BAC is consolidating at $18.4 region, awaiting a strong move upwards or downwards. Looking at this chart pattern, it has formed a head and shoulder pattern, very subtle indeed. I think a downward move is more likely.
The 50SMA will be a good buying support level. That is $17.30
Alcoa Inc might possibly head upwards abit to $14.40 and complete the right shoulder of this subtle head and shoulder pattern too.
Similar pattern, this stock failed to continue its rally upwards despite its fantastic earnings. This is a red flag for most commodities stocks.
United States Steel might also be in trouble even though CNBC’s STEVE managed to pumped it after hours.
The earnings has to be SUPER FANTASTIC for this stock to rise upwards. Obviously, it is highly unlikely that they are going to report phenomenal earnings. However, their guidance are going to be fantastic. PUMPERS include the reputable GOLDMAN SACHS and Deutsche Bank. Most probably, it will be slightly weak as investors are afraid of DEJAVU of the previous earnings calls. For the past 3 earnings release, the stock plunged almost 5%. The worst one being Q3 earnings release, the stock dived downwards from $44 to $35
Today’s chart pattern is very bad, it looks like a repeat of many previous candle sticks that are bearish.
CLF made an incredible jump upwards today on almost no news. BUY SIDE analyst are pumping it to its earnings.
If I had some extra cash, I would short about 1% of my portfolio in CLF at this price. Today’s chart is a death knell. It forecasts a possible drop in the near future to at least $60.
The spread between CLF and X has over widened…. I am a shorter of CLF here. Remember, only short 1% of your portfolio! This is extremely high risk as CLF might do some wierd magic and jump to $80. But I highly doubt so.
Okay, this it. I have closed all my positions. I am only NET short X and very small short CLF.
1 comment:
All good points. Not sure about the head/shoulder formation on BAC though.Most of the indicators are close to o/sold so we are close to heading higher imo. BTW been meaning to throw this bone your way for a while. HBAN,should keep an eye on it after the next pullback.It's had a good run and should keep going. All JMHO
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