Paul J Singh

Category: bottoming setup

  • Chart of the day: GoPro

    Today’s stock chart of the day GoPro. GPRO is a recent IPO that is riding an earnings catalyst after bottoming out in early March. It is now breaking out and stalling at the newly formed 200 day moving average resistance level. A break of this level could set the stock…

  • Chart of the day: GTLS

    We have been swing trading the bottoming formation in commodities since December and now the formation has matured to the start of a possible trend move. GTLS is a good example of a commodity stock ready to start a momentum trend.  It looks to have put in a bottom formation…

  • The Next Explosive Bottoming Formation: Steel

    Back in December we successfully identified and swing traded the bottoming formation in gold miners, followed by energy/oil/gas in early January.  Often when one or two sectors show this formation, other related sectors will follow. Steel is showing signs that it is the next bottoming formation candidate.  This sector does not…

  • How to identify explosive bottom formation breakouts

    Every momentum stock starts from a bottom formation breakout.  Back in November we started talking about Gold Miners as a potential bottom formation trade.   Study this chart carefully and notice the positive volume as gold miners put in a bottom formation, the remount of the 50 dma and successful…

  • How to trade the gold miner stock bottom formation breakout

    Swing Traders must be vigilant about sector rotation and money flow.  Back in early December we started talking about gold miners as a bottom play in the Trade Report.  Notice that as gold miners were at lows, positive volume outweighed negative.  This was a clear signal that “big money” players…

  • Stock Chart of the Day: ZU

    Trade Report focus list stock ZU broke out of a post moving average remount breakout range on strong volume. This stock has been showing signs of accumulation even before remounting the moving average. This underlying volume support should help propel the stock to recent highs around $42.  I will look…

  • The Low Risk SKF Trade Setup

    SKF is slighly bouncing off support lows. Support could break, but the setup still offers a good risk ratio and a trade that is easily managed. Enter as close to support as possible, place stop below support lows, with a target near resistance levels.

  • Monday’s Game Plan and Free Trade Report

    I am offering today’s Trade Report, which features my plan for Monday and the coming week, free to blog readers today. Enjoy! January 5, 2008 Market Notes The market is overbought. I’ll get back to that, but first let’s take a look at the overall picture. The market (via SPY-SSO)…

  • Bullish Setup in Financials

    A nice bottom pattern is forming in financial stocks and the leveraged ETF UYG.  Trade management is made easy with a stop placed below Friday’s close and the target near the recent high.  I may be tomorrow on weakness.

  • Trade: TXI

    I bought 300 shares of TXI at $31.50, as my limit buy order was hit this morning. This is a manageable low risk trade in a good setup that offers strong price and volume support. The setup is both a bottoming and breakout-pullback setup. If the market tanks, my stop…

  • Bullish Chart: CPO

    CPO has formed a nice bottom formation. Price has broke out over price and moving average resistance, RSI has formed a positive divergence and volume shows strong accumulation. I like it on a pullback to support.

  • Holding the Lows

    The lows are holding. My game plan is to hold my current positions with stops in place below the lows. As long as the lows hold, we are still within the “bottoming range” formation and just experiencing a retest. The chart below is not annotated, but note the RSI divergence.

  • Trade Setup: KSS

    I have been following KSS for quite some time in the Trade Report. Retail, and KSS specifically, caught my eye as a bottom accumulation setup in early to mid July. The volume on the bounce gave clues that the bounce could lead to a continuation move. Since that time, we…

  • Airlines

    I have been saying almost non-stop over the past couple of weeks that airlines are in a short to intermediate term bottoming formation!!! Take a look at the capitulation day in mid-July, followed by that purdy volume pattern. Does it get any better than that? As noted earlier today, I…

  • Sectors with Bottom Formations

    No matter how bearish your fundamental thesis is on the following sectors, it’s hard to deny that price and volume are showing bottoming formations in financials, casinos and real estate. Here is what I wrote about these sectors in the Trade Report to start the week: I have narrowed my…

  • CAL setup

    I mentioned earlier today that I entered to airline stocks. Both CAL and UAUA have similar setups. CAL shows a classic bottoming formation. Note the volume pattern. Entry close to the moving average is ideal, with the upside target at the first sign of strong resistance. I may buy more…