TSEM (Technology Sector Semiconductors) TSEM is the featured trade idea and today I feel it should be featured because of the bullish trend that it has been in, the pullback that is finding support on the 50-day simple moving average with a double bottom, the last four days has formed a four-bar cradle pattern, not to mention that yesterday we gapped over a doji and closed over the T-Line and the 20-day simple moving average.
CHGG (Consumer Defense Sector Education and Training Services) Over the past few weeks, CHGG has printed a double bottom followed by a bull kicker that gapped over the big three. Recently CHGG has seen a little profit taking back to the T-Line for a PBO and is now trying to form a bullish J-Hook.
NEO (Healthcare Sector Diagnostic and Research) NEO has had an impressive bullish T-Line run starting July 1 then met with profit taking late July. On Thursday and Friday of last week, we saw buyers coming in and closing Friday with an impressive morning star signal closing back over the T-Line and the 20-day simple moving average. Continued bullishness from here could post a 20+ percent gain for the swing trader.
FREE (Industrial Sector Shipping and Ports) Be very careful here; this trade is not for everybody and is meant to have a little fun with. It’s a cheapie that can be wild and crazy. FREE has started to construct a bottom starting July 23, laid some foundation and then started to rise Wednesday closing over the 50-day simple moving average yesterday. This has made FREE a rounded bottom breakout candidate with about 30% short-term profit potential. As mentioned above, be careful with this one as it can turn and be painful. This type of trade is not for everybody.
<h3Today’s Swing Trade Idea
ZLTQ (Healthcare Sector Medical Devices) ZLTQ has formed a bullish morning star PBO and exploded with buyers yesterday. I am looking for a challenge of the January 16 highs which is approximately 22-1/2% of profits. ZLTQ is a chart that was discovered by one of our members 1973Hog a couple of days ago. Many of the members in the trading room bought near the $19 area when Steve posted it. Today it is a featured trade idea because of the strength that it’s showing for the target above. Thank you, Steve.
CVLS (Healthcare Sector Biotechnology) CLVS has successfully formed a rounded bottom breakout after constructing a double bottom. Currently the last three bars are set up as a continuation pattern with about a 20% target followed by another 16% target.
SPEX (Industrial Sector Business Services) There is 160% of profits to be had to the 200-day moving average and forming a rounded-bottom breakout, which, FYI, is my favorite chart pattern of all! SPEX closed over the big three yesterday after forming a higher low double bottom chart pattern. It pays to be in the Hit-And-Run Candlesticks trading room during the day. One of our members pointed SPEX out when it confirmed the rounded-bottom breakout. We went long at $1.73.
AAPL (Technology Sector Consumer-Electronics) AAPL was featured as our trade idea on July 8, and after a rough start for a couple of days, it did pull out a nice 4% profit. APPL has now pulled back to the 50-day simple moving average and painted a little hammer. The candlestick hammer may be the bottoming signal were looking for to receive a run to $100 or more, possibly a 6% to 10% swing this time.
XXXXXX (No Featured trade idea today) Today being Friday, it’s important to think about how your week has gone and what you can do to end your week on a positive note, no matter how small. Take some time today to reflect on the market and your trading. Have you been fighting the market or have you been working with the market? Are you a friend of the market or are you a foe?
EXK Long (Basic Material Silver Sector) EXK has been forming a bullish flag from mid- July and broke out yesterday above the T-Line and the 20-day SMA. You can also see from the bullish flag the triple bottom lows. FYI, a bullish cup and handle pattern is also visible on the daily. Also check out the base breakout on the weekly chart and a possible 25% profit near-term.
