Tag Archives: Short
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.
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.
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.
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.