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 have had two good setups. The... Continue Reading →

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 exited UAUA, for a gain, but... Continue Reading →

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 list of stocks this week, focusing more... Continue Reading →

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 tomorrow on early morning weakness.

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