To highlight a high probability setup I'll use today's example of PAY.
PAY based around $14.50 (nice round number) between yesterday and most of the day today. A breakout occurred on large volume only to come right back down to where it started. My first reaction is "uh-oh, fake-out!" However, price didn't fail, rather it found support only to continue higher.With this in mind, consider potential in AMCC for tomorrow's session. On the Daily chart the issue broke-out while today's session landed it right where it started from. That's not to say it WILL go up tomorrow, but you'll know right away whether it has support at that previous resistance level.
Other setups for tomorrow include;
EXH; it's a bit stretched out, but that's what ends up squeezing shorts.AMKR; basing at $7.50. Today's session was an nr7 (purple candle) closing at the highs of the year.GD; similar story as the one above. Basing under $64 with ever tighter range contraction. Also, the H&S stands out strongly.
INFA; bull flag at highs not seen since 2001.PCS and LEAP stand out at me as possible short-covering plays. LEAP may see $25?
and PCS to $12?
FACT; high tight flag
ditto FLIRdon't count out ENER yet
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.