October 20, 2017

Charts to Watch

Let’s start tonight with the McClellan Oscillator and a look at the reading from yesterday’s close.  We see that a -100 reading is very uncommon but can lead to snap back rallies.  What has to be seen is whether that extreme level leads to a more sustained bottom or like we saw in June will there be multiple extreme readings before a more sustained bottom occurs.

Arch Coal (ACI): After a strong rally this stock has held initial support  on the pullback.  I will be watching to see if the stock can continue to consolidate on low volume to set-up a next leg higher.

First Solar (FSLR): Has pulled back to the 200 Day SMA and on the first test has held  providing a clear level to trade against.  If the 200 day is lost then I will be watching $35, $33 and $30 as next potential support areas.

Apache (APA):  Concerns over unrest in Egypt has sent this stock, which has substantial business dealings in the area, lower.  While this pullback is not what I was expecting or looking to see from the stock, I think there is still opportunity if it can build on today’s action.

Apple (AAPL): This much maligned tech stock has had a run of positive news and sentiment of late which has helped propel it higher since double bottoming in late June.  AAPL pulled back today after filling an upside gap from earlier in the year.  This would be a natural spot to stop especially since the name did not spend too much time below the 200 day SMA.  A low volume consolidation could set-up another leg higher.

Teradata (TDC): Looking for this stock to find support on this pullback with the 50 day SMA catching up and the MA’s getting “in-line” to prepare for a next move higher targeting the 70+ region.

Citrix (CXTS):  Much like TDC this has had a nice move higher and now starting to pullback.  Is currently resting on a back-test of a long term trend line and ideally that would hold as support but if lost, as long as the MA’s which are currently pinching hold then this name could have more upside.  Possibly even to $90 over time.

Trina Solar (TSL): A lower priced solar name which was upgraded to Buy today at Maxim with a $9.50 price target which coincides with an upside gap.  The technicals and fundamentals may be working together on this one.

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