Stock Trading Predictions & Technical Analysis: LVS

Monday, October 5, 2009

LVS - Buying opportunnity?

LVS - BUY (daily)

Looking at LVS daily chart, LVS is a BUY. After seeing a reversal on Friday after bouncing back up its 50 day MA and an upward gap today, LVS seems to continuing its upward trend. LVS could meet resistance at $18.00, and move over this leevel would be another BUY signal. For the moment LVS upward trend seems to have become wider, and to go back to its previous uptrendig channel, LVS would need to go at least over $20-$21. Today we also got a BUY signal from Wilder's DMI (ADX), after the positive +DI crossed over the negative -DI, just after it gave us a failed sell signal on Friday, when the opposite occured. Finally the stochastic also gave us a BUY signal after crossing up over the signal line, around the same level as back in July where it has support. I have taken a long position today with LVS during at $17.52 with 50% of cash for my max intended position (using my trading strategy Y-Swing 2.0) , with a stop loss set at $16.29, and a BUY trigger at $18.05 to add to my position approximatelly 32.5% of my intended position.

LVS - WAIT (weekly)

When we look at LVS's weekly chart, the story is very different, surprising, and hard to believe. We currently have a rising wedge that seems to be near the end of its pattern. A rising wedge after a major downtrend is very bearish, as 82% of rising wedges break downward. Also after hitting a higher high at nearly $21, the volume has failed to do so as well, giving a a negative divergence. Volume should follow the trend. According to this pattern a break below its lower trend line, would give us a major SELL signal, sending LVS back to its 52 week low that occurred in March. I personnaly have a very hard time to believe this would happen, but this is what the chart indicates. There is always the possibility of seeing this pattern fail, and turn into a completely different one, only the future will tell.

Long LVS @ $17.52 - Stop Loss @ $16.29 - Stop Buy @ $18.05

2 comments:

DBOctober 6, 2009 at 9:07 PM
Yoel,

What is your current take on LVS after today's drop in price?

DG
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YoelOctober 6, 2009 at 10:26 PM
We got a small dark cloud formation with all the gains of the day lost.Thankfully it didn't fall lower than it did, as it would have been a major warning, that would most likele be followed by a SELL signal. Right now LVS is a wait, and like I said yesterday LVS had resistance at $18.00, unfortunately LVS did not manage to hold up. Today's price action is a warning, but it could also be some profit taking after such a big move yesterday. We will know for sure tomorrow where are we exactly heading. I wouldn't be surprised to see LVS settle down for a little just below $18.00.
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TECHNICAL INDICATORS

BUY SIGNAL: Indicates the possibility of the start of a new up trend or the continuation of the current up trend. This signal may be often given in the early stages of a potential new up trend that was preceded by a down or sideways trend. Such signals do not always succeed and may fail at time.

BUY: Indicates that the current up trend is already in motion and a BUY SIGNAL was already given earlier. A BUY does not necessarily indicate that the stock will continue higher from here, but simply that the stock is trending up. The further into the trend you decide to take a long position, the more risk you have of seeing it reverse back down sooner rather than later.

STRONG BUY SIGNAL: Indicates a stronger, more significant and reliable signal than a BUY SIGNAL which usually has less chance of failing. Such signals do not always succeed and may fail at time.

STRONG BUY: Indicates that the current up trend is already in motion and that STRONG BUY SIGNAL was already given.

SELL SIGNAL: Indicates the possibility of the start of a new down trend or the continuation of the current down trend. This signal may be often given in the early stages of a potential new down trend that was preceded by an up or sideways trend. Such signals do not always succeed and may fail at time.

SELL: Indicates that the current down trend is already in motion and a SELL SIGNAL was already given earlier. A SELL does not necessarily indicate that the stock will continue lower from here, but simply that the stock is trending down. The further into the trend you decide to sell a position, the more risk you have of seeing it reverse back up.

STRONG SELL SIGNAL: Indicates a stronger, more significant and reliable signal than a SELL SIGNAL which usually has less chance of failing. Such signals do not always succeed and may fail at time.

STRONG SELL: Indicates that the current down trend is already in motion and that STRONG SELL SIGNAL was already given.

HOLD: Indicates that traders who already hold this stock, should hold on as long as the trend persists. This signal is usually given during an up trend for which it would be considered too risky to take a long position at this point.

STRONG HOLD: Indicates that the current trend has been in motion for a while and rarely deviated away from the trend. Although the stock may continue higher, there may not be enough potential up side to trigger a BUY SIGNAL. This type of indicator usually means that the stock has very strong support levels which may have been tested but not broken.

WAIT: Usually given during a sideways trend for which we are waiting for a move that would trigger a BUY SIGNAL or SELL SIGNAL. This could also indicate uncertainty and the risk that would be taken if you were to take a long position at the current level. Taking a long position after giving a WAIT indicator is considered a gamble.