Mar 6 Prep

The market decisively broke out of its consolidation range confirming it is ready to continue higher. The next area of resistance is in the 1,550-1,560 range, it looks like we could get there this week.

The momentum obviously remains on the long side and the easiest way to get rewarded is to stay with the trend as opposed to fighting it.

LONG Setups:

  • RVBD – oversold bounce setup, will be looking for a move over 15.10 to indicate the start of a bounce
  • NKTR – broke out of a 6-7 week consolidation range, expecting continuation toward 11
  • PEGA – narrow bull flag, expecting a move above 28 and toward 30
  • VVUS – oversold bounce along with a bullish reversal bar today on higher volume, expecting continuation
  • YY – high bull flag, seems extended on daily, but potential remains for another move higher
  • AET – bottoming consolidation pattern on daily and it recaptured 50dma today, expecting continuation toward 20dma and beyond
  • AKRX – tight flag with very narrow action today, will be watching for a move over 14
  • ENOC – constructive pullback to 20dma, expecting a bounce through 17 and toward highs
  • MGAM – attempted to break out today but stopped around 19, will be looking for follow through tomorrow
  • NDSN – put in a higher low around 62, followed by a bounce higher to the top of the recent range, expecting continuation through 64 and toward 200dma
  • NTE – continues to consolidate in a very narrow range, will be watching for a move through 14
  • SODA – has been consolidating between 50dma and 20dma, expecting a move over 49.50 and toward the highs
  • CNQR – constructive flag and consolidation at 50dma, expecting a bounce

SHORT Setups:

  • WFM – bearish reversal indicates the bounce off bottom may be losing steam, expecting downside to 84
  • DDS – similar to WFM, possible rejection at the top of the earnings gap down pattern, if it cannot stay above 79.60, possible downside to 77.50
  • MLNX – still appears to be rolling over on daily, but as long as it stays above 50 there is a chance it may stage an oversold bounce. If 50 fails, next level of support is around 47
  • NC – bearish reversal within a bear flag, expecting downside to 55 and lower
  • AVAV – rejection of 50dma on higher volume indicates likely additional downside, next support area is around 21

Not long ago a Wall-Street-Hedge-Fund-Finance-MBA guy, now a momentum trader. Father, husband, mediocre soccer player, numbers geek with a lousy sense of humor. Obsessed with risk management, tries hard to "make money every day"

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Posted in Long Setups, Short Setups

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