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Here we are again with our picks for the week. This time we saw 2 similar looking patterns on 2 different issues. First off the bat is DGTL.
As can be seen in the chart, we clearly see a cup w/ handle with a falling wedge acting as our handle. I'm just waiting for a breakout at 1.72. If it flies from there, I'm looking at 2.85 as the target. However, we must also take note of previous resistances at 2.00, since this is also a psychological resistance, and 2.10 as another resistance. After that, we should see DGTL fly.
Next on the radar is EIB. The pattern may not be as clear as DGTL, but it could also be worth looking at. I believe that there is also a cup w/ handle here. A symmetrical triangle serves as the handle. If it breaks out, I'm looking at a trigger price of 0.59 and seeing a target price of 0.78.
But between the two, I prefer DGTL. Okay, time to place your bets!
When is a flag not a flag? When the volume is wrong.As seen in the chart, COL has a nice healthy uptrend which went sideways for a while. It broke out of that consolidation to climb all the way to 11.00. Now, the set up is there. However, the volume is not the textbook description of how the volume should be.
So this could be nothing but a false alarm. Otherwise, we might see this easily go to 13.00. No such luck.
NYSE Euronext (NYSE: NYX) was still around $80.00 last Friday but it already looked ready to take a fall. My informant, who I shall call ZZ Top to protect their identity, spotted this early last week. After conferring with my colleague, Welles Wilder (an alias of course), and our trusty apprentice VIP, I decided that NYX was on borrowed time and it was nearly time to short sell this. A descending triangle was right there waiting for us to hit it. I was quite surprised to see this drop immediately to my trigger price of $78.58 yesterday. Nevertheless, a disciplined trader should always be ready to put their plan into action. Therefore, order #1 for the day was executed almost immediately. Now the long wait starts for our downside target of around $51.73.
Now let's talk about the Nasdaq 100 index issue, Irish airline Ryan Air (Nasdaq: RYAAY). Everyone is talking about the troubled sector, the airline industry. There are a lot of candidates to short in this sector but I decided to concentrate on RYAAY as it has a distinct double top formation coming from an uptrend. Add to that, prices are trading below the moving averages. So if we want to talk about a weak stock then this has got to be one of them. Order #2 for the day was executed probably near the end of the trading day as my shorting price was where the low and close was made. Downside target for RYAAY is around $31.72. As to when it will hit its target remains to be seen. Will this be a soft landing or a crash landing...?
Here we go with our forecast for the week. First off the bat is ICT.
Based on the chart, we see a nice consolidation that now turned into a symmetrical triangle. The resistance I see is at 29.25. Therefore, I think a buy is called when it hits 29.50. Target for the short term is 34.00.
Next is the big daddy of the IPOs before, PCOR.
Based on the chart, we can see that it broke out of a big symmetrical triangle, gapping up. Right on the day of the gap, it starts a new area pattern; a smaller symmetrical triangle. As I see this, resistance is at 5.30, so once it hits 5.40, I would buy if I had extra funds and wait for the target of 6.10.
Next posts would be on certain US stocks.
Welcome to the blog of the tarantrader, the trader whose style defies all logic.
I will be updating this blog regularly with studies of both the US & Philippine stock markets.
Kindly stand by.
