Here we are on the eve of a market on the verge of a breakout (we hope) in either direction. The hope is that a trend forms so that we can choose a direction. Let’s see what’s in the works for Monday:
$VZ: This on looks like it’s on the verge or just beginning a bullish move. I like a 15min entry on Monday as long as the price movement supports the bullish move. My targets are 52.37 and 53.58. Stop is at 50.14. This is about a 3:1 move at the ultimate target. Oscillators support the move, but volume has been declining. Hopefully we get some strong volume tomorrow.
$AAPL: This one looks good bearishly on a close below 428. The first target would be 416.63; ultimately we could get back to $383.00. I would not take this bearish trade unless we close strongly below 428 with supporting volume. Fortunately, oscillators are supporting the bearish move. Let’s see what Monday brings:
$DD: This one is a good candidate for a 15min short. We close well below my entry point of 53.38 on strong volume. Oscillators are supporting the bearish move. I think we are good to go down to 51.60 and then 50.90. Where you place your stop is where you will determine your Risk to Reward (RtR). As for me, I would put my stop above the 50 EMA. This gives us a RtR of only 1:1 which is unfortunate. Based on this, I would probably not take the trade, but if you are a day trader, you may be interested in this one.
$DIS: I really like this bracketed trade. Bullishly, I’d want a close above 65.15. Bearishly, I’d like a close below 61.98. Personally, I’d rather see a bullish breakout since it is the path of least resistance. Notice that volume has been decreasing, which I think will (or should) foreshadow a breakout with solid volume. Lastly, oscillators are moving bullish, hopefully supporting a bullish breakout.
$FSLR: While I’d be a little careful of a reversal, I think everything is confirming a bearish trend here. I like a bounce off of 40.90. Enter this one after the first 15min if price confirms the direction. Put your stop at least 46.50.
$HAL: I like an entry on a close above 43.70. Oscillators are starting to turn upward, but I’d like to see a close over that price level on strong volume to confirm the trend. Let’s see what happens if/when we get that close.
$JCP: We are approaching a level that I’ve been eyeing for a few weeks now. If we get a close below 17.11, I am taking this trade bearish down to a target of 15.90. Oscillators are supporting the move, but I would like to see volume support the move down. I’m definitely keeping an eye on this one.
$UA: Here is another bracketed trade set-up. We could be finding support for a bullish reversal, or we may break that support and head low. Bullishly, I like a close above 60.96 and bearishly I like a close below 58.40.
Although not posted, keep an eye on the following:
COST: Neutral, but close to choosing a direction.
NKE: breakout from triangle
That about wraps up my picks for tomorrow. I hope you guys have good luck if you choose to entertain any of these choices. Just ensure you do your own due diligence before taking any real money trades. Good night!