Bullish Breakout Opportunity for You in ODFL

Apr 20, 2015: 1:23 PM CST

Traders are carefully watching a critical level in Old Dominion Freight (ODFL) which is setting up a possible breakout buy opportunity.

Let’s highlight this level, note the entries and targets, and possible play setting up right here right now.

Here’s the Weekly Chart for the Structure and Trend:

The main idea here is that the trend is up, ODFL shares are in a clear uptrend, and price is currently challenging the underside of the (flat) 20 week EMA just under $75.00 per share.

Note how price repeatedly bounce up off the rising 20 week EMA and then lately off the 50 week EMA.

We’ll see shortly that the $75.00 level is a key pivot where a bullish “open air” trading pathway opens above it while a bearish/cautious pathway exists on a possible movement down from $75.00. Continue Reading…

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Bounce Back Bullish Market Update and Scan for April 20

Apr 20, 2015: 12:45 PM CST

And we’re back!  Back to the highs of Friday’s activity that is – and should we be surprised?

Price traded down to a key support level, formed positive divergences and power-rallied back higher this morning, almost as if nothing at all happened Friday.

This is a pattern of the current undeniable bull market that has repeated many times.

Let’s dive inside action and note key levels and the trending stocks of the bullish day:

Be sure to brush up on the “S&P 500 Range Planning” post for a broader perspective.

More divergences, more reversals off higher timeframe support or resistance levels.

Today’s session took the price back above 2,100 into the mini-range between 2,100 and 2,105.

The market remains super-bullish above 2,105 and cautious on a break back under 2,100.

Note the negative divergences that suggest a possible turn lower back under 2,100 but wait for the market to tip its hand before jumping back to the bearish side of this ongoing bull market.

Continue Reading…

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Yes Indeed the Trading Range Continues: What You Need to Know

Apr 17, 2015: 11:31 AM CST

Given that the S&P 500 remains in a broader trading range pattern, today’s sharp downside action is precisely what was expecting from a charting standpoint under the “Range Continuation” scenario.

Let’s update our levels – which are exactly the same – and put the price action in context as we plan the next target.

Start with the update earlier in the week which clearly defined the trading range and plans.

The pure price chart above highlights the range itself – 2,045/2,050 to 2,110 – and the midpoint at 2,080.

As simple as it sounds, playing “ping pong” reversal trades off these levels has been an effective short-term strategy.

Taking it one step further, we can see the positive and negative momentum divergences that assisted in forecasting a likely reversal away from these support or resistance boundary levels.

A lengthy negative divergence “undercut” the rally and mid-day Double Top into 2,110 and today showcases the aftermath as price once again falls sharply and decisively from this level.

The initial target – the Midpoint – has already been achieved so be sure to monitor this level for a bullish bounce.

Otherwise, a trigger-break down under 2,080 suggests sellers will dominate the market and thus price could fall once again toward the 2,050 level. Continue Reading…

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Quadruple Timeframing the Netflix NFLX Surge

Apr 16, 2015: 2:23 PM CST

Netflix (NFLX) broke powerfully higher overnight on earnings, continuing a multi-year uptrend and confirming the concept of “what is strong tends to get stronger.”

Let’s view the Monthly, Weekly, and now Daily Chart to highlight where price has come and where it might be going now.

As a bonus, we’ll step inside today’s intraday action for a quick lesson on day trading power-trending stocks.

We’ll begin with the Monthly and Weekly Perspectives to set the stage:

The monthly chart highlights the initial IPO, sell-off through late 2004, lackluster performance from 2005 to 2008 which gave way to the stellar rally from 2009 to the $300 peak mid-2011.

Missteps from the company in 2011 sent investors fleeing, collapsing the price from $300 toward $50 again.

Not to be outdone, the company regrouped and we have the current major bull market rally that skyrocketed price in a “ten-bagger” from the $50 level to the current $550 per share “shoot the moon” area. Continue Reading…

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April 16 Daily Stock Market Update and Scan

Apr 16, 2015: 1:00 PM CST

This week has been “Divergence Week” where intraday reversals occurred on clear divergences.

It was logical to expect another reversal down against 2,110 – from divergences – and we did see the 10 point move down into support, from which today’s reversal occurred.

Let’s dive inside action and note key levels and the trending stocks of the bullish day:

Be sure to brush up on the “S&P 500 Range Planning” post for a broader perspective.

Note the negative TICK Divergence that occurred near noon PST with new price highs (and lower TICK highs) and the subsequent retracement down from 2,110.

The downside target was achieved this morning into the 38.2% Fibonacci Level and 2,100 clear “Round Number” support along with – you guessed it – another positive Market Internal divergence.

For now, we’re seeing a logical rally back toward the highs off support and we’ll frame today’s trades from that.

Continue Reading…

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