Technical Trades Anyone

[BlueWolf]

Anybody interested in shorter to mid term swing plays based on charting technicals?

[BlueWolf]

I should have posted this sooner, but it may still be valid for an entry. Take a look at TTD. It did a gap fill then overextended and reversed yesterday (that was the buy signal). Still looks like an island bottom to me. There is some resistance above, especially at 58, but that’s still enough to give a nice 10% to 15% bounce. It was worth a play and might still be with a trailing stop above 10% with a conservative stop below today’s low and a more liberal stop somewhere around 45 (this makes risk/reward closer to 1:1). If you’re super conservative, you could sit it out and take the chance that this will fill today’s gap and look for an entry then (I always wait for a reversal before entering). No doubt yesterday was the time to enter, but the gap up today made the possibility of a sustained reversal look even better so I thought I’d post it for what it’s worth. I’d post the chart if I could figure out how to upload a picture from iOS. If these kinds of trades interest you, let me know, and I will share more ideas. I am watching or have entered several now.

[Louetta]

I should have posted this sooner, but it may still be valid for an entry. Take a look at TTD. It did a gap fill then overextended and reversed yesterday (that was the buy signal). Still looks like an island bottom to me. There is some resistance above, especially at 58, but that’s still enough to give a nice 10% to 15% bounce. It was worth a play and might still be with a trailing stop above 10% with a conservative stop below today’s low and a more liberal stop somewhere around 45 (this makes risk/reward closer to 1:1). If you’re super conservative, you could sit it out and take the chance that this will fill today’s gap and look for an entry then (I always wait for a reversal before entering). No doubt yesterday was the time to enter, but the gap up today made the possibility of a sustained reversal look even better so I thought I’d post it for what it’s worth. I’d post the chart if I could figure out how to upload a picture from iOS. If these kinds of trades interest you, let me know, and I will share more ideas. I am watching or have entered several now.

Sounds interesting, like to see more. Nice to see original work.

[BlueWolf]

Thanks. I wouldn’t enter it now. It did fill Thursday’s gap, as I suspected it might. If it reverses from here, however, I think it’s a good entry. You could stop out just under Wednesday’s low for a good risk/reward ratio (about 4:1 with a conservative $56 target). It’s also cheap enough to where you could hedge it with some covered calls or a put. Just an idea for technical traders. Also, the financial outlook going forward is not bad, or I wouldn’t trade it long. I’m hesitant to see it as a long term hold until it clears out the overhead resistance around 58 to 60. The nice thing about an entry here, however, is that you could be sitting on a 15% gain as it heads into resistence, giving you a cushion if you do want to chance a longer term hold. Their last quarter and guidance were very good. Gotta wait for the reversal confirmation now, though. I love these kinds of setups when they happen.

[Louetta]

Good thorough analysis.

[sekto]

Arriving a bit late to this one... Looks like it's retraced back to the price range before the gap up, closing at 47.68 on Friday - How does that change the play here?

[BlueWolf]

This is looking like an entry here. You could wait for the bar to finish today to make sure it is signaling a reversal, but an aggressive trader could enter now especially given that it gapped up at the open today. You could stop below the prior pivot around 45.77 (always give some room), or, if you are more patient and willing to take a lower risk/reward, you could stop below the Feb pivot at 40.7.

[BlueWolf]

I have another one I’m watching here, ICPT. It’s a pharmaceutical, so technical training is always more risky because they are so news driven. What interests me is the huge buying that went on two days ago and the fact that it looks like it’s starting to base sideways near the high of that big bar up. I think I’m going to watch it to see if it bases a little more, but there’s very little resistance above this so it could pop suddenly if there’s another wave of buying.

[BlueWolf]

Ooh. Bearish engulfing bar developing on ICPT. Definitely a warning to sit on the sidelines for now.

[BlueWolf]

It was a little aggressive, but I took a 1/2 position in ICPT this morning. The bearish engulfing bar from yesterday gave me pause, but the gap up today was a good sign and the spread on this thing is huge, so you have to be a little careful when interpreting the close. If it moves in my favor, I may add another 1/2 position. If it break below the base, I’m out. This market is very whippy and news driven. That’s why it’s important to be disciplined on technical trades.