TNDM is an uptrend stock. However it has given up healthy pullback everytime. RSI indicates overbought levels and we can possibly see more pullback. Only good for scalping on the short side.
PVH finds alot of resistance in the $25.00 region. Volume has finally faded off with declining buying interest. This can give up more tomorrow.
JCP has found strong resistance in $23.00 – $25.00 region. Once again the same level provided strong resistance. The stock sold off from the resistance levels and based on past trends could drop more. Potential short.
GHDX had recently broken out of its $22.50 resistance. Once the resistance was taken out, the stock kept flying high. However now the stock saw continous two days of sell off. Is this the end of the rally ? Keep watching.
KNOT now enters strong resistance area at $9.20. Potential short below this price with stop loss on the break of these resistance levels. The stock shows overbought level and could possibly start reversing.
PANL is approaching it 200 dma. Also $10.50 should provide a resistance, since it was previous high from which the stock reversed to the downside. Potential short below the 200dma with stop loss above $10.50
RGR is in overbought territory for quite a while. However fundamentals of the stock is keeping it alive and strong. Looks like the stock is consolidating again before it makes another major move. Not a potential short yet, until a breakdown is confirmed.
GCO has slowly spiked from $11.00 to $19.00 level, breaking past many possible resistance. This stock did put in a sell off today and could be the trend reversal shorts are waiting for.
DTSI is flying high. It broke past its 200 dma with strong volume. Not a potential short yet. Let the volume fade out before taking a short position.
Berry Petroleum Company (BRY) is an energy company engaged in the production, development, acquisition, exploitation and exploration of crude oil and natural gas. The Company has organized its operations into seven asset teams: South Midway-Sunset (S. Midway), North Midway-Sunset, including diatomite (N. Midway), Southern California, including Poso Creek and Placerita (S. Cal), Piceance, Uinta, DJ and E. Texas. On July 15, 2008, the Company acquired a 100% working interest in natural gas producing properties on 4,500 net acres in Limestone and Harrison counties in East Texas.
Even though stock price movement looks random to many newbies, it is not. Most of the time there is always some rationale behind the movement. This rationale also provides excellent trade setups each day in and day out.
Above is the chart of BRY today and how if you observe carefully you can find interesting trends to trade with. The stock moved from $12 to $13 and back to $12, providing trades both on the long side and short side.
The stock prices move intra-day based on how the stock plays out at key supports and resistances. These also provide get trade setups. Lets look at 4 such charts to understand how to find them.
WFR is a classic spike in the morning and fade in the afternoon intra-day chart. When the key supports were broken, this stock gave up more, making it more predictable play. $18.00 and $17.50 pivotal supports were taken out, causing the sellers to keep selling and push the price lower. WFR saw it go from $18.20 to $16.60 and back to $17.20.
OCN had no clear signal in the morning. Infact it kept moving in a smaller range of $11.50 – $11.70. It did put in double tops for the day, but that was no clear signal to short into. The short signal arrived when OCN broke below the $11.50 support line. It triggered a series of stops pushing the stock to $11.20 in no time.
MWV had no clear signal in the morning. It also traded in a small range from $12.50 – $12.80. Bulls couldnt take the stock above $12.80 after multiple attempts. This was early signal for bears to short into. However once the $12.50 support was broken on the downside, this provided excellent shorting opportunity.
RT is an interesting intra-day chart that worked perfectly. $2.80 provided support in the morning, from which the bulls pushed the stock to first $3.00 and then $3.12 level. After topping at $3.12 the stock started selling off. Once the key $3.00 was broken down, the stock fell to $2.80. Once the earlier of $2.80 was taken out too, RT cracked all the way to $2.62.
