Jan 29 Reversal Update and Trending Stock Scan

Jan 29, 2015: 2:20 PM CST

After the Fed Day Wednesday, stocks simply traded down to the lower support of the rising trendline and today rallied up logically from the key level.

We’ll start with the ongoing triangle in the S&P 500 which helped us trade today so far:

For a broader discussion on this ongoing and important pattern, see my update post “Plotting the Current Range and Future Breakout for the S&P 500.”

The main idea is that the market structure is consolidating between compressing trendlines.

In simpler terms, look to play price swings up and down within this range as the market plays “Ping-Pong.”

We saw the movement down from the “midpoint” near 2,030 toward (and slightly under) the 2,000 index target, only to see an intervention trigger a bear trap and instant bullish reversal back above 2,000.

This continues the triangle and once again targets the midpoint or higher.

We have potential bullish trend continuation plays in the following stocks from our scan:

Harman (HAR), Varian (VAR), McDonalds (MCD), and Ryland (RYL)

Potential downtrending candidates exist in stocks showing relative weakness today:

Qualcomm (QCOM), Hershey (HSY), Alibaba (BABA), and Vertex (VRTX)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “Jan 29 Reversal Update and Trending Stock Scan”

  1. Martin Says:

    When it comes to reversal it can be a double edge seat because a wrong one means the continue of previous trend so in case if we are going wrong it can be horrible while a good spot of reversal means solid profits. I am able to spot these trends very easily all due to the cTrader platform that I am using it’s latest and provided by OctaFX broker plus has epic system where everything is up to date so I can spot these things very fast.