Connect with us

Recommendations

Buy These Stocks to Leverage Reversals

Published

on

Asian stocks mixed

The S&P 500 Index has been on a tear since November of 2016. While many investors remain bullish on the index, technical analysis reveals that bearish patterns are emerging. A correction in the coming weeks after a year of unstoppable growth should be healthy to sustain the uptrend.  Investors and traders are advised to be cautious, and watch their trail stops carefully as technical indicators show that the index is extremely overbought.

// -- Discuss and ask questions in our community on Workplace.

When the market is overbought, the strategy is to move away from stocks that have significantly moved up and favor names that are flashing signs of trend reversals. These stocks are most likely near strong support levels with tremendous upside. Here are two names following that theme.

AKAM – Akamai Technologies Inc.

AKAM has rallied from a major support level at 45 and is now looking to breach resistance at 54. The stock may still slide as 54 is a psychological resistance. When it does, look to pick up the stock as close as 52. This slight dip is ideal to prepare the name for a sustainable breakout. On the other hand, a breakout at 54 with a daily volume of at least 4 million should validate the move.

Initial target for the breakout is 64.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

For long term investors, there’s an opportunity to make a considerable profit. AKAM has been on a corrective phase since August of 2015 when it hit the top if the range at 77. However, technical indicators show that the correction has come to an end and the stock is ready to resume the uptrend. A move above 54 with heavy volume supports this assumption.

Should the breakout happen, long term investors can hold on to the name and see whether it can break the major resistance at 77. The move up will attract momentum investors and take the stock to 157. This is a great opportunity to earn serious profits.

This view is valid as long as support at 45 holds.  

Weekly AKAM Chart

Weekly Chart AKAM

Monthly AKAM Chart

Summary of Strategy

Buy: Breakout at 54 with volume or wait for stock to slide at 50 – 52

Support: 52 first, 50 next, and 45 last

Resistance: 64, 70, and 77

Targets: 64 and 157

Useless: Only when support at 45 is broken

APC – Andarko Pete Corp.

APC is another name that has rallied from a major support level. The stock has been on a downtrend since September of 2014, but it is looking to reverse its fortunes soon. A bounce at 40 shows that the support level is being defended. Now, the stock is looking to breach 51 to continue its move up.

To sustain its momentum, APC must stay above 51 with 9 million in volume. Maintain this level and we get to 62 first and 65 next. Long term investors can hold to the name and see if it can break major resistance 71. If it does, the next target is 94.

This view is negated if the stock breaks major support at 40.

Weekly APC Chart

Monthly APC Chart

Summary of Strategy

Buy: Breakout at 51 with volume

Support: 48, 45, and 40

Resistance: 62 first, 65 next, and 71 last

Targets: 62 and 94

Useless: Only when support at 40 is broken

Featured image courtesy of Shutterstock. 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Cryptocurrencies

Trade Recommendation: Siacoin

Published

on

The trading idea is based on a breakout above the downtrend line and the previous swing high. If the market moves about it, we will get a signal confirming further upward movement. Also MACD lines and DMI give bullish signals. It’s a new trading opportunity. Pending orders for buy should be placed at 0.00000062 level with stop orders at 0.00000048 level. Profit targets are 0.00000075 and 0.00000100 resistance levels. If you don’t use leverage, trading volume for this trade is up to 10% from your deposit.

Market: SCBTC
Buy: 0.00000062
Stop: 0.00000048
Profit Targets: 0.00000075 and 0.00000100

// -- Discuss and ask questions in our community on Workplace.

The trading signal is based on Poloniex chart.
Disclaimer: The analyst does not have investments in Siacoin.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Recommendations

Trade Recommendation: GBPJPY

Published

on

The market moves between 150.00 and 148.00 levels. DMI confirms range market conditions. Now the price bounces from 148.00 support level and RSI confirms price reversal in the oversold zone. MACD histogram supports upward movement. It gives us a new trading opportunity. Pending orders for buy can be placed at 148.28 level with stop orders at 147.90 level. Profit targets are 148.80 and 149.30 levels. Don’t risk more than 3% from your deposit in this trade.

// -- Discuss and ask questions in our community on Workplace.

Market: GBPJPY
Buy: 148.28
Stop: 147.90
Profit Targets: 148.80 and 149.30

Disclaimer: The analyst does not have investments in GBPJPY.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //
Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Altcoins

Trade Recommendation: Enjin (ENJ)

Published

on

Enjin Coin has recently finished its ICO and is currently available on a few exchanges. The primary metric to look at is the market cap of a company, especially after the initial exchange selloff. Most ICO investors are looking for a coin with a small market cap so that they can get 2x – 5x return. Enjin Coin has a very low market cap at the moment in relation to the maturity of the company. This will be a great candidate to swing trade. There are four reasons this coin is a swing trade candidate besides the fact that it has dipped to previous lows and is a great buy at the moment.

// -- Discuss and ask questions in our community on Workplace.

1. Enjin currently has a contest running on Binance.com that will pay large amounts of ENJ tokens  to the top holders during the competition. This ends on November 25th. Basically, you just have to buy ENJ on Binance and hold it until the end of the contest. The top holders will be rewarded. Here is the contest info: Enjin Binance Contest

2. Enjin is releasing its Mobile Smart Wallet as well as the Minecraft plugin soon. This will allow game developers to use ENJ in the gaming community.

3. The chart shows the MACD crossing upward over the EMA 9-day signal indicating another bullish run.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

4. Enjin could be compared to GameCredits, which is currently trading on Bittrex. GameCredits has a market cap of $123,000,000; DigiByte has a market cap of $85,000,000. If Enjin only reached the market cap of DigiByte that would be a 5x ROI and if it reaches GameCredits’ market cap then investors would see an ROI of 8x. For the short term, the entry point is 0.00000265 BTC with a stop loss order placed at 0.00000242 with a profit target at 0.00000318 BTC.

Market: ENJ/BTC
Buy: 0.00000270 BTC
Stop: 
0.00000248 BTC
Profit Targets: 
0.00000324 BTC – 0.00000328 BTC

If your profit target hits 0.00000324 BTC, you will have made 20% return.

Disclaimer: The analysis is invested in ENJ.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Trending