The iShares Russell 2000 ETF (IWM) formed a large bearish engulfing candle in Monday’s session that encompassed the previous two day range. It has rallied over 16% from its low early this month to its high last week and is technically overbought. The relative strength index reflects the overbought condition and the percentage volume oscillator, a MacD representation of volume, has made a bullish crossover and is below its center line. The small-cap stocks have led the broader market in the past and their price and volume action should be monitored carefully.
Monthly Archives: November 2016
Pandora Poised for A Potential Short Covering Rally
Shares of Pandora (P) may be setting up for a short covering rally. Here’s my take on the chart published on TheStreet this morning.
Four Cup and Handle Breakout Charts
These four stocks have formed technical cup-and-handle patterns on their daily charts and are testing their rim line resistance levels.
Catching Up On Previous Posts
These are my articles published on the TheStreet last week:
How to Trade Four Stocks Feeling a Volatility Squeeze
Starbucks May Have to Pull Back Before Closing the Gap
Yelp Breakout Projects a Major Move Higher
FANG Stocks Headed for Another Leg Lower?
The trend may not be a friend of this group of stocks, which includes Facebook (FB), Amazon (AMZN), Netflix (NFLX), and Alphabet(GOOGL). Here’s my take on their daily charts published this morning on TheStreet.
The Dollar Index Fund — Major Weekly Breakout
The strength in the dollar recently has taken shares of the Power Shares US Dollar Bullish Index Fund (UUP) through long term technical resistance.
A large two year triangle formed on the weekly chart and that downtrend line has been taken out in trading this week. The break out could be seen coming on the daily chart as the fund price compressed in smaller fractal versions of the larger triangle and then broke out in sequence from those iterations. The technical indications on the weekly chart are all positive and the pattern price projection, if achieved, targets a major upside objective.
Trading a PayPal Bounce or Breakdown
S&P 500 – A Repeat of the June Rally and Reverse?
The S&P 500 index bounced off its June low at 1990 this year then rallied 100 points over the next two months to the 2190 level. After a month long attempt to break 2190 resistance it pulled back in a declining channel pattern to the 200 day moving average, and then rallied sharply this month again, breaking above the channel downtrend line and re-entering the 2190 area zone of resistance.
This latest move has no doubt expended a lot of energy and may require another period of sideways consolidation in the resistance zone, but one particularly positive technical sign is the reading on the Chaikin money flow indicator. It has crossed back above its declining 21 period signal average and its center line, reflecting renewed buying interest.
Wal-Mart Forms a Strong Technical Base Ahead of Earnings
The stock has defined a zone of support that could act as a platform or a barrier after the company reports earnings. Here’s a link to my article published on TheStreet this morning.
Buy the Lennox Stock Breakout
Lennox (LII) has formed a base above key support and is ready to move higher. Here’s my take on the chart published on TheStreet this morning.