• ACI - Apr 15 201520150415
  • ALGT - Apr 29 201520150429
  • ALK - Apr 29 201520150429
  • AVL - Mar 23 201520150323
  • AXU - May 15 201520150515
  • BRKB - May 18 201520150518
  • $COFFEE - May 27 201520150527
  • EA - May 11 201520150511
  • EC - Apr 06 201520150406
  • GDX - May 26 201520150526
  • GDXJ - Apr 23 201520150423
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  • HA - Apr 29 201520150429
  • ILMN - Dec 02 201420141202
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  • JO - May 27 201520150527
  • LUV - May 01 201520150501
  • MM - May 15 201520150515
  • NUGT - May 26 201520150526
  • ROST - Apr 01 201520150401
  • SAVE - Apr 29 201520150429
  • SGG - Apr 02 201520150402
  • SMTC - May 28 201520150528
  • SPG - Apr 30 201520150430
  • $SUGAR - Apr 02 201520150402


Trade Setups

Trade Setups are potential trade or longer-term investment candidates that are setting up in a well defined chart pattern. Once/if the pattern triggers (i.e.- a break-out or break-down), the trade idea will become an Active Trade until either the price target(s) are hit or the trade is stopped out. However, some Active Trades will also remain in the Trade Setups category after triggering an entry as long as the trade still provides an objective entry. Therefore, many trades on this site will often be assigned to multiple categories.

May 282015
 

SMTC (Semtech Corp) did go on to punch thru the bottom of the aforementioned trading range as I had suspected it might. Although I'm still going to hold off adding SMTC as an official trade idea, I went ahead and decided to take a relatively minor position.

In my previous post, I had mentioned that a break below the trading range shown on the daily chart would set up bullish divergences on the stock but what I was not clear on was that I was mainly referring to the weekly chart although Semtech is also poised to print a divergent low on the daily chart as well, as long as prices don't fall too much (thereby printing lower lows on the MACD and/or RSI).

SMTC weekly May 28th

SMTC weekly May 28th

Essentially, we now have what I like to refer to as potential positive divergences in place on both the daily & weekly time frames. To be more specific, I consider (positive) divergences as potential when the momentum indicator(s) or price oscillator(s) that I am watching are making a higher low while prices make a lower low but the indicator/oscillator is still heading lower (i.e.- a negative slope).

SMTC daily 2 May 28th

SMTC daily 2 May 28th

On the MACD, for example, I consider the divergence in place once/if the MACD makes a bullish crossover and starts heading higher (positive slope). With the RSI, I consider the divergence as in place if/when it turns back up after printing a higher low (vs. the price of the stock printing a lower low). Therefore, with both the MACD & RSI still moving lower, we only have potential bullish divergences in place at this time. However, being that SMTC is now at the top of a weekly long-term support zone, very oversold in the near-term and has potential bullish divergences forming, I view a long position here with a stop somewhat below the bottom of that weekly support zone (19.50) an objective long entry if targeting the upper end of the 2014-2015 trading range. One could also use a more aggressive stop of 20.00 or higher, only targeting the middle of the 2014-2015 trading range (24.50 area), which would provide an R/R of 3:1 or better.

I may decide to add to this position, should SMTC continue lower towards the bottom of the weekly support zone (19.50ish) or I may just take profits if the stock experiences a sharp snap-back rally in the coming days/weeks. However, SMTC will remain an unofficial trade idea at this time although I will likely post updates on any significant technical developments.

 May 28, 2015 2:09 pm  Long Setups Tagged with:
May 282015
 

-+*For the past year & a half, going long SMTC (Semtech Corp) while at the bottom of this trading range (bottom white line) and/or when the stock became oversold (RSI 30 or less) has proved to be a timely entry for a long-side bounce trade. [continue reading…]

 May 28, 2015 10:47 am  Long Setups Tagged with:
May 152015
 

-+*The MM (Millennial Media) long trade setup has triggered an entry on a break above 1.79 today. T2 remains the final target at this time with suggested stops of 1.71, if only targeting T1 (2.07) & 1.54 if targeting T2 (2.84)

 May 15, 2015 11:08 am  Active Trades - Long, Long Setups Tagged with:
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