Sunday, December 16, 2012

New Setups To Watch This Week

ADT: basing near highs with healthy volume patterns: breakout over 46.00 looks imminent.

CNH: Very strong volume (accumulation) on recent up days. Good momentum here so a breakout looks imminent.

EXPR: Gapped up on strong volume 2 weeks ago on earnings: its been consolidating in a BULL FLAG type formation: Looks poised to breakout soon.

LAMR: A rather unusual looking chart but thus far the action has a bullish feel to it. Could consolidate a few more days ahead of a new breakout over the 41.00 area.

MSCI: Looks to be basing in a bottoming pattern. Its trying to start a new series of HIGHER LOWS. A breakout over 30.30 could start a GAP FILL run up to 35.00.

RPM: A decent looking CUP & HANDLE pattern in RPM now. In the strong "CHEMICALS" sector. RPM looks poised to breakout thru that 29.00 resistance zone.
Other strong Chemical names to watch: LYB, POL, PPG, GRA & WLK. 

XME: This metals ETF could benefit from the rotation we have seen out of the Technology sector and into other areas of the market. XME looks to be setting up in a SYMMETRICAL triangle with a breakout 'warming up'. One more small pullback would not be bad before it attempts a 45.00 area breakout.

Note: make sure to check and re-check earnings dates on these stocks. 



1 comment:

Anonymous said...

Thanks for the kind words. Reason why it would be best or most ideal(doesn't mean it will happen) for XME to pullback a little bit, it's cause it could be just a tad overbought and also it wouldn't be bad if it backed off a little away from that resistance downtrendline to better create a better looking base in which a breakout can start frOm. If it broke out right now, given that it is a little overbought it could breakout for a couple of days and then "fail". That failure could actually be a good thing since it could create that base and help resolve that overbought condition. Like I said, that doesn't mean it will happen. Let's see how it goes. Hope this helps.

Trader Stewie

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