The McClellan Oscillator bounced this week from Oversold territory of -62 to close the week around -28. I think we could see one more downswing from here in the short term, but overall we are setting up for a nice push higher. There is still a negative bias since we are below 0 and are pointed down due to Friday's action. Onto the setups I like for next week...
It looks like it's time to revisit Facebook Inc. due to it's relative strength on Friday. The daily chart is showing a nice setup that looks like it wants to push to new all time highs. $FB recently tested it's 50 day simple moving average and bounced off of this support beautifully. All indicators looked prepped for a breakout and we saw very heavy volume on Friday. I like $FB above $78.30 with a fairly tight stop at $75.50.
The Container Store broke out of a nice wedge pattern on high volume Friday. $TCS has a huge gap to fill up to $27. I like $TCS to continue the momentum if it can clear $24. Stop placed at $22.50.
Energy Transfer Equity, LP has a very bullish looking chart. $ETE looks to have found some near term support right below it's 21 day exponential moving average. $ETE was up about 2% on Friday on high volume. MACD & Stochastics look very bullish here, and I will start an entry at $62.80 (Friday's High of the Day) with hopes for a breakout above $63.50 to new all time highs. If it can breakout above $63.50, my first target would be $67.
Garmin Ltd. pierced it's 200 day simple moving average on Friday in convincing fashion (on heavy volume which is very bearish). $GRMN looks like it will test the $50 dollar area of support again. If it dips below near term support, we could see a big breakdown. I will sell this on a break of $52.04 (Friday's Low of the Day) with a stop placed at $54.30.
Priceline Inc. has been acting very poorly over the last month and a half. $PCLN formed a dark cloud cover on it's daily chart Friday. There daily chart also looks like it might have formed a bear flag with RSI pointing back down. I will sell this if it breaks below $1185 with a stop placed right above the 200 simple moving average around $1225. In others words, I'm about to short the Shat :).
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Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in NC Investor Blog is often opinionated and should be considered for informational purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence.
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