--------- STOCKS TO WATCH - FRIDAY - FEBRUARY 18 -----------------
WFR is turning up on huge volume. MACD has turned positive and money flows have shown a dramatic reversal over the last few trading sessions. Money flows have gone from minus 42 to just about even in a matter of days. This is very bullish.
The price managed to close above the 50 day moving average. The price has reversed to the upside on above average volume at a time when the overall market has shown weakness. This one looks like it wants to go higher.
stockcharts.com[h,a]daclyiay[d20041117,20050217][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
Entry target $12.22. Price target $13.70. Initial stop loss $11.75.
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MIPS has been in a Stage 2 uptrend. The 20 day moving average is above the 50 and there is a wide separation between the two. This confirms a strong uptrend.
After achieving a new high, the price has pulled back to the 20 day moving average which has served as a strong level of support throughout MIPS' rise.
MACD and money flows have dropped off but I think they are merely confirming the recent price pull back. If the price is to take out the recent high, this is where you would expect the move to ignite. If not, your stop is set just below the 20 dma, providing good downside protection.
stockcharts.com[h,a]daclyiay[d20041117,20050217][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
Entry level $12.52. Price target $13.50. Initial stop loss $12.16.
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ARRS has formed a 3 bar drop off a relatively recent price high. The pull back has come down to the 50 day moving average where we should see a short term reversal.
MACD is looking bullish and money flows have edged to the upside from being deeply negative. This is very positive money flow action and would like to see it continue.
The pull back has come on light volume which is always encouraging.
stockcharts.com[h,a]daclyiay[d20041117,20050217][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
Entry target $6.60. Price target $7.50. Initial stop loss $6.35.
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My scans are showing 243 bearish engulfing patterns alone. This is an unusual amount of bearish patterns. This would indicate the market is due for a technical bounce or we have some problems looking forward. I didn't look at all the charts but I did pick a couple to short, just in case the market continues to look weak.
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GILD (short). GILD has been in a downtrend. The 20 day moving average is below the 50 and there is a wide separation between the two. With this pattern, the first test of resistance at the 50 day moving average is shortable nearly 100% of the time.
In addition to this, we see a Doji candlestick at resistance, at a time when the stochastic is overbought after a multiday rally. If the price opens down in the morning, I think the momentum will start to build to the downside and test the recent lows.
stockcharts.com[h,a]daclyiay[d20041117,20050217][pb50!b20!f][vc60][iut!Lah10,30,5!Lp12,3,3]&pref=G
Entry target $33.35. Price target $31.00. Initial stop loss $34.18.
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ISIL (short). ISIL has failed on 4 attempts to break out above the 200 day moving average. If it takes out yesterday's low of the day, I look for further dowside.
Stochastic is overbought at a time when price can't break out. This is bearish. And, MACD is showing a weakening trend.
stockcharts.com[h,a]daclyiay[d20041117,20050217][pb50!b200!f][vc60][iut!Lah10,30,5!Lp12,3,3]&pref=G
Entry target $16.50. Price target $15.50. Initial stop loss $16.90.
dabum |
