These are the opportunities of a decade that we look for both in day trades and swings. Big markets dropped about 12% off the their highs in the last week but they all had a reversal day on Friday. They seem to have found support and it will be interesting to see what the coming week has to bring. But the probably will need to consolidate. Assuming we hold support, these are an amazing opportunity, for swing trades, as many of these stocks are off 50% from their highs. Yet, economically, nothing has really changed. Elliot Wave theorist would suggest that we have seen a 5 wave decline and should find support in here. The Dow Transportation also came off very hard dropping nearly 2000 points or over 14%. The Tranny has come down to the long term trend line and is at lateral support. The Russell 2000 (IWM) dropped around 12% but may be only in a 4th wave of a 5 wave drop.
The big parts of the market components all have similar charts. AAPL is in a down trending channel but bounced off of lateral support and the bottom channel line. It did rally $6.00 back to the top of the down trending tops line. It needs to get through that then $164 is the key resistance. AMZN looks more like a falling wedge but also had a 5 wave decline. It rallied back $70 on Friday to lateral resistance and the declining tops line. Key resistance for AMZN comes in around $1385. GOOG dropped $200 (16%) in the last week and looks to be the weakest of the indices components. It has key resistance at $1,075 area. FB in a falling well defined falling channel. It did rebound nicely on Friday but right to lateral resistance. NFLX, the decline more muted than some of the other components. It looks to be in wave 4 of a 5 wave drop so we could see one more drop on NFLX to the down trending channel line.
Semiconductors (SMH) has broken the long term trend line coming from $43 and double topping to $108. It has rolled over and we will see if it can hold support here or will it lead the market lower. The biotechs (LABU) had a huge move off the lows running from $67 to $82 before closing at $79 or so. Financials (FAS) has broken through several levels of lateral support. It is not really showing any level of support yet. I'll be watching this closely on Monday to see if their is a rally or a continuation of the drop.
Longs:
ABEO: Back down to the bottom of the base pattern it has been building. Somewhat disconcerting, though, after breaking out of the long base and then failing. It needs to hold $14.00. If it does and markets rally I will be looking to add for a swing trade. Under $13.80 and I will be gone.
TWMJF: Pot stock Canopy Growth after hitting a high of $40 pulled back to $17.00 where it found support. It bounced and is now at key resistance of $25.00. It needs to get through this level with $32.00 and $40.00 as the price targets.
ATRA: Look for stocks with this type of chart pattern. Where markets are getting hammered, this stock made a nominal new high on Friday. It is at the top of the channel but over $41.85 and a break through the top of the channel line and we could see $50.00. But if it doesn't find the break out, then a pull back to $36.00 would be a great entry opportunity. Short ratio, 22.22 days to cover.
BSPM: In this weak market, this junior biotech continues to perform. It has broken out of a wedge and traded up to resistance at $5.00. I would look to go long over $5.00 with $6.00 as the price target. Above $6.00 and this stock could really rock.
CBAY: Stock is also holding up very well in a down market. It seems to be building a base in here between $11.00 and $13.00. Watch for a move over $13.00 to take this stock to $16.00 and then $22.00.
CBIO: Monster stock that I have been writing about for some time, but recently on the break above $20.00 Huge reversal day on Friday closing near the upper range of the trade. It is near the top of the range so we may see it pull back in here. Support in the $29.00 area for an opportunity to add a position. Stop under $28.50. Target, $37.00.
IO: A stock I wrote abut on the break of $17.00 where it traded to $25.00. It then pulled back and held support. The last two days have been very strong with Thursday a huge reversal day and then Friday a pop out through lateral resistance to a high of $28.55 closing at $27.55. If this momentum continues the top of the channel is $30.00 and lateral resistance at $34.00.
RIOT: Over $16.50 and I am looking for $22.00.
VIRT: Explosive move from the $19.00 range to a high of $29.00 Most likely over bought, but it is all new high territory so if momentum continues I would look for $32.00.
VKTX: Would look to add for a swing at $5.75 range with stops under $5.40. Target $8.00 and $10.00.
Shorts:
AAOI: Stock has broken down from a descending triangle (at the top of the down trending channel). Price target $27.00.
AGX: Swing short at $45.00 when I said it had broken the wedge formation. Stock hit first price target of $40.00 but has kept going. Next target $35.00.
BITA: Another swing short I called when it broke out of the up trending bear flag at $35.00 and then again at $32.00 stock hitting a low of $25.70. Price target now is $23.00.
The whole run up was on that original news on Feb.7 I think, so now i dont know if this is still a good long. Or maybe it is bouncing because of BTC and it will hold. IDK.
great call on CBIO. thanx for your help.
Glad you could take advantage of it. Tagsmy $37.00 price target.
http://bit.ly/2oZVJz7
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