What’s New? July 25th

We have an FOMC Meeting this Wednesday, and the weekend report covered a lot of the general markets and various sectors expectations.  With that in mind, we will review a few of the things that took place on Monday, and then I will point out a few more stock picks…

 

WTIC JULY 21 – From the weekend report I pointed out that Wednesday with the inventory report, Oil broke over the 50sma.  This was bullish, an then it plunged 2 days later back below the 50sma.  I said that  I will be watching for this trend line to support the drop, for it to remain bullish.

 

WTIC JULY 24 – Well how about that! Let’s see if Oil can get back over that 50sma.

 

The only problem with this reversal at this point is that the XLE didn’t follow it, so I remain cautious on Oil / Energy stocks for now. 🙁

 

IBB JUNE 21st – A Bullish break out was pointed here back in June, and The Biotechs and Pharma stocks have done well.  This was quite bullish.

XBI WKLY –  So after the initial burst, I saw quite a few traders begin to go short the Biotechs ( LABD) and I pointed out that I expected a bull flag as a possibility and then a move toward the 2015 highs – $90 area in XBI.

XBI – That Bull flag type consolidation seems to be resolving upside, and many of the stocks in that sector are acting bullishly too.  I still expect XBI to reach the $90 area as an initial target.

 

SO let’s look at a couple more Biotech / Pharma stocks.

 

I want to add that even when the charts look good, during earnings season one should do their own due diligence BEFORE buying a stock. If they have earnings coming up, you need to decide whether or not you want to hold it through earnings, and set an alert or something to remind you when their release is.

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CNCE – After a 1 year sell off in 2016, a base and bottom formed for CNCE.  It has begun to recover after a  Surged  from $7 to $19  in a big way in 2 months.  CNCE pulled back for 3 months testing the gap area and then moved higher, breaking a down trend line on Monday. This looks ready to run to former highs over time, and a stop could be placed under the 50sma.

TXMD –  This therapeutics company ran from $3.50 to $6 in 2 months, dropped and back tested the 50sma,  and looks ready to go higher again.  This looks like it wants to run right to $8, but it could back test that purple trend line break too.

 

APHB – This was in early July, a break out above the 50sma. Last week I had a lesson showing that often stocks will begin back testing these types of breaks.

APHB – APHB actually fell below the 50sma and then regained it again. It has only been about 2 weeks of sideways and it looks like it is steady and climbing again.  The POP today was held down by the 50ema.  I still think that this can run higher.

IDRA JULY 6 –  2 weeks ago this was my chart of IDRA as it was moving off of the higher low. It pushed along the 50sma and I thought that it might break out.

IDRA NOW – Idra broke the 50 ema  and back tested it and now is forming a bullish ascending  wedge.

I would be comfortable  buying this here with a tight stop under that 50 Ema.  It actually looks ready to break out now

MBVX – For short term scalp style traders, something is percolating here. Lows are probably in place and this could POP to the 50sma as an initial move higher. That POP on Monday was 20%.

 

GOLD-  I want to mention before we go into the FED MEETING that Miners are not following Gold,  but I did mention that Miners looked to have put in thoer lowest lows in May,  Gold looks bullish here coming out of recent lows, and the COT shows smart money is closing shorts.   It is still a bullish set up, so I lean that way, despite the fact that the USD is overdue for a low, and that would seem to push precious metals lower.  SO I will say this…

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GOLDS run here out of the July lows doesn’t look like a weakening 4th or 5th daily cycle, does it?  It looks more like a possible ICL  to the naked eye so far. Why?  I only see 2 red days out of the last 11 days.

GDXJ – GDXJ fell with Gold higher most of the day, but it is in a triangle and topped out.

GDX – Back on July 18 & forward I pointed out this Bearish Rising Wedge in GDX.   Notice that I said that it may only drop to the 10sma at $21.68.

GDX–  Sure, they resolve to the downside, but they can but simply form a channel, like this. So far it fell to the 10sma, but that has moved higher and is no longer at $21.68.  A channel seems more likely when I look at it now, and that back tests the magenta downtrend line break.  It could do this Tuesday & Fed Wednesday easily.

ABX– A component of the GDX, this actually looks U-G-L-Y!

GG – Another component of the GDX & this looks perfectly fine.   NEM, another major component of the GDX  looks a lot like the GDX, so we’ll see what happens here on Fed Wednesday.

 

More stock set ups.

 

HLX – This was HLX JULY 13,  and I was looking for a break above that 50sma as a positive sign.  This company provides NATTY & OIL SERVICES.

 

HLX – After breaking above the 50sma, it did a back test that actually dropped to the rising trend line on Monday.  There it  reversed  and recovered the 50sma. I consider that strong reversal a buy and the trend line would be my stop.

 

 PXLW JULY 12 – Pixelworks is recovering and I showed that last year and again here in Mid July.

 

PXLW – We currently have an Inverse H&S formation and I think that this is a safe area to enter this trade, with a stop  below $4.75 – ( maybe a bit looser so you dont get stopped out) . I did NOT look up when their earnings are, be aware of that if you take this trade.

 

WNDW –  I recently had a report on Solar stocks turning bullish.  Look up the stocks listed on this chart,  WNDW may be about to break out & join the race.  JKS should have been listed too.

 

1.  In the weekend report and in past reports I have mentioned the bullish explosions that returned to the Marijuana sector. A news report  is stating that Sessions is about to start cracking down on the Marijuana industry.  BE AWARE OF THAT.

http://www.dailymail.co.uk/news/article-4725122/Jeff-Sessions-prepares-crackdown-marijuana.html

 

2.  Other reports are that Trump is in secret talks to fire Sessions.  Take all of that as an F.Y.I. ,  but currently we are seeing strong moves in the sector and the charts remain bullish for now.

 

ACBFF –  From the weekend report, a bullish set up breaking higher.

ACBFF – Following  through again Monday

CNBX – This was on July 20th, pulling back on very light volume after a powerful surge higher, actually doubling in days.

CNBX –  It back tested the 50 ema, and was even up 15% at one point on Monday.  If this breaks out and there is no real damaging news ( Sessions, etc) this could make a continuous move higher  and look at the potential.

 

That is enough for now…

I do have experienced  traders here that have requested some possible ‘buy set ups’ or buying opportunities from time to time when they arrive. After all of the sell offs, consolidations, base building and choppiness in many sectors lately, we do have some fairly nice set ups forming.

I know that maybe it is tough for other traders to look at some good looking set ups in these reports and feel like maybe you are ‘missing some good moves’ if you are patiently waiting for Gold & the Fed Mtg to pass by.  We are waiting for that ICL confirmation.  Trust me, if the ICL is in place with Gold & Miners,  the upside potential in that sector is always very very big for weeks , even Months.  You aren’t missing anything and will do very well when your turn comes. It’s really just a matter of time.  Enjoy your Tuesday trading and thanks for being here at Chartfreak!

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~ALEX

 

 

CVRS – This is actually 1 more biotech medical stock that I liked.  Monday it reversed higher and broke back above the 10 & 20 sma.  It looks like it wants to continue higher, so I was just going to watch it and report on it if it does get the follow through higher, but I’ve decided to share it now instead.   Let’s take another look…

CVRS WEEKLY CHART – Early in 2017, after a long period of selling, this stock popped from under 50 cents to $1.50 and then to $2.00.  It has now pulled back again to an area of support, the weekly 10MA and it reversed higher today.  That is usually a reliable low to buy.

CVRS DAILY – The first consolidation in April did tag the red line ( 10sma) and kept consolidating for another month.  I guess that that COULD happen here as pointed out with Blue arrows, but I do not think that it is more likely. I feel that this could just continue higher from here.  A run to $3 from here is almost 100% from Mondays lows.