EIA stats here:
ACTUAL SURVEY ANALYSTS’ RANGE
GAS 372K 150K -1000K to 2000K
DISTILLATE 1630K 450K -1300K to 1700K
CRUDE 5511K 875K -1000K to 2200K
Cup and Handle formation
Reasons for long side trigger above $83.36
1) Cup with handle forming: good volume on left side of cup with a slight drop in volume at cup base,and slight increase on right side,with a decrease on handle.Volume needs to increase if a break to the upside occurs or pattern will not be as valid.
2) Moving averages are in proper order.
3) Uptrend from previous breakout is still intact,along with uptrend in oil sector still intact.
Oil is making a nice close here,watching the OIH,$XOI,nice orderely pullback keeping within the current uptrend.Setting up SU for that possible break higher.There is obviously some big money Oil guns holding this baby above $82.00.The more I look at the daily chart,the more I see a cup and handle formation here.I’d like to see some volume on the breakout over 83.00 and 83.36 if it comes into play.That should break the handle formation and propel this one higher.I also like the fact that todays low was lower than the prior two lows and the stock is setting up to close at the top of the
SU is getting my attention again here.It has been consolidating again now for the last 18 days,and holding above 80.00 with only one close below that point.It now seems to be holding above 82.00 and reaching for a close above 83.00,which would set it up for a nice break higher.I would like to see it consolidate for one or two days at the most,which would also set it up for a nice 20 day breakout.The short-term uptrend is still intact along with the move in OIH.Oil had a slight pullback here which may not be over quite yet,and I think Wednesday’s EIA numbers could setup the coming dire
Today is a nice turnaround in my trading from yesterday.I was a bit off when starting out and didn’t hold onto a nice short in ITW (Ill Tool Works Inc.) Realizing the same feelings I was having yesterday about taking trades off that should have worked,I got my composure together and stuck to my strategies that work for me.I used the Trailing stops on the next couple of trades and made a nice gain in both CNH and DE.
Well today was a day of revenge trading,an amatuer move on my behalf.I wasn’t mentally ready to trade first of all,that should have been clue number one.Here was the start of the day.I’m scanning the markets for candidates and what comes up to the top of my list,MCO (Moody’s Corp.).I find a low risk entry at 67.37 the high of the opening range.I couldn’t of asked for a more perfect entry,so what do I do you ask?
AGU (Agrium Inc.) Closing strong on good volume above a prior consolidation.
BGG (Briggs & Stratton Corp) Closing strong on “decent” volume,above previous consolidation.(Looks like some shorts are getting squeezed on this one.
TEX (Terex Corp) Strong close,volume close to average daily,but not above.Also closed above prior consolidation.
TSL offered a nice trade this morning.It’s a tough stock to trade and has run quite a bit so I won’t be playing it for the rest of the day.Though it’s tempting I’m not going back to the well too many times here.I captured a point on it at a price of 64.74 out at 65.74.Also the last high of 66.59 was printed on only a hundred shares so it looks like it has lost it’s momo for the moment.It offered a nice re-entry,but I was too scared,that stock can be wicked if your entry isn’t perfect.BW also triggered for me at a price of 57.80,unfortunately I was too cau
If you want to be a trader you have to be confident in your ability.Let me re-state this,if you want to continue to be a trader you have to be confident in your abilities.
I’m looking for some more candidates to trade for the upcoming week,so I’ll post some new ones hopefully soon.As you can understand I need to spend more time on trading and research than I can on blogging about it,but I’ll do my best to share what I can.Some of the silver/mining stocks are catching my attention.Some of these are lower priced stocks that I don’t usually like to look at,but if there is sufficient volume and a pattern I need to pay attention to those as well.My main focus right now though is looking for liquid issues with a good average true range.