---------- STOCKS TO WATCH - MONDAY - DECEMBER 6 ----------------
A lot of energy stocks are showing up in my scans. I can't play them all and if you pick one, the odds are that the chart is setting up nicely for a buy setup or has already confirmed a buy. My RIG position did not trigger on Friday and I will keep the trade open for Monday. KMI did trigger on Friday, as did several others and the indicators are suggesting a continuation of that move.
I will add one more energy stock to the pot for Monday ... GDP.
GDP had recently reached a new price high and has suffered a 3 day drop into support at the 20 and 50 day moving averages. This buy setup is playable 100% of the time. This time will be no different. Studies have shown this buy setup is successful better than 80% of the time.
GDP dropped below the 20 and 50 day moving averages on Friday and the bulls came to the rescue, gaining back all of the ground they had lost. A Doji candlestick pattern, after a 3 day drop, into support is a bullish indicator.
stockcharts.com[h,a]daclyiay[d20040805,20041205][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
Entry target $14.20. Price target $16.55. Initial stop loss $13.50.
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AAPL may setup Monday, if not, then maybe Tuesday. I would like to see the price come down and test the 20 day moving average first but, if it doesn't, then it's a buy at $65.10.
I think AAPL is a perfect example of a 3-5 bar drop buying setup off a stock in an uptrend, an uptrend being a series of higher highs and higher lows.
What's even better is the risk to reward setup.
It the pattern breaks down after entry and drops below the 20 day moving average, it's a sell immediately.
stockcharts.com[h,a]daclyiay[d20040805,20041205][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
Entry target $65.10 on Monday only. Price target $69.50. Stop loss $61.75 on Monday only, if the trade triggers. Adjustments will be made for Tuesday if the trade doesn't trigger on Monday.
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DRI is a continuation setup. It is in a strong uptrend and has been consolidating over the past week into a rising 20 day moving average. This is a bullish indicator.
Also note the Chaikin Money Flow indicator. This is saying that systematic buying is going on. DRI looks like it's getting ready to pop to the upside.
stockcharts.com[h,a]daclyiay[d20040805,20041205][pb20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
Entry target $27.55. Price target $29.00. Stop loss $26.95.
dabum |
