Michael Gable is an expert guest commentator for the stock market newsletter thebull.com.au.
This post is an extract from the newsletter dated 18 April 2017. You can access the full version of the article HERE.
During the last few months WHC formed a symmetrical triangle on the chart as the stock consolidated the big move from 2016. With the stock recently closing above $3 on higher volume, we have now seen the stock breakout from this triangular consolidation. This breakout means that WHC should now rally to at least the mid $3’s. Traders should place a stop just under the breakout zone.
From the end of 2013 to early 2016, AUB corrected against the long term uptrend, falling from nearly $13 to about $8. It then broke that short term downtrend in May last year and started trending higher again. During the last part of 2016 and early 2017, we can see it taking a breather, forming a symmetrical triangle. The last few weeks has seen it break out of this on good volume and we expect AUB to now head to a new high.
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After their February results, GTY formed a bullish engulfing candle on a weekly candlestick chart, signifying a possible reversal of the downtrend. Since then, the stock has traded in the top half of this candle – which is also a bullish sign. With the stock now breaking above resistance at $2.15, we should now expect a quick move to at least $2.30. If it can clear that then it should be able to meander back up towards strong resistance near $2.70.
While FLT may have some structural problems, the market at the moment seems happy to push it higher. It appears to have broken above a falling wedge on good volume. It should now at least head to the base of the wedge which is near $34 in the short term. At this point we would consider moving FLT to a sell recommendations.
We recently saw DWS break under support near $1.55 on increased volumes. It should now continue to trade lower here, with support coming in near $1.45. If that cannot hold, then we expect it to fall towards $1.35.
HVN recently broke some obvious trendline support and with uncertainty around their financials, the market is going to find it tough to buy into. We can see support near $3.75 and favour a drop into that region. If that level cannot hold then we can see levels potentially as low as $3.20.
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