As stated yesterday,
GLD had a good run-up but failed to get past the resistance level for a couple days. A stop limit was placed at 181.55 which was hit yesterday for a 2.77% or $489.00 paper trade gain in 8 days. We also have a negative crossover of the SS.
We also put stop limits at the 9-day SMA for XLU that executed below the cost bases for a 1.12% or $75.00 loss. The RSI moved below the 50 level and the Stochastic had a negative crossover. The trading guidelines got us out of this position with minimal losses.
SLV found resistance at the 50-day SMA for the second day. All the oscillators are in the green, but we are seeing a slight downtrend in the RSI. Stop limits will be placed above the cost basis to preserve the gains in the event the market moves against us.
LLY closed below the 50 and 200-day SMAs after failing to move past the resistance level which is the 50 SMA. Some traders would have set stop limits at the 200, however it would be prudent to set them around the support level at 326.30 which is also where the 9 and 20 are converging. If this level is executed, we will still exit with a gain.
ABBV closed up .42% above all the critical SMAs and with the oscillators in the green. Support will be at the cost basis of 154.55 followed by the 9 / 20 SMAs. Upper-level resistance will be at 159.68 where a sell limit could be placed.
CPB was down yesterday and wicked down to just above the 9-day SMA. We see a negative crossover of the Stochastic which could be an indication of a trend reversal. Stop limits could be set just below the 9 and above cost basis to preserve gains or if more risk adverse, a trader could wait for a full candle close below the 9 and risk a small loss.
The Horizon List is our “Bullpen” for potential Swing Trade Stocks.
LLY was on the Horizons list and graduated to the watchlist on 3-14.
TMO is another stock that just graduated to the watchlist. Yesterday, TMO had a full candle close above the 9-day SMA. It is also trading above the 200-day SMA, and all the critical oscillators have now turned green. Price action is currently above the resistance level 560.66.
If it can maintain above this level, the next resistance will be the 50 SMA at 565.52. Downside support will be at the 20 EMA @ 553.74. Stops should be placed above your cost basis in case the trade goes the wrong way after the FOMC press conference.
This information is for educational purposes only and is not a recommendation to buy or sell a security.
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