Metal Vs Miners

Silver Miners (SIL) broke out a 2 months Head & Shoulders bottom in mid January signaling that a reversal of trend was in place. Problem is Silver metal (SLV) did not confirm the pattern or the reversal in that case, instead the metal continues to trade in a tight range rectangle. A continued drop in equities in general plus a breakdown of Silver from its rectangle could spell trouble for SIL. A further sign of weakness is the throwback of SIL to test the H&S bottom neckline at 11.80.

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silvvsminers

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Mellanox For 2014?

Mellanox Technologies (MLNX) has been on a strong downtrend since Sept 2012, erasing over 60% of its market cap. Recently MLNX completed a 5-months Head & Shoulders Bottom on 2.5x avg daily volume, indicating a target of $52. Stop loss @ 40

mlnx


HP’s History With Level 28

Hewlett Packard (HPQ) almost completed a 2+ year H&S bottom with a neckline at 28, a significant level throughout HP history. Looking back at 2005, a similar pattern formed and the 28 level was also the major resistance point. Furthermore, in 2009, the 28 level provided support and HP bounced off reaching new highs. A decisive close above $28 would complete the pattern and indicate a target of $43.

 

hp


Bazaar Breakout Level

Bazaarvoice (BV) broke-out mid 2013 after completing a 6 months rectangle bottom and reached its target and more. After that BV went into a downtrend. Today a 6 week H&S bottom is underway in which the neckline happens to be the same level of the previous years’ rectangle at 8.15. Initial target is $9. But this time caution is needed as there is a Gap from November which usually acts as a resistance zone. Stop loss @ $7.90 as per LDR

Best to your trading!

 

BV


Midstates Petroleum Base

Midstates Petroleum (MPO) has almost completed a 8-months H&S bottom with a neckline at 6.62. This may well be a reversal pattern as MPO has been in a downtrend since its iPO last year.

On a different note, ebook requests are open for the next hour only. Send me any trade related books (with an amazon link) you want on theartofchart@gmail.com and i will send it to you FREE in ebook form (pdf/epub) by the end of the week (IF i have it).

 

 

 

mpo


A Guide To American Houses

Now that the FED is out of the way, lets look at a couple of related ETFs, first up is Homebuilders etf (XHB).

Note the bull trap last month. Now its possible that the 6-months symmetrical triangle is close to another breakout with no bull traps (god willing). Target is $35.

xhb

Here on the Home Construction (ITB) we have a continuation H&S bottom pattern that is almost complete with a neckline at 23.90. Interestingly the right shoulder has morphed into an ascending triangle giving the pattern some more power to break out. Target is $26.50.

itb


Getting Some Oxygen Before A 300% Surge

NO, this is not a scam post that promises you 300% return on a penny stock..but close. This is about finding the stock that may be starting to move.

There are 3 ways that you would have bought Oxygen Biotherapeutics (OXBT) last week and tripled your money.

1. Getting insider information

2. Buying OXBT because it was listed on the top gainers

3. Scanning stocks for unusual volume.

Volume usually preceded price and is a leading indicator. Using finviz scans unusual volume you would have find OXBT on Oct 30th, noticed a 3 months H&S bottom pattern and went long Oct 31st.

OXBT Daily

OXBT Daily