Stock Trading Predictions & Technical Analysis

Saturday, March 13, 2010

FL - Trades above its Weekly 200 day MA for the First Time in Over 2 Years

FL - BUY SIGNAL

After trading sideways between $9.00 and $12.00 for roughly a year, FL has started to make a strong move up about 3 weeks ago when it broke through its key resistance of around $12.00. FL has also been experiencing relatively higher than average volume which is required for this trend up to continue. Despite having a BUY SIGNAL since 3 weeks ago, I decided to take a long position with FL on Friday after getting a BUY SIGNAL from the daily Stochastic which also shows that FL has relatively still some space to move before pulling back. The daily stochastic currently stands around 70 which is still below the overbought territory of 80 and up. The 20 day MA which is depicted by the dashed line of the Bollinger Band is currently FL's strongest support level. FL has managed to stay above its 20 day MA ever since it broke through it 3 weeks agos. Another bullsh sign for FL, is the fact that it managed to close at the highs of the day.

When we look at the weekly chart we can see that FL has broken up above its 200 day MA for the first time since July 2007 when it broke below it. This is very significant as FL has been trending down for the past 2-3 years, and only now are we starting to see the trend shift. The challenge however is to see whether or not FL can maintain its position above its weekly 200 day MA by the end of next week. Another challenge is the fact that the weekly Stochastic is in very overbought territory at 96. However, this doesn't necessarily mean FL will be moving back down very soon, as I have seen stocks continue moving higher while the Stochastic stayed and continued to trend around the overbought level. Keep in mind that stocks that usually trend in the overbought level (e.g. between 60 and 100) is a sign of strenght and usually means the stock is trending up. This has not been the case for FL as it been trending between oversold and overbought territory for the past 2-3 years. Another positive sign for FL is the fact that the upper Bollinger Band has started to trend up, while the lower Band should soon follow if the trend up continues. Finally, I believe that if FL can manage to either stay above its weekly 200 day MA or move even higher by the end of next week, FL would have strong potential to go as high as around $17.00 where its next significant resistance level stands. Aside from this $17.00 level there is very little reistance in FL's way to prevent it from reaching it, and the daily Stochastic's low level leads me to believe that it could reach this price soon. A break above $17.00 could eventually send FL towards $20.00. However, I would first expect a pullback around $17.00 followed perhaps by a sideways trend before it can reach the $20.00 level. FL had first given us a BUY SIGNAL 3 weeks ago after breaking above the $12.00 resistance level, and on Friday we were given a 2nd BUY SIGNAL by the daily Stochastic as well as by seeing FL break through its weekly 200 day MA.

LONG FL

Tuesday, March 2, 2010

F - Dark Cloud

F - SELL SIGNAL

Although F has been in a major up trend since early November, F has given us a minor SELL SIGNAL today with a dark cloud pattern. The current major up trend is still intact and will remain so as long as stays above its 50 day MA, however the dark cloud pattern does lead me to believe that F will shortly start pulling back as low as around $11.75, $11.45 and $11.15. Basically, what I'm saying is that I believe that there will be an opportunity to get in lower around these levels, once F bounces back up one of them, of course. The stochastic has also given us a SELL SIGNAL today, which strengthens the possibility of seeing a pullback. F is now a WAIT for a BUY SIGNAL. If you are long F, you may consider exiting your position now to perhaps get back in at a cheaper price if you wish to do so. I believe that there is a good chance F will break just below $12.00 tomorrow or Thursday. If F manages to close above today's high of $12.68 tomorrow, the dark cloud pattern will be considered to have failed.

HAS - Flag Pattern Confirmed?

HAS - BUY SIGNAL

As indicated last week, HAS was in a potential flag pattern which started breaking upwards today, and thus gave us a BUY SIGNAL. If HAS manages to maintain these gains above $36 and continue higher tomorrow, the flag pattern will be confirmed. If the pattern is confirmed, we could expect a price target as high as $40.00 before seeing the next pullback. The wide and upward trending bollinger bands does indicate that HAS has indeed space to move higher. HAS strongest resistance levels, currently stand at $38.00 and $40.00.

LONG HAS

DISCLAIMER

The analysis and information given on this site is for information purposes only. Trading in these strategies may result in capital loss. Individuals should do their own independent research or consult an investment advisor before taking investment action. All materials on this site, including the stock picks, are for news and entertainment purposes only and are provided on an "as is" basis and without warranties of any kind, either express or implied.

Under no circumstances will yoel stockpredictions.blogspot.com be liable for any special or consequential damages that result from the use of, or the inability to use, the materials in this site, even if advised of the possibility of such damages including, but not limited to, negligence. In no event shall yoel-stockpredictions.blogspot.com have liability to you for any damages, and losses for accessing this site or using the information provided.Yoel-stockpredictions.blogspot.com does not guarantee that the information contained herein or distributed from this site will be uninterrupted or error-free, that defects will be corrected. Past Results are not necessarily indicative of future performance.

Yoel-stockpredictions.blogspot.com does not trade against you. Some sites are using the size of their visitors to 'move the market' and take advantage personally with their stock picks. This is illegal, and mostly applicable in smaller less liquid securities, which are not covered on this site. It is highly unlikely that the articles in this site about stock picks could ever move the market.

As a visitor to this site, you acknowledge and agree that any reliance on or use by you of any information available on this site shall be entirely at your own risk. In no event shall yoel-stockpredictions.blogspot.com be liable for any direct, indirect, consequential or exemplary damages arising from the use or the performance of this site, even if will yoel-stockpredictions.blogspot.com has advised of the possibility of such damages. Trading may not be suitable for all visitors of this site or the information provided by this service. The visitors assume the entire cost and risk of any trading they choose to undertake.

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.