Tag Archives: Short
Technical Analysis On Bank of America
Bank of America attempted to break out over its recent trading range between $11-$12.20 but failed. BAC also attempted to breakdown below $11, but found support. On the weekly chart, BAC is struggling to hold a breakout past its 200 SMA sitting at $11.63. The MACD has posted a bearish crossover on the weekly time frame as well.
The daily chart shows the range between $12.20-$11 I mentioned above. With recent MACD divergence chances are the upside momentum is slowing down. The indecision in the overall market has shown up in BAC price action and should dictate the future outcome of BAC. Should $11 breakdown, $10 should act as lower support. If the $12.20 resistance breaks, a new uptrend will be confirmed on the weekly chart with next resistance around $14.
Brazil iShares ETF (EWZ) Looks to Higher Prices After Double Bottom
Brazil iShares EWZ have put in a double bottom formation, touching in October 2011 and May-July 2012. Shares tried to re-test the support area of $49 in November 2012 but failed to do so putting in a higher low. Since November 2012 shares have rallied and stalled at the $57.50 recent resistance area as seen on the weekly chart.
Daily chart shows a channel formation at this area of interest with prices ranging between $56-$57.50. A break either way should suggest the future of EWZ. With price above the 200SMA, MACD in positive territory ,and RSI above the 50 line the bias seems to be leaning towards price appreciation.
Is Deckers (DECK) Out of The Woods Yet?
Deckers Outdoors Corp. has lost 67% since its $120 peak in November 2011. Technical analysis suggests DECK is trying to stage a reversal but may not be out of the bears grasp just yet.
A weekly chart shows the nasty down-trend from late November 2011 through all of 2012. MACD convergence suggest the downward momentum might be letting up, coupled with the breakout from its downtrend, there is a case for a reversal in the near term. Significant overhead resistance lies at $42-$44 range.
Daily view shows resistance at $42.50 with an ascending triangle formation. A break to the upside could give price near term momentum to test the 200 SMA on the weekly at $57. However a breakdown of this pattern could lead to more downside pain. Earnings are on February 19, 2013.
S&P 500 SPDR SPY Outlook 12/27/12
What a crazy day in the market today 12/27/12! The daily view of the SPY shows a large hammer forming, as it rejects the 50EMA. With the fiscal cliff approaching with no resolutuion I see the market being very mixed moving forward.
It’s more interesting to take our view down to the hourly charts for a better understanding of the price action today. Price fell very fast through $141.50 support this morning and then proceeded to retest this area. The close left price sitting right below the broken support at $141.50 which could act as new resistance. Price also rejected the 20EMA which lies at $141.62. Tomorrow will be tell-tale to see if the V shape correction at $140. plays out or if the new resistance at $141.50 holds.
Price Channel Opens Up Arch Coal Inc. ACI To An Interesting Trade Setup
ACI has run back up into the early November gap down resistance at $7.75. Price seems to be testing both the broken uptrend channel and the 200mda opening up an interesting trading opportunity.
Hourly shows a nice price channel forming. More upside over $7.90 with a target of $8.75. Downside under $7.40 with a target around $6.25. My bias is lower prices in near term.
US Natural Gas Fund UNG Breakdown
UNG breakdown of trend line support. 200 sma is at $19.14.
Weekly chart looks really bearish as the price action rejects the 50 ema, and falls out of the bear flag. This weeks price action will be important.
Breakdown under $20 for aggressive entry.
Forex Outlook
EURUSD
Short bias under 1.29264
GBPUSD
Short bias under 1.60067
USDCHF
Long bias over .93160
AUDUSD
Short bias under 1.04341
United States Oil Fund USO
USO short under $31. Target 29.50. Wish I got in this one after the hammer formed 11/19
