Connect with us

Recommendations

These stocks can extend their uptrend

Published

on

The S&P 500 has broken out to new lifetime highs and has closed above the critical psychological resistance level of 2500, albeit marginally. Nevertheless, the index is likely to gain momentum from here on, extending its aging bull market gains, as the shorts will be forced to cover.

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

Key points

  1. The S&P 500 has broken out of the critical overhead resistance level of 2500
  2. Stronger stocks are likely to outperform if the index continues higher
  3. However, at these elevated levels, traders should enter stocks only if the risk to reward ratio is attractive
  4. Allocate less than 50% of the normal position size while trading pure momentum plays

Therefore, this week, we have selected a few stocks that have broken out to new highs and are likely to extend their gains along with the index. However, traders should keep in mind that the markets are richly valued at the current levels and can quickly turn down from here. Therefore, please close the long positions if the stop loss is hit.

Also, as the stocks rally, please keep trailing the stop loss higher to protect the paper profits.

BA – Buy 250, SL 236, Target 265 and higher

Weekly chart

// -- 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 -- //

Boeing started an uptrend in end-2016 after consolidating for about three years. It gained momentum once it broke out to new highs in 2017. Since then, the stock has been in a vertical rally, outperforming the index, which has pushed the RSI into the overbought territory.

Nevertheless, after consolidating for the past few weeks, the stock again broke out to new highs last week. We expect the uptrend to continue, therefore we want to piggyback on it for quick gains. Let’s look at the critical levels to watch out for.

Daily chart

Boeing broke out to new highs on Friday. The consolidation of the past few weeks has corrected the extreme overbought conditions on the RSI. With the latest breakout, we expect the stock to resume its uptrend and rally to $265 levels. The stock can easily surpass its target if the momentum sustains. Therefore, traders can enter at $250 and keep a stop loss of $236. This trade offers a risk to reward ratio of 1:1.

NSC – Buy 128, SL 120, Target 140

Weekly chart

The stock bottomed out in February of last year and rallied until February of this year. Thereafter, the stock entered a period of consolidation that lasted for almost seven months. Last week, the stock broke out of the stiff overhead resistance of $125, which shows that the bulls have regained their strength. We now expect the stock to resume its uptrend.

Daily chart

On Monday of the previous week, the stock broke out of $125, which had been acting as a stiff resistance. Thereafter, it extended its gains during the remainder of the week. This shows that the bulls are willing to buy at higher levels. We can buy the stock at $128 and keep a stop loss of $120. We don’t want to hang on to the stock if it falls back into the range. The first target objective is $140. This trade carries a risk of $8 and a probable reward of $12, if it performs according to our expectations.

MED – Buy 57, SL 54, Target 68

Weekly chart

The stock has a history of vertical rallies, as shown on the chart. This time too, the stock has embarked on a similar sharp up move. Therefore, we want to hop on this ride, expecting it to continue higher. If proven correct, this can be a rewarding trade. However, historical evidence shows that the stock falls sharply once the uptrend ends. Therefore, please strictly adhere to the recommended stop loss.

Daily chart

The stock rose vertically from $42.12 on August 08 to $56.41 on August 18. Thereafter, the stock entered a shallow correction, which was arrested just above $54 levels.

If the stock breaks out and closes above $57, the next leg of up move can carry it to $68 levels. As this is a pure momentum play and has a history of correcting sharply from its highs, we don’t want to keep a deep stop loss. Our stop loss should be below the recent swing lows, at $54. Please trail the stops higher as the stock continues its journey northwards. The risk is $3, while the reward is $11. However, this is a risky play, therefore, please trade it with only 50% of the normal allocation size.

MYOK – Buy 48, SL 40, Target 70

Weekly chart

In the past two months, the stock has almost tripled in value. This shows a very strong momentum in its favor. As a result, the RSI has become extremely overbought. However, the correction only lasted for two weeks, which shows that the bulls are piling on the stock on every small dip. The stock is likely to resume its uptrend once it breaks out to new highs.

Daily chart

After being range bound for most of 2017, the stock broke out with a huge gap up on August 07 and has never looked back. It has almost tripled in value since then, which shows the strong momentum behind it. After a shallow correction, which was arrested just above $40 levels, the stock is on the verge of a breakout to new highs once again.

The stock can be purchased at $48 and the stop loss should be maintained at $40. We don’t want to hold the stock below this level. On the upside, the stock can rally to $70 levels if it can build up momentum once again. However, we recommend trailing the stop loss higher once the stock moves up as it is a high-risk trade. Also, please keep the allocation size small, about 50% of normal.

PEGI – Buy 26.3, SL 23, Target 31

Weekly chart

The stock has not broken out to new lifetime highs; however, it is quoting at its 52-week highs. We like the stock because it has broken out of a bullish ascending triangle pattern, which has a target of $31.59. The stock offers a decent risk to reward ratio, therefore, we want to buy it.

Daily chart

Usually, a breakout pulls back and retests its earlier resistance level, which in this case is $25.13. However, sometimes, the breakout continues higher and never looks back. If the markets remain bullish, we might not get a pullback.

Therefore, we want to buy the stock at $26.3 and keep a stop loss of $23. We don’t want to hold the stock if it falls and sustains below $25 levels. Our target objective is $31. The risk is $3.3, while the probability of reward is $4.7. This is not a momentum play; hence, this is likely to rise slowly.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is concidered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...



Feedback or Requests?

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Recommendations

Trade Recommendation: Bitcoin

Published

on

This is a short term trade. The trading idea is based on a trend reversal signal. The double bullish divergence tells us that probably the market will bounce from the support and start a new uptrend. MACD lines support this idea and DMI allows opening long trades. Entry level is 10400.00 with stop orders at 8910.00 level. Profit targets are 12000.00 and 15000.00 levels. The part of trade volume can be left for long run. Please, note the market has potential for dropping lower. Use stop-loss orders and proper risk management strategies. If you don’t use leverage, trading volume for this trade is up to 10% from your deposit.

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

Market: BTCUSDT
Buy: 10400.00
Stop: 8910.00
Profit Targets: 12000.00 and 15000.00

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

// -- 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 (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is concidered a failure either way.
4 votes, average: 2.50 out of 54 votes, average: 2.50 out of 54 votes, average: 2.50 out of 54 votes, average: 2.50 out of 54 votes, average: 2.50 out of 5 (4 votes, average: 2.50 out of 5)
You need to be a registered member to rate this.
Loading...



Feedback or Requests?

Continue Reading

Recommendations

Trade Recommendation: Riecoin

Published

on

On June 11, 2017, the Riecoin/Bitcoin pair reached a high of 0.000097. Unfortunately for market investors, the pair generated a bearish lower high of 0.000094 on June 19. The market went in a downtrend on June 27 when it broke support of 0.000068.  Since then, the Riecoin/Bitcoin pair tumbled to one lower low after another.

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

It took the market around four months to find support at 0.000006. The market consolidated at that level until November 26 when volume and price suddenly surged. In a span of two days, the pair went from 0.000009 to 0.00002357. The market has been rallying since.

Technical analysis show that the market has created a bullish reversal pattern that relies on taking out resistance at 0.000036. The market may have closed above this level on January 11, but it did so while in extreme overbought territory. A pullback was in order to keep the ascent sustainable. This dip is an opportunity for you to enter the market cheap.

The strategy is to buy as close to 0.000021 as possible. If the market holds this level, it creates a bullish higher low that can serve as springboard to take out resistance at 0.000036. Create a new higher low, and we have targets of 0.000036 and 0.000068.

// -- 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 -- //

Daily Chart of Riecoin/Bitcoin on Poloniex

As of this writing, the Riecoin/Bitcoin pair is trading at 0.00002227 on Poloniex.

 

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is concidered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...



Feedback or Requests?

Continue Reading

Recommendations

Trade Recommendation: Golem

Published

on

The Golem/Ethereum pair lost all bullishness on May 28, 2017 when it generated a lower high at 0.003233. Extreme bearishness immediately followed as the market broke support at 0.0021 two days later. The pair posted one lower low after another until it established support at 0.00052 on November 24. In less than six months, the market lost around 85% of its value.

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

The furious plunge eliminated most of the sellers in the market. That’s why the pair immediately bounced after finding support. It went from 0.00052 to 0.00140398 in about five weeks. Unfortunately, bears exploited the rapid ascent as they took profits at 0.0013 resistance. As a result, the market retreated.

Technical analysis, however, suggest that the market is forming a bullish higher low. The long wick below the body of the January 16 candle indicates the presence of buyers at 0.00058. In addition, RSI seems to respect support at 36. Also, volume has been declining for the last seven days which hints that sellers are losing ammunition.

The strategy is to buy as close to 0.00058 support as possible. The market is still in sideways consolidation so our target is the top end of the range at 0.0013.

// -- 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 -- //

Daily Chart of Golem/Ethereum on Poloniex

As of this writing, the Golem/Ethereum pair is trading at 0.00065142 on Poloniex.

 

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is concidered a failure either way.
2 votes, average: 2.50 out of 52 votes, average: 2.50 out of 52 votes, average: 2.50 out of 52 votes, average: 2.50 out of 52 votes, average: 2.50 out of 5 (2 votes, average: 2.50 out of 5)
You need to be a registered member to rate this.
Loading...



Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending