Potentially another up day for the market tomorrow as indicated by QQQ for the following reasons
Follow through on correcting elliott wave, steps A and B completed looking to make a move on C
Cup type pattern forming, watch the development early tomorrow
Potential for reverse head and shoulders pattern, if follow through happens a potential trend reversal?
Although not a very financially strong company, look for a short term momentum trade on this reverse head and shoulder breakout if it can break the downward trend line on higher volume in the next day or two.
Short term swing opportunity on ZUMZ.
Just broke out of 9 month downtrend with a 3 month base.
Weak fundamentals, so short term trade
Trade targets on chart
Reasons to Buy
Strong Annual Earnings
Strong volume buildup
Leader in a top industry
Strong compared to SPY
Strong pattern (See chart for details)
Reasons to tread with caution
Market not in an uptrend currently
Week could close below breakout point
Prior uptrend not above 30% (but strong uptrend overall suggests this is ok)
Reasons to buy
Strong Earnings in last quarter
Strong Earnings in past 3 years
Strong volume indicating buys buy institutional investors
Strong compared to S&P500
Confirmed Double Bottom (see chart for details)
Within 5% of buy point
Reasons to tread with caution
Not necessarily a game changing company (opinion)
Not in a leading industry
Market...
GDX has created a double bottom and confirmed the pattern today. Looking for an increase of middle peak - lowest point * .66 + breakout, or a target around $23.59. Obv also broke out of negative trend, indicating a bullish future.
Linked in created and inverted ascending scallop -- confirmed. (thepatternsite.com). A bonus is the U-shaped volume with the pattern.
This alone sets the target price at 279.25.
In addition, a cup and handle is in the process of forming, which if successful, sets an intermediate target price at 263.
On Balance Volume (OBV) also remains in a very positive upward trend.
ADEP, or Adept Technology, is a robotics company focusing on industrial automation, as well as software and vision guidance. Recently caught in a downtrend, ADEP seems to be making a reverse head and shoulder pattern, which could be confirmed within the next week. On the 15 min chart, there is also a cup and handle forming which if confirmed, could trigger a...
Inverted Ascending Scallop with target at around 214 and stop at point C.
Not sure about price buildup to the scallop, and yet to confirm pattern with a close above point B.
The downtrend prior to scallop may be a little small compared to scallop itself.
Pattern Info from (thepatternsite.com)
