May 22 Prep

Absent any surprise headlines or statements from Ben, I expect the market will remain range-bound. Following my daily chart review, however, I am not seeing a great amount of compelling long setups. If anything I am seeing more overbought charts starting to put in tops and show signs of correcting/retracing.

LONG Setups:

  • GILD – high bull flag, seems very close to a breakout through 57.10
  • MDRX – narrow consolidation in the vicinity of 52 week highs, expecting a breakout toward 14.50
  • SFUN – as mentioned in a few previous prep posts, starting to move to the upside from the narrow flag/consolidation, expecting continuation toward new highs

SHORT Setups:

  • NFLX – possible overbought short setup with a narrow bearish consolidation, should 235 level fail will be looking for a pullback to 20dma
  • AKAM – overbought short setup, starting to roll-over, possible downside to 46, followed by move to 20dma
  • CF – pretty significant looking bearish reversal bar on high volume with a close under 50dma, next area of support is around 185
  • EV – bearish reversal on high volume within an overbought setup, expecting pullback to 42 area
  • POT – long red bar on heavy volume from a failed bull flag indicates likely additional downside, next big area of support is around 42
  • WMT – continues to look toppy, next area of support is 76
  • MA – looks overbought and tired, should 582 fail, likely pullback to 570 and lower
  • PCLN – today’s reversal retraced all of yesterday gains and points to a likely move to close the gap to 815ish

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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