I entered DIG today. The stock has broke out over a W formation and the 50 day moving average. Another positive is the positive RSI divergence.An entry here around $34.80, with a stop at $33.80 (under suppport) and target at the old high around $38 offers a nice 3:1 reward to risk ratio.The stock is... Continue Reading →
Apple is a Tough Read
If it were any other stock, I'd take a stab at shorting AAPL right here, right now. Technically, it shows signs of losing steam and is a good "pioneer short trade."We see negative divergences in both RSI and Stochastics. Price is making new highs while the two indicators are not. On top of that, volume... Continue Reading →
The Short Apple Setup
AAPL is showing a negative divergence and is extremely extended at new highs. I am short with a tight stop.
I took a position in USD today. Price has held up well and is at a strong support level. Notice the positive divergence in OBV compared to price.
There's a lot to like about the DIG chart:1. Postive RSI divergence2. Successful test of bottom support3. Long tail price bar at support4. Oversold stochastic turning up5. Strong obv and volume action
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.
Take a look at the DUG chart below. Notice that RSI has made a higher low while price action has made a lower low. The ETF, which is short oil and gas, is also extremely oversold. I took a small position this morning.
Today’s Trade: EWZ
I bought 200 shares of EWZ, the Brazil ETF, at $91.61.Setup: Bullish Flag post Breakout-Breakout Pullback. The stock pulled back to the top of the breakout level, which is also where it broke resistance. Recent volume pattern is strong and obv has increased as stock has pulled back from breakout. As a plus, all things... Continue Reading →
Are Steel Stocks Ready to Rollover?
It has not been wise betting against steel stocks, but there may be a low risk short setup forming. Let's take a look at the chart of AKS, which is representative of many steel stocks (MTL, ZEUS, X).The first thing that concerns me is that RSI has made a lower high while price reached new... Continue Reading →
Do I Have the Guts to Buy Financials?
I'm scared as hell to buy a financial, even with a small position size. However, if I didn't know the name of the company behind this chart (Morgain Stanley), I would be buying. We have price breakout over the 50 day moving average after the stock printed a bottoming long tail on heavy volume a... Continue Reading →