The Top Three Bullishly Trending Stocks above 200 day SMA Scan

Jul 21, 2017: 12:02 PM CST

When swing trading, we like scanning for “strong stocks getting stronger.”

A simple, effective method for doing so is to identify stocks extended above their rising 200 day Simple Moving Average.

Let’s highlight the Top Three Trending Stocks right now under this metric:

Bullish Stock Scan Trending Above 200 day SMA NVDA

Bullish Stock Scan Trending Above 200 day SMA NRG

Bullish Stock Scan Trending Above 200 day SMA VRTX

Strongly trending stock NVIDIA (NVDA) tops our list of stocks extended (by percentage) above the 200 day SMA.

The last time we discussed this stock on the blog was April 18th, highlighting (correctly) the critical bullish support level.

Next up is NRG Energy (NRG) surging higher in a gap-up situation as the uptrend continues.

The third strongly trending stock of the day is Vertex Pharma (VRTX), a name that’s been popular on social media in part due to its uptrend and most recently with the gap-up above $160 per share.

Use these as starting points for additional research and trade identification – including our favorite retracement strategies – for future opportunities into these “strong stocks getting stronger.” Continue Reading…

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General Electric GE Crushes to New Lows in Trendline Arc Pattern

Jul 21, 2017: 11:48 AM CST

General Electric continues to struggle with a breakdown to new swing lows this morning.

We’ve been discussing this “Rounded Arc” pattern as seen from our July 10 post “GE Struggles with Weekly Arc Lower.

Today, we’re seeing a resolution of that arc with continued downward momentum in price.

Here’s the latest developments:

GE General Electric Trendline Arc New Lows

This morning price gapped down to the $25.00 per share pivot level before bouncing higher toward $26.00 per share mid-day.

Just like Goldman Sachs earlier this week (as we updated), GE beat Wall Street estimates on today’s earnings but it didn’t matter as shares collapsed – that’s still one of the most frustrating things to deal with as traders.

Yet here we are with the chart and technical analysis superior to fundamentals and the complex math that goes into calculating them.

Price simply completed a bear flag retracement pattern into the falling 20 day EMA and traded – gapped – down to the lower falling trendline.

Here’s a zoom-in of that retracement trade and the collapse to the chart-based trendline target: Continue Reading…

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After Impressive Rally MSFT Hanging Out at the Highs

Jul 20, 2017: 11:17 AM CST

You may not see Microsft (MSFT) as a great candidate for day trading, but swing traders certainly have been using it with good results.

Let’s chart the recent impressive rally into the current reversal candle “hanging out” at the highs:

Microsoft MSFT Stock Price

Microsoft (MSFT) shares rallied 11 straight days higher including today from the $68.00 lower support pivot through the prior high toward the current $74.00 per share level.

That’s impressive by any standards.

Yet here we are, once again with (so far) a reversal candle above the upper Bollinger Band.

It’s a similar situation to what we saw at the beginning of June ahead of a steep yet normal/expected retracement lower after another impressive straight-up rally.

If you’re aggressive, you may want to play defensively here to try to trade (fade) the pullback from the high.

Otherwise, 11 straight up days can become 12… then 13… and yes it can happen.

The odds are strongly against it – making a valid “fade trade” – but it could happen.

Either way, the next swing should be interesting – frame it in terms of the “departure” from $74.00 per share. Continue Reading…

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Creeper Emini Trend to New Highs Revealed July 20

Jul 20, 2017: 10:44 AM CST

The bulls charge forward, carving out a new all-time high this morning.

This afternoon doesn’t look so bullish – but let’s update our chart and note what’s new.

Here’s today’s updated Emini (@ES) trading levels for your trades:

Bull bull bull!  Breakout breakout breakout!

A “Creeper Trend” emerged after July 12th’s trendline breakout.

We call this a “Positive Feedback Loop” where higher prices CAUSE higher prices – namely from buyers buying or adding to existing positions, playing off greed, and short-sellers/bears buying-to-cover losing positions, playing off fears.

Greed and fear – it’s the core of what drives the market.  Making a quick profit or avoiding a loss.

So here we are, extending a rally higher through “Open air” in an ongoing intraday uptrend in the context – as I keep repeating to members – of a triple timeframe bull market.

Watch your rising moving averages in the chart above and flip cautious if price breaks beneath them soon or remain pro-trend bullish while price creeps above them.

If you’re new to this style of simple level trading, welcome aboard and keep checking back or get more details beyond just the @ES (stock scans, money flow, education) by becoming a member!

Continue Reading…

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Critical Support Test Challenge for Goldman Sachs GS

Jul 19, 2017: 8:43 AM CST

Goldman Sachs (GS) reported positive earnings that beat expectations yesterday… yet the stock fell.

Shares now face a critical “Make or Break” support challenge at a key confluence level.

What is it and what’s the short-term trade from here?  Let’s plan it:

Goldman Sachs GS Flag Support

As a long-term trader, it still frustrates me to no end to see a stock beat earnings yet collapse lower.

That’s one reason I focus so much of my trading on technical analysis – charts make sense!

Anyway, earnings aside, the chart reveals Goldman Sachs (GS) shares to be at a critical confluence support pivot.

We’re specifically seeing the overlap of the rising 200 day SMA (red) with the lower rising “flag” trendline of a rising parallel trendline channel (yellow highlight).

Ideally shares bounce here and trade the bullish pathway toward the $230 level again.

However, traders should be ready to short-sell (or take stops) on a breakdown/breakout beneath this support level which could collapse shares quickly toward the $210 per share prior low from June.

Even if you’re not trading this stock at this juncture, it should be fun to watch what happens next for your educational reference. Continue Reading…

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