistance of 2,120 and support at 2,040. Over the past few weeks the index is converging and forming a triangle. Reporting season is likely to provide future direction with better than expected results likely to push the index higher but disappointing results could see the index break lower below the support level.

S&P500 Index
S&P500 Index

 

 

RPC Inc (QEP) : the share price has formed a bottom reversal inverse head and shoulders with a confirmation of the pattern yesterday with a breakout out above the neckline.

RPC Inc  (RES)
RPC Inc (RES)

 

Happy Trading

Flavio

Traders Report November 19th

Traders Report November 19th

Australian shares have fallen for the third day in a row. The technical’s show that the index fell straight through the support level of 5420 and closed at it’s low today of 5352. This level was the support low seen in April to June. If the price falls through this price level then it is likely to signal further weakness and the index could then begin to fall all the way down to the low’s seen in mid October.

In contrast the US markets are continuing it’s bullish run with the S&P500 index making a new high overnight. It is clear that the Australian market is trading independently of the larger US market and is failing to follow it’s lead. This may signal that investors and traders are bearish about Australian market conditions and see better value in other markets. A pull back in the S&P500 index is likely to be supported at the resistance level of 2020 points.

I am neutral at present and not entering any long trades on the Australian market until I see evidence of the support level at 5350 holding and retracing above 5420.

Happy Trading

Flavio

All Ords Index
All Ords Index

 

S&P500 Index
S&P500 Index

Wallstreet Traders Report June 11th

Wallstreet Traders Report June 11th

Facebook (FB)

Shares in the social media giant Facebook (FB) increased 4.6% at the close of trading on Tuesday. This increase was on the back of the announcement  a PayPal head will join the company to head it’s messaging products division.

The share price below shows the recent price action with a strong breakout from recent congestion. The breakout occurred on relative strong volume which adds to the bulls conviction to rise the share price.

Traders can look at entering a long position with a target price close to the March high of $72.00. Stops can be placed under the most recent congestion low of $62.00.

Happy Trading

Flavio

Daily Chart Facebook (FB)
Daily Chart Facebook (FB)

 

 

Wall Street Traders Report May 13th

Wall Street Traders Report May 13th

It was all positive on Wall Street overnight with the Dow Jones Industrial Average hitting an intra-day all time high of 16,704 points. At the close of trading the Dow Jones had increased 0.68% (112 points) to close at 16,695 and breakout above December resistance which it had attempted to surpass over the past few months without success. Momentum could now continue to push the index forward to resume it’s up-trend so traders can look for opportunities in stocks that make up the Dow Jones Index. I was able to identify two such shares in Catepillar Inc and General Electric that show positive technical setup’s for long position trades.

Dow Jones Index May 12
Dow Jones Index May 12

 

Catepillar Inc (CAT)

Caterpillar Inc. (Caterpillar) is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The stock price is in an up-trend with yesterday’s trading showing a triangle breakout. I will wait for confirmation of the breakout today and look to place an order to buy if the price can open above yesterdays low. The up-sloping trend line should offer support and seems a logical place for a stop-loss.

Caterpillar Inc (CAT)
Caterpillar Inc (CAT)

 

General Electric (GE)

General Electric Company (GE) is a diversified technology and financial services company. The products and services of the Company range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products.

After a sell off in January the price has steadied and risen in an orderly up-trend. Recent price activity has resulted in some consolidation with a pending up-side breakout a possibility. If this does occur then the price could continue up-wards with a target of $28.00. At this stage I will wait for the box breakout to occur before committing to any long position trade.

General Electric (GE)
General Electric (GE)

 

 

Wall Street Traders Report April 28th

Wall Street Trader Report April 28th

It’s been several weeks since my last blog post as I decided to take 2 weeks off from trading the markets. In that time I have been able to take a step back and analyse the broader market sentiment without the pressure of finding new trading opportunities. This article will focus solely on the three main US financial indexes of the Dow Jones, S&P500 and the Nasdaq 100.

Dow Jones Index 

In early April the Dow Jones tested the December 31st resistance level of 16,600 but failed to clear this level and subsequently fell and held at the support level of 16,050. The rally has headed back up towards the 16,600 level but appears to be losing momentum. The current chart looks to be forming the right shoulder of a top reversal head and shoulders pattern. If the index continues to fall and then breakdown below the 16,050 support then this would signal a valid head and shoulders reversal formation. At that point further declines towards the next support level of 15,350 would be possible.

Dow Jones Index
Dow Jones Index

S&P 500 Index 

The broader S&P500 index has been slightly less volatile than the Dow Jones index above. It is currently range trading in a longer term up trend. The price appears to be having trouble clearing the 1,900 resistance level and it would not surprise me to see the price head back towards the up-trend line and find support there before it pushes higher.

 

S&P 500 Index
S&P 500 Index

 

Nasdaq 100 Index 

The Nasdaq is currently trading in a downward trend channel and making a series of lower highs and lower lows. The bigger picture shows the possible formation of a head an shoulders reversal pattern as I have illustrated with the three black circles. I see the index pushing back towards the support level of 3,420 in the coming weeks and if this level is broken then it would validate the reversal pattern. At this stage I will be staying on the sidelines for any long position trades for shares in the top 100 Nasdaq Index.

Nasdaq 100 Index
Nasdaq 100 Index

 

Happy Trading

Flavio

Wall Street Traders Report April 9th

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.

Dow Jones Index (DJI)
Dow Jones Index (DJI)

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.

S&P500 Index
S&P500 Index
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.

Senior Housing Properties Trust
Senior Housing Properties Trust

 

 

Wall Street Trader Report February 26th

Wall Street Trader Report February 26th

Jabil Circuit Inc (JBL)

Jabil Circuit has an interesting chart setup with the formation of an early up trend with a series of higher highs and lows. The stock price was able to breakout from its downtrend a few weeks ago and is nearing it’s next resistance at $18.90. Prices tried to breakout above this level yesterday with a close at the resistance price.

Traders can watch this setup for a bullish candle close above $19.00 to trigger a buy signal.

This chart shows a very good example of support and resistance in action as illustrated by the S/R horizontal lines. During the down trend the pivot lows which acted as supported turned into resistance with the resultant continuation of the downtrend. This technical knowledge can be used in a similar fashion during the up trend with resistance levels now expected to act as support on any price weakness.

Chart 1. Jabil Circuit (JBL)
Chart 1. Jabil Circuit (JBL)
Pioneer Natural Resources Company (PXD)

Pioneer Resources (PXD) has formed a bullish reversal pattern called an inverse head and shoulders. This pattern is made up of a central pivot low called the head and smaller lows on either side which make up the shoulders. A bit of imagination is needed to see this pattern as it doesn’t always form perfect text book examples in real life. The pattern below has the appearance of two heads which could also be considered a double bottom.

On Monday the price broke upwards and closed above the neckline which provided our trigger signal to go long. Confirmation of this setup was provided by the bullish cross of the 20 and 50 day exponential moving averages and the reversal pattern taking place at a previous support level.

Traders can look to go long with stops placed under the neckline and a target close to the next resistance of $220.

Chart 2. Pioneer Natural Resources (PXD)
Chart 2. Pioneer Natural Resources (PXD)

Happy Trading

Flavio