Shares of Freeport McMoran Copper and Gold (FCX) have been holding in an area of support that includes the 50% retracement level of the 2013 high and 2014 low, a four month horizontal resistance-turned-support line, and the 50 and 200 day moving averages. They touched the 62% retracement level in today’s session, and a strong… Read More »
Here are some classic items you might remember adjusted for inflation.
Google (GOOGL) retraced back to the 62% retracement level of its March high/May low last week, but was unable to sustain the upward momentum. Today it is back down near the 38% retracement level on a weak close. If the stock does not find some support in the area of the lower Fibonacci support level… Read More »
The specialty chemical company Ferro corporation (FOE) has been trading above the $12.00 level for the last six months. It is breaking above a downtrend line and its 50 day moving average, taking the RSI and the MacD above their centerlines. It may be that it trades in a range, below $13.25 resistance and the… Read More »
Shares of Facebook (FB) have been trading in a horizontal channel for two months. Last month they also held above a long-term rising support line that intersected with the channel. The interior consolidation zone defined by channel resistance and the uptrend line includes the 50 day moving average, and it is contracting and squeezing the… Read More »
A large engulfing candle formed yesterday on the iShares High Yield Corporate Bond Fund (HYG) daily chart. Its range encompasses the previous week’s trading range, and the candle is a bearish reversal indication. The RSI is breaking down from an overbought condition, and the Money Flow Index, a volume-weighted measure of relative strength, is crossing… Read More »
Here’s a few more potential breakout trades. Embraer Aircraft (ERJ) broke strongly above its 50 day moving average late last month and now is breaking out of a large symmetrical triangle pattern. Jarden (JAH) is being squeezed between resistance at $58.00 and a rising 200 day moving average. Abercrombie and Fitch (ANF) is trading around… Read More »
Waste Connection (WCN) broke above the neckline of an inverse head and shoulders pattern at the end of April, and then began trading in a horizontal channel. Last week it broke above channel resistance and today is seeing follow-through price action. Wyndham Worldwide (WYN) is breaking out a well defined symmetrical triangle on good volume… Read More »
Every trader carries some emotional baggage that can influence their strategies. Follow the charts and not your heart.