Actionable Setups 12/1/13

WLL

WLL trying to hammer out a bottom around the prior breakout area. Positive RSI divergence and MACD histogram suggesting a possible bottom in the coming days. Looking for the sector as a whole to attempt a bottom this week.

WAG

WAG possible rounding top as it closes under its short term EMAs. A break below trend line support will trigger a short with a price target of 57.75 at the 50 day EMA.

 

TLYS

TLYS trying to hammer out a bottom at longer term support but not much to do here until it can move above Thursday’s high into the gap. If long use this week’s low as a stop.

 

TLT

TLT gave a nice bounce off 102 support about 5 or 6 sessions ago and is flagging near the highs of a short term descending trend channel. Needs to break above the 50 day EMA and descending trend line to get really interesting. Remains range-bound until rates on the 10 yr breakout/breakdown.

 

SI

Silver attempting to round a bottom here with a positive RSI divergence and MACD cross but needs to get above the 8 day EMA with volume to get interesting.

 

SCTY

SCTY breaking out of a bullish falling wedge last week after holding the 100 day EMA and confirming a positive RSI divergence. Looks good going into this week as long as it holds the rising short term EMAs. First target 55.

 

ROSE

Possible short setup if we break below last week’s low with volume. Next target on a breakdown would be trend line support about 4 points lower.

 

REGN

REGN flagging at the top of an intermediate term descending channel. Break above this week’s high will target a move to 305.

 

OAS

OAS looking to hold the prior breakout level Harami suggesting a change of trend from lower to neutral/higher. RSI and MACD looking to move positive in the next couple of days. Watching the option activity in OAS, DO, WLL, KOG as we saw some call buying last week.

 

 

MSFT

MSFT flagging at 12 year trend line resistance. A breakout above this week’s high on heavy volume and we’ll likely see a move to 40. Call buying has been prominent in this name over the past few weeks.

 

MGM

MGM trying to breakout of a bullish falling wedge after an RSI positive divergence confirmed a bounce off the 100 day EMA. Will signal long with a break above trend line resistance with its first target at the prior reaction high at 19.80 where it will attempt to move into the gap produced earlier in the month.

 

LVS

LVS attempting to breakout of a six week consolidation pattern but looks like it needs to consolidate at these levels and allow the 8 day EMA to catch up. Positive RSI divergence as well as a MACD cross support a breakout to new highs.

 

KOG

KOG similar action to the other names in the space i mentioned. Hammer on friday just above trend line support. Positive RSI divergence and MACD cross coming in the next few days suggesting a possible reversal to the upside.

 

KYE

KYE positive RSI divergence produced a bounce off trend line support. Would’ve liked to have caught this earlier at 27 but chart remains bullish as long as the 8/13/21 day EMAs continue to act as support. Could see a test of the falling 100/200 day EMAs above at 28.60.

 

KEY

KEY breaking down below trend line support of a wedge consolidation pattern. A break below this week’s low (which corresponds with the 21 day EMA) will likely warrant a test of the 50 day EMA.

 

K

K testing the lower trend line of the handle of a bullish cup and handle accumulation pattern. Will be looking for a reversal candle this week to get long as we have retraced just over 50% of the patterns length. Could be setting up for a nice breakout in the coming weeks. This pattern is interesting as if we see this and other consumer staples names break out that may signal the market pricing in a breakdown in rates. Still too early to tell, but chart looks good for now.

 

JOY

JOY testing the upper range of the handle of a bullish cup and handle accumulation pattern. Get long on a break of the handle to the upside and add to the position with a break of the top of the cup around 59.

 

JOE

JOE trying to round out a base off trend line support. Positive RSI divergence and MACD cross confirming the possibility of a bounce at these levels. Use the hammers low of 16.82 as a stop if long or just below this weeks low if you want to keep it on a tighter leash. Needs to break and hold above the 8 day EMA on volume to get more people interested.

 

GE

GE short setup with a break of this week’s low. Looking for a test of the 50 day EMA and possibly trend line support if we see weakness in the broader market. Rounding top makes this chart feel pretty heavy at these levels, signals short below the 21 day EMA or this weeks low.

 

FPRX

FPRX looking to test the 50 day EMA as it rounds out a base on a positive RSI divergence and MACD cross. Will admit I am a bit late to the part on this one, but looks good as long as it remains above a rising 8 day EMA.

 

FCX

FCX, with not many people liking gold miners here we see FCX trying to hold prior breakout trend line support. Is back below falling short term EMAs which does not give me a reason to jump in here, but put this one on your watch list as it could be interesting if it holds this level or tests the 100 day less than 2% below current prices.

 

FB

FB attempting to breakout of a bullish falling wedge pattern. Signal to buy was last week’s hammer just above the 100 day EMA. Looks good but needs to clear the 47.50 area to be in the clear. MACD cross in the next day or two supports higher prices.

 

DO

DO saw some call buying last week. 390 Dec 62.75 calls bought on an OI of 445. They were bought at .18 and traded as high as 40 cents on Friday but I did not get filled because I got greedy w/ my bid at .22. Should have just paid the ask when the inverse head and shoulders on the 30 minute confirmed, but nonetheless this chart looks to be bottoming along with the rest of the group. RSI divergence and MACD crossover suggest possible breakout of the falling wedge in the coming weeks. Stops well defined below trend line support around 58.50.

 

CZR

CZR flagging after breaking out of its recent range on the back of a positive RSI divergence and MACD cross. Gaming space continues to act well and looking for continuation in MGM, CZR, LVS this week.

 

DBA

DBA rounding base and positive RSI divergence as it broke above the 8 day EMA. Could see a test of the 50 day EMA around the 25 level. Not a ton of interest in playing the ETF as a whole, but could use it as a hint to check out some of the agriculture names or futures.

 

CRM

CRM could be a short setup if we retest the falling 8 day EMA. Would short any move up to the 8/50 day and look for a move back toward trend line and 100 day EMA support.

 

CMCSA

CMCSA flagging, looking for continuation this week to test the upper range of its longer term trend channel. Rising short term EMAs and prior trend line resistance as support.

 

CCG

CCG testing a breakout of a bullish falling wede. Positive RSI divergence and hammer giving a defined stop around 9.50 or below the wedge trend line support if you want to give it a longer leash.

 

BHI

BHI wedge building, play a breakout/breakdown out of this relatively narrow range. Consolidating well above the gap as it works off overbought conditions. A test of the 50 day and gap support would be healthy but risk/reward unclear until we breakout of this pattern.

 

BBY

BBY holding trend line support and looking to move into the gap above with a break above this week’s high. Rising 8 day EMA support now support. If long stops below trend line support.

 

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