Feb 2, 2016: 11:48 AM CST
Google (GOOGL) broke impulsively higher to a fresh new all-time price high today after yesterday’s better than expected earnings announcement.
Let’s update our Google (GOOGL) charts and take note of the new breakout in an ongoing strong uptrend.
First, take a look at last week’s post “The Bullish Breakout and Uptrend Continues in Google.”
In that post I highlighted the recent bullish reversal “up away from” the $700 level above the 20 and 50 day EMA resistance cluster near $750.
The breakout – on higher volume – set in motion the trade and expectation that price would continue traveling toward $800 – price achieved the $800 “Round Number” uptrend target today.
Note the prior two breakouts – and price surges – in July and November 2015.
Let’s pull the perspective back to the Weekly Chart for a larger viewpoint of the ongoing uptrend: Continue Reading…
Feb 1, 2016: 12:31 PM CST
Crude Oil (@CL) broke lower at resistance with stocks this morning.
Let’s overlay a Fibonacci Retracement Grid and plan the key levels and opportunities right now:
We were targeting the $34.00 level (a Daily Chart target) after the intraday V-Spike Reversal on January 20th.
Price waved its way up to that target, giving a few short-term bull flag (buying the retracement) trades on the way higher.
Negative divergences appeared into the $34.00 level and price turned down Friday.
This morning we saw a downside gap and break of a rising (blue) trendline as drawn. Continue Reading…
Feb 1, 2016: 12:04 PM CST
Popular stock Twitter bounced into resistance this morning on possible acquisition rumors.
Price jumped up 8% into a key resistance target – we can plan the next swing trade from this key level.
Let’s do it!
First, check our prior update “Downtrending Twitter Can’t Catch a Break” from January 19th.
From then price did trade lower to retest the prior low ahead of today’s “Twitter caught a break from a rumor” event.
Rumors can send stock prices flying in either direction which provides both opportunity and risk.
Rumor aside, let’s focus on the chart and trade plan based on current levels. Continue Reading…
Jan 29, 2016: 1:34 PM CST
With the market bounce continuing today, Google (GOOGL) – one of our “strong stocks getting stronger” – also broke higher above resistance to trigger a new breakout.
Let’s quickly update our Google charts (we still refuse to call it “Alphabet”) and plot the next pathway:
As noted previously, the $700.00 per share level was the downside target low (achieved) and the critical “Make or Break” support pivot.
Ultimately shares held support and buyers stepped in aggressively to rally the stock up away from $700.
From there, price retraced to the first target – the 20/50 day EMA overlap – at $740 per share.
This week price (buyers) broke firmly on higher volume ABOVE this key level to trigger the new breakout and extend the bullish swing (and ongoing uptrend).
Watch for a possible swing (pathway) higher “up away from” the $740 level “toward” $780 to $800. Continue Reading…
Jan 28, 2016: 2:58 PM CST
Price is pivoting between the wide range from yesterday’s Fed Announcement.
Let’s update our levels for the S&P 500 Index and note the big trending stocks today:
As I highlighted last weekend to our Intermarket Strategy Members, we took a bearish turn going into 2016.
Our planning levels extended from 1,915 to the 1,875 pivot and so far that continues to be the right strategy.
We still await a breakout from this wide range but until then, we’ll keep playing within the boundaries.
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