Three Ideas For Your Afternoon Trading
Abbott Labs
(
ABT |
Quote |
Chart |
News |
PowerRating) has continued its
intraday weakness after receiving FDA approval late Friday afternoon. This
“positive” news has been greeted by investors selling on the session.
ABT was a Connors News Reversal short candidate earlier today, but did not
trigger due to the fact that the stock has been trading down the entire day.
Technically, this implies real weakness in the stock, and with the stock trading
below recent support levels, we would anticipate to trade ABT from the short side
on intraday setups. If the stock can trade above the prior support levels shown,
reversal entries such as 1,2,3s may be investigated.
The Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating) is forming a Slim
Jim consolidation intraday, beneath an important high from Dec. 2.
This pivot high is 90.85. Long plays out of today’s consolidation on breakouts
should be aware of this resistance point. From the short side, a failure or
breach of today’s intraday consolidation could produce short entries with stops
placed at either session highs or at the December pivot high.
In the Gold sector, Newmont
(
NEM |
Quote |
Chart |
News |
PowerRating) and Royal
Gold
(
RGLD |
Quote |
Chart |
News |
PowerRating) are two stocks testing recent 52 Week Highs. Both issues
have been consolidating in higher trade today. Entries at this time would be
best from the long side on either pullbacks from highs or break outs of
consolidations. Keep an eye on the daily chart for failure to penetrate recent
highs. If demand starts to fade at these levels, then strategies from the short
side may be investigated. The chart below is of Royal Gold, which due to the
similarities in both charts on both an intraday and daily basis, is being
used as a proxy for Newmont as well.
