August 18, 2017

Utilities (XLU)

Charts-of-Interest

After making a new intraday high on 1/27/15,  the Utilities (XLU) peaked and started a sharp decline which finally bottomed after losing roughly 10% and targeting a key support region which coincides with other previous support/resistance levels and main moving averages. If we look at the 60 minute chart we see that as price moved into this support region, it started to build strong positive divergence on the intraday chart which can be a tell that support will hold — at least initially. While the XLU has moved off the lows, we do not think it is out of the…

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Groupon (GRPN)

Charts-of-Interest

Groupon’s (GRPN) gap down on earnings has so far found support a the 50% retracement level from the 11/13/12 lows to the 9/19/13 highs. Ideally we would normally like to see a more of an orderly decline along with some positive divergence but gaps can make that type of set-up difficult.  We do currently view the pullback in GRPN’s shares as an opportunity but would only be interested in trades where there was a defined risk level.  That is what we now have with the 50% Fib which held as support. We believe trader’s can now use pullbacks for long…

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Charts to Watch

Charts-of-Interest

Occidental Petroleum (OXY):  After a nice trade off the 200 day SMA, OXY climbed its way higher to the longer term trend line finding initial resistance as would be expected.  Any pulbacks might be the last opportunity in this name before it looks to be on a trek to 100+.   Cliffs Natural Resources (CLF): Has been consolidating well after finally putting in what looks to be a bottom.  With the now upward sloping 50 day SMA as support and the downward sloping 200 day as resistance the battle lines are drawn and the action is tightening.  Breakout above the…

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Charts to Watch

Charts-of-Interest

Apache (APA): The rally has continued to the 200 day SMA which would be expected first resistance.  Now watch for a pullback and how it acts to see if the bottom is in of if the stock has more work to do.  The MACD might be hinting to more work. Arch Coal (ACI):  Consolidating well and holding the recent gains well.  More action like this and it looks like there will be a strong base for a move toward the 200 day SMA. Apple (AAPL):  Continues to consolidate but without much downside action.  Watch above $514 with volume. Devon Energy (DVN):…

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Charts to Watch

Charts-of-Interest

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…

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Charts to Watch

Charts-of-Interest

What ended up being a tough week for the market left many names I was following pulling back m0re than I would have desired but still intact.  While I believe it is always prudent to be looking at stocks from the short side, the longer term trend is still higher.  I think that it is VERY likely that we see the markets continue to consolidate and even lose ground but I think people tend to lose tract of their long ideas during these times and this is when you want to be watching them as if they hold in during…

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Charts to Watch

Charts-of-Interest

Today was a tough day for the Bulls but there are still some charts on the long side which interest me.  They may not all be ready to go here and now but represent a mix of sectors and situations. Expeditors International (EXPD) could be setting up a longer term trade opportunity but first I want to see the 200 day SMA hold as support. Amgen (AMGN) acts well in what looks to be a longer consolidation pattern.   Abercrombie & Fitch (ANF)  Potential Inverse Head & Shoulders pattern but wants to see 200 Day SMA hold Apache (APA) Still…

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Charts to Watch

Charts-of-Interest

Apple (AAPL) found initial resistance at the 200 day SMA which is to be expected on the first touch after so long but I would be watching the consolidation on this one for another trade opportunity.  Also watch the MACD to see if it can recycle. Arch Coal (ACI) pushed nicely into the 50 day SMA today.  This will be key to watch if it can get and stay above.  A move on strong volume might be further evidence that a short term bottom is in and could end up being a much longer term bottom.  I would use the…

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Baxter (BAX)

Upgrades - Downgrades image

Baxter Intl (BAX) has not been on an amazing tear this year and is vastly underperforming the S&P 500 wit a mere 9.5% gain YTD vs the broad market’s 20% but Goldman Sachs thinks that is all about to change. Today Goldman Reinstated BAX with a Conviction Buy rating and an $86 price target which using today’s closing price of $71.64 means that Goldman sees a roughly 20% price increase coming in BAX.  Being that it was added to the Conviction Buy rating, as I have noted before, this makes me believe Goldman thinks the gains should be coming sooner…

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Occidental Petroleum (OXY)

Charts-of-Interest

Occidental Petroleum (OXY) looks to be crafting a long consolidation pattern which should be nearing completion.  In the shorter term it is possible that OXY might drop into the noted gray circle area but as long as it remains above the 200 day SMA and the higher uptrend line I will remain positive on the name. OXY should look to target much higher on a break first looking to fill the upside gap and then possibly challenge the 2012 highs.

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