Wednesday, February 27, 2008

Charts to Watch

A few possible trades for tomorrow. The shorts are dependent upon reactions to earnings - if the reactions are positive, I will simply take them off my watchlist, but with FWLT having a terrible reaction to earnings last week, MDR and FLR are worth watching.

JASO - Swing Long
MDR - Possible Swing Short
FWLT - Possible Swing Shorts
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

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Stock Speculator said...

There's also a large Head & Shoulders formation in the JASO chart; left shoulder on the climaxing peak(11/8), the head being the large rollover at the 25 price level, and the right shoulder being the most recent failed rally to the 50MA(2/13). Honestly it looks more like a short setup to me, especially after the 2 most recently failed rally attempts that hit the 50MA like a ceiling.

Mac said...

I mentioned in the chart for JASO that it is indeed setting up a head and shoulders pattern. I was just pointing out that with the market looking a little more bullish, and along with another bullish reversal at $16, I wouldn't be surprised if it rallies one or maybe two more times up to its 50 day moving average. I don't know that it will, but I think the chances are high. That is where I would want to short it - around $20. If it breaks the neckline here, it may work, but I prefer to short rallies instead of breakdowns - same technique as William O'Neil.