RXN daily chart
RXN has been hitting resistance many times at it approaches 23 many times over the past year (circled in blue). Furthermore, if you zoom out at the chart it also had resistance at the same level back in 2012. RXN has been bouncing around for a year between 15 and 23, and keeps fighting its way back towards 23. Bottom line is that 23 is a significant level for RXN, and looking at today’s volume and bullish action I think it may be providing a clue that the stock is ready to break through the 23 level soon. Today the stock traded 5.5 million shares versus a 10 day average of 724k. This was primarily driven by what looks to be a single order filled at 3:54pm for better than 3.2 million shares. The daily volume today represents the highest volume in the past year as seen above.
As for a trade plan, probably going to sit on the sidelines for this one to observe and gain some insights for use in the future.
Was watching JWN this morning and shortly after the open JWN broke above Friday’s high and my order was filled at 47.17. From here, looking to take profits around 55 and using February’s low of 42.32 as my stop area.
JWN on watch tomorrow, caught my eye this weekend on the Finviz unusual volume screener. Especially like the bullish kicker candlestick signal as well as extremely high volume, and these two indicators could be a clue that the stock has formed a bottom and is ready to go higher. Bullish kicker as I’ve observed when combined with high volume has been quite powerful in indicating upward movement as seen recently in WBMD in late January, LUK in early November 2016, and MPEL in mid July 2016.
I’d be interested in establishing a long position on Monday if JWN can break above Friday’s high of 47.03, looking to buy around 47.15-47.20. From there, would be looking for JWN to continue higher and reach 55 before making a new 2017 low around the 42 area. In other words, risking 5 to make about 8.
Worth noting that JWN goes ex-div tomorrow so I’ll be keeping an eye on the price action as it relates to the impact from the dividend.
2/27/17 update- Long JWN at 47.17
I sold ZUMZ on Wednesday 2/22/17 at 19.85 which is a tiny winner from 19.60 entry. Took a closer look at the action in ZUMZ, and this looks to be an instance of “thought there was something better than there really was”, and that’s a pretty bad reason for trading a stock.
My rationale for buying was average at best. Specifically looking at the volume, while above average which triggered the Buy idea, was not “major” volume in that there have been several green bars of large volume above my trigger in the past few months. After analyzing recent winning and losing trades, I am Looking to only get involved in stocks with “major” volume as a trigger going forward. Ie a green bar with the highest volume in the past 6 months, 9 months, or year. Very happy to eek out a small profit on this one.
Bought MYGN this morning at 17.21 on continuation through this week’s high price of 17.18 from Monday’s trading session. Added this to watch yesterday due to the astronomical volume and from here looking for the stock to reach 20 before making a new 52 week low.
MYGN Daily Chart
Today’s volume in MYGN is something to take note of and I think it might be sign of a reversal about take place. The stock traded 12.9 million shares today versus a 10 day average of 1.8 million. Wednesday, 2/8/17 and Monday, 2/13/17 each saw major buying as well trading 6.5 and 5.2 million shares respectively. Given the stock has been beaten down nearly 50% in the past 12 months and has been oversold on a daily, weekly, and monthly timeframe recently, I think we could easily see MYGN move back to 20 in the next few weeks with continuation over recent highs.
Bought QCOM today shortly after the open on continuation through Friday’s high.
More to come.
Stock QCOM daily chart
QCOM caught my eye after Friday’s trading session and looks to be presenting a pretty good opportunity for a low risk trade to the long side. Noting this as purely a technical setup as earnings are out of the way until 4/19/17. The stock looks to be forming a base with today being the first close above the 8EMA since the recent sell off. QCOM closed on Friday at 54.00 and had an intraday high of 54.28. The stock has plummeted so far in 2017 from the mid 60’s to its current level at 54. January 23 specifically I look at as the day of panic selling or capitulation due the major gap down from the 60’s into the 50’s. QCOM traded over 94 million shares that day, a volume of which the stock has not seen since April or 2010. That’s a serious amount of shares changing hands.
Along with the bullish candlestick demonstrated from Friday’s price action, QCOM is just beginning to come out of oversold stochastic territory with ascending volume. If it can cleanly break through Friday’s high of 54.28, I’d be interested in opening a long position in the range of 54.35-54.40 with a target of 58.67 (which is the high from the January 23 gap down day) and a stop beneath 52.37 (February 2017 low from 2/2/17).
Also worth noting, QCOM goes Ex-div ($0.53) on Monday, 2/27/17. May be willing to risk/position size slightly larger knowing there is a chance to catch the dividend. Let’s see how the stock goes on Monday.
Disappointing to sell a stock for a loss on a week that all major averages closed at all time highs. Sticking to my original game plan for AOBC, sold the full position at 19.80 on Tuesday 2/7/17, which represents a 4% loss.
Today’s session closed at 20.00 for AOBC which is dangerously close to my stop area of 19.89. Still hanging on as per my original trade plan, and at this level I think the stock presents an excellent reward-to-risk ratio with about 20 cents downside and upside potential of a point or two. Did I think it would pull back to 20 after approaching 22, on 2x average volume as recently as last Tuesday 1/31/17, absolutely not. But definitely going to respect my stop and cut my losses if the chart breaks down and AOBC moves towards the low 19.80’s. Sure could be a good spot for the stock to find a bottom around here. Let’s see what the rest of this week brings.