Good evening StockBandits!
Last week we saw the Big 3 each blow through important short-term resistance zones to continue their uptrends and post new 52-week highs. While the uptrends which began in October have indeed covered considerable ground, the fact is that technically last week’s breakout may prove to be an important start to a new leg higher as we build on multi-week bases.
The way we moved higher last week was also encouraging, as we saw a big burst of strength on Tuesday for the best up day since December 20th. That showed enthusiasm on the buy side, then was followed by some healthy rest days on Wednesday and Friday. We’ve been in an environment marked by gradual advances, so to see a bit more energy was encouraging as it invites some better momentum into the picture.
Short-term, we are a bit stretched here. The NAZ just tacked on 5% in 8 days, so at least a pause here would be healthy. No telling if we’ll get it though, as the bulls have quite a bit going for them at the moment. A shallow pullback or just seeing the market pause for a few days would do wonders to set up some new patterns and absorb this most recent lift by helping to establish some flags or pennants.
The challenge at this point in working my watch lists is trying to focus on those setups which look ready now and offer best risk/reward profiles. We should have plenty to select from in the days ahead, but we’ll take it one day at a time and stick with the best apparent opportunities.
I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
Video Stocks Discussed: ROK, ALXN, CRL, PXP, LNG, EXP, DECK, ALB, FLS, DLPH
Swing Trading Candidates:
DLPH has settled into a narrowing consolidation in recent weeks to create this well-defined wedge pattern. This looks poised to continue its uptrend, but will need to clear the upper trend line first. I’ll be going long if $32.50 is cleared to the upside, but rather than give this one all the way to the lower trend line I’ll be using a tighter stop with recent support. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
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The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.
