Hidden Trading Opportunities from August 20 Consecutive Close Scan

Aug 20, 2014: 5:45 PM CST

Sometimes the simplest scans can provide stock candidates to trade that we otherwise may never have spotted.

Here’s the results of today’s “Most Closes in the Same Direction (up)” scan from TradeStation:

Lesser-known stock Illinous Tool Works (ITW) has closed 11 days higher – that’s worth a closer look:

We can see shares trading back up into the resistance target of the prior high from June ($90 level).

Notice the secret straight-up rally from the $81.00 level into the current target.

Very aggressive traders may view this as a “short an over-extended stock into resistance” opportunity and that would be the logical thing to do.

However, a breakout beyond the $90.00 level triggers a bullish breakout potential opportunity which could extend this 11 day streak.

Of course, a reversal (or retracement) down against the prior high is far more likely than an extension of the 11-day streak but plan and trade accordingly.

Popular stock Amazon.com (AMZN) also tops the list of consecutive up-closes today:

While you’re likely more familiar with Amazon (AMZN) than Illinois Tool Works (ITW), you may have missed the fact that Amazon shares have traded nine days in a row straight up off the $310 support pivot (from a gap) into the current resistance cluster near $340.

This similarly opens a “Will it Breakout” or “Will it Retrace” unbiased game-planning scenario for your next trade.

A logical movement down becomes an aggressive short-sale opportunity (stop above $340) while an alternate breakout set-up (short-squeeze) may trigger above the $340 level.

These are just two candidates that offer further study and trade planning from our simple stock scan today.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

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