A Billionaire’s Pick

Exco Resources (XCO) completed a 5 months rectangle bottom by breaking out today with an implied target of $6.70. Stop loss @ 5.54. This may well be a reversal as this stock has been on a downtrend for the last 4 years.

Wilbur Ross Jr., owns almost 25% of the XCO at an average price of $11 ! If you don’t know the guy, well he is just another billionaire. More about him here

If you become a billionaire with XCO, pls send me 1% fee for this idea 🙂

xco

 

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Black Carbon Stocks

First up is Arch Coal (ACI) with a 5 months consolidation rectangle. Watch a close  above $4.80 for an implied target of $5.80. Note that the move could be swift as 20% of the stock float is short.

aci

 

 

Next is Walter Energy (WLT) no pattern here but interesting levels. Note the red line that has been touched four times, twice in 2013 and twice this year.

wlt


Is Berkshire Too Big To Fail?

Since May 2013, Berkshire Hathaway (BRK-B) has been trading sideways.  As a result a topping pattern has emerged and BRK-B is on the brink of breaking down if 109 is breached on a closing basis. Implied target is $100. Furthermore, BRK-B has been trading almost 2 weeks now below its 200 day moving avg (which rarely happens) indicating weakness.

brkb


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


All Aboard The Orient Express

Orient Express Hotels (OEH) is in a 3-months consolidation pattern. The top level of the box corresponds to a resistance level back in 2008, that pushed the stock down 50%. So its obvious that the current box would be significant either way UP (continuation pattern) or DOWN.

-4Q results on Feb 27/a

oeh


QIHU Locked In

The bulls & bears are in a battle on QIHU (QIHU) as it has been trading in an interesting range since late Aug 2013, so its almost 5 months now.  The bulls are buyers at 77 and bears are sellers at 95. Who do you think will win ?

qihu


Hospira Finds Its Path

Hospira (HSP) completed a 2 year triangle thrust in July 2013, indicating a target of $47, which has not been met yet. When a pattern is huge and has a target that seems far away, charts sometimes morph into a continuation pattern which offers a topping or pyramiding opportunity. HSP just finalized a 5-months rectangle which could be the needed pattern to attain the initial target, which measures spot on.

hsp