The Russell 2000 index has been
trading between the 100dma and 200dma range. We are in range bound market as
long as stocks roam around this area. Both market leaders
IWM and QQQ are forming a potential head & shoulder topping pattern. A
breach below $84.50 for QQQ could give us a good short signal. My goal is to
find stocks that are at support or resistance, and then sell / buy based on
market directions. Next week, I am focusing on finding stocks at resistance,
especially those with double whammy resistance.
IWM:
QQQ:
Auto Sector:
GM (General Motors Company)
printed a big red candle after
earnings on April 24th. It closed at $33.72 on Friday, just below the
horizontal resistance and the 20dma (double whammy) around $34. A drop below
Friday's low ($33.55) could trigger a fall to the next support at $31.
System Software Sector:
ADSK (Autodesk Inc)
dropped below the 17dma. The
bounce created last week was a perfect bull trap. It is likely that the 17dma
will continue to put a top on the stock price till it finds support at around
$42.60.
Financials:
ETFC (E* Trade Financials)
flirted with the green trend
line and dotted horizontal resistance (double whammy) after earnings on April
23rd. The latest two red hanging man candles near $23 could be the retest
before it plummets to $19.60, or 12% below Friday's close $22.4. Ideally, we want to see a bounce on Monday AM
to $22.9ish for good short entry. Pay attention to the latest volume profile.
Thanks for reading, and have a good week.