---------- STOCKS TO WATCH - WEDNESDAY - AUGUST 31 ---------------------
BOOM is showing a bullish engulfing pattern after a steep sell off. I don't usually go after stocks that are coming off bottoms but, there are situations that put the odds in your favor to do so. I think BOOM is in that type of set up.
Price has been in a steep decline for over 3 weeks. We now have a comfortable separation between price and the 20 day moving average. Where price had that separation to the upside before correcting, we now have it to the downside. The bullish engulfing pattern is also a wide range bar and when this type of pattern appears after a steep sell off, it is often indicating that we should should see a partial retracement.
stockcharts.com[h,a]daclyiay[d20050531,20050831][pb50!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G
Entry target $36.96. Price target $39.50. Initial stop loss $35.80.
--------------------------------------------------------------
GMR is another stock showing strength after it has had a steep sell off. Price has rallied over the past week and is now above the 20 day moving average with the last 2 trading sessions showing above average volume. We are seeing accumulation down at this price level and this sort of set up suggests we could see price rise in the coming days. Yesterday's candle is showing strength as it never traded below the open. Price continued to rise all day, forming a wide range bar on above average volume and closed near the high of the day. I will allow this one to trade for about 5 or 10 minutes before entering and if the entry is made, GMR must be up on the trading session.
stockcharts.com[h,a]daclyiay[d20050531,20050831][pb50!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G
Entry target, at least $36.45 after 5 or 10 minutes of trading. Price target $39.00. Initial stop loss $35.40.
-------------------------------------------------------------
ERTS (short). ERTS is showing a bearish wide range bar yesterday that broke below major support at the 200 day moving average. The sell off came on above average volume. This type of break down usually indicates another leg down in price with significant profit potential. I'll play it small to begin with and see how it plays out. By playing small, I mean I will go after a modest price target and then adjust later to expand it if the price continues to show weakness.
stockcharts.com[h,a]daclyiay[d20050531,20050831][pb50!b200!f][vc60][iut!Lah12,26,9!Lc20]&pref=G
Entry target $56.04. Price target $53.35. Initial stop loss $57.10.
dabum |
