Looking at tons of charts this weekend, there is similar patterns on various charts. The majority of stocks have declined the past 3 days and are nearing support of their previous break out highs. The patterns look to SPX as it has the potential to move to test its August highs, but has resistance above it from its breakout highs which it broke below.
Now if the market is going to bounce, the stocks will have to hold these support levels and break out of the resistance. The danger to getting long these stocks, is if selling pressure picks up and these support levels break selling will quick, since now the longs from the breakout highs are underwater and the longs that were holding from the previous breakout highs are underwater. What the support levels do provide is a easy stop loss.
On the opposite side of the trade, many stocks will begin to test their break out highs from below. This level many provide strong resistance and may be a good entry short.
The market is definitely at a turning point. Here are some stocks to play both sides:
*These are not recommendations or suggested trades. They are ideas, please seek professional advice before placing any trade and trade at your risk. All trading involves high risk; past performance is not necessarily indicative of future results.
Sorry for not having the charts. Stockcharts.com is down this morning.
|TICKER||Long or Short||Reason|
|AGEN||Long||Long above 2.25 break of down trend line|
|AMSC||Short||If breaks 29.45 sell|
|ATLS||Long||with a break above 25|
|ATPG||Short||Stop at 20, great short on the weekly timeframe|
|AXL||Long @ 6.83-.62||20eam first support and HL support at 6.63|
|BANR||Long @ 2.85||wedge forming bottom fo trendline is at 2.85|
|BBI||Long ||some HL support around 1.10|
|CENX||Long ||risky but if it can get above its 50 ema it's safe, doji after 2 big down days is showing stalling|
|CPF||Long||doji after down day on week volume |
|DTG||Short and Long||Short around 25 but a long at 22, unless 22.00 breaks short there|
|FTK||Long||HL support a 2.00|
|GLBC||Short||Stop at 15.20|
|GMCR||Long||Bull flag pattern, at least 2 or 3 point move in stock|
|IBB||Long||stop at 79.90, invert hammer after two 3 down days, support at 80.00|
|JOSB||Short||weekly looks good short, new resistance at 45.44|
|LHO||Short ||break of 17.00|
|LXK||Short||No support for this stock till 18|
|MAC||Long||Support at 29.85 doji after a down day|
|NCS||Long||Consolidation move, bull flag forming|
|PALM||Long||Reversal candle on daily chart and ended at support up in the premarket|
|RT||Short ||if it breaks 8.50 sell, it breaks |
|RYL||Long ||It holds $20,00 get long|
|SFI||Long||Support at 2.97|
|SIGM||Long||Suppor at 14.00-14.20|
|STEC||Short ||Short @ 15, long if it breaks above 15.40|
|UA||Short||if it breaks 27.00|
|INT||Short||weekly resistance at 49.00|
STSA Long HL support at 2.00