AUG 7th WEEKEND REPORT 2

In part 2 of our weekend report , I wanted to provide a few trade ideas for our traders. I am still seeing some very favorable looking set ups, with low risk entries forming.  The big warning that goes with these is that we are in earnings season and we are seeing surprises both to the upside and down. Some of these companies have their earnings behind them already, but please be aware of when the others are to be released.

SID –  This is a Steel stock that we have traded in the past. It looks like an inverse H&S Set up ready to break out. I think that it wants to at least run to the 200sma.  The RSI is bullish.

GGB – I posted this buy set  up last week…

GGB – And it did break out higher.  I think that this is still a buy.  The 200sma is sloping upward and this adds bullishness to the bigger picture.

GV –  I have traded this in the past. It looks like a great set up really with the 200& 50 sma tightly rising together. Earnings release date for GV is Thursday Aug 10.  Wait for the earnings to be released to be safe, or use a stop below the 50sma, but a gap down from here could be costly.

SOME ENERGY STOCKS MAY NOW BE READY

NXE – Interesting set up here in a Uranium company.  I do not like the volume at times, but lately it has seen some good buying.

BBG – BBG Released earnings last week, so the worst could be out of the way. In this JULY 19 chart I was pointing out the struggle with the 50sma.

BBG – Now with earnings behind it, it is breaking above the 50sma and is a low risk entry,  even using a stop below the lows 3 days ago.

OAS – OAS sold off after releasing earnings to the lowest lows last Thursday with strong volume.  It quickly reversed Friday with strong volume too, and this is often THE LOWS as a shake out.  There is a chance that short cobering will push it right through the 50sma, there is a chance that it will stall under the 50sma, but the lows may now be in place, as the Energy sector picks up.

WTI – This company had a strong run higher last November to December, actually doubling in price. Earnings have been released, so this may be ready to break from the base and move higher.

LET’S LOOK AT THE PROGRESS OF AN ENERGY STOCK

ERN – This is a July 19th chart with price pushing against the 50sma.

ERN – The next day it did look to be starting to break through that resistance.

ERN AYGUST 3  –  Last week we saw price slowly working its way around that 50sma area, slowly climbing the 10sma higher. Then it Popped 15% , and looked to be heading toward that 200sma, which might act as the next resistance area.

ERN – And the next day( Friday)  it was up another 17% tagging that 200sma.  So this stock that was slowly rising up gained 30% in the last 2 days.  It does look like some of these energy stocks may have now bottomed  ( The ones that have already released earnings), and it may be a profitable area to trade in again.

VSTM WKLY–  I wanted to point out a bullish pattern in VSTM.  On a weekly basis , and tight consolidation like this often happens to relive over bought conditions, but sellers cannot gain control. It is viewed as bullish, but as a warning, they do have earnings coming out soon.  As a biotech company,  surprises can be in any direction when they release news.    Some of us bought the last weekly sideways consolidation at $2 as it broke higher and watched it run to $4. I will be watching this one.

I hope you all had a relaxing weekend, welcome back and enjoy your trading Monday!

~ALEX