August 31st, 2016 Watch-list
Evening traders! The last 3 days we've seen the market swing back and forth and still hold below that 20sma. As we've discussed multiple times, the daily chart has moved more off the bearish side, but the weekly chart is still strongly bearish in my opinion. Key things to watch are 1) if we break and close above the 20sma, or 2) go down and test the 50sma. A solid break and close above the 20sma could mean we're positioning to make a move towards the 18668 high. A hold below the 20sma and a move towards the 50sma could mean a breakdown towards the 18,000 level. Daily chart below with key support and resistance labeled!
Current Gold Plays On Watch:
GDX/EGO/RIC: It appeared as if Gold was ready to finally settle, but after today's action it looks like it may trend lower. As a result, adjustments in profit target/buy ranges have been made to GDX and EGO. This is why it is so important to make sure, before we enter, we receive a daily buy and a 15 minute buy as that higher low forms. Be extra picky here, and look to enter only 1 of the 3! With the news that rates could be going up later this year, that won't be good for Gold. If Fridays jobs numbers come out strong, that may give the Fed even more reason to pursue a late year hike and as a result, Gold may end up falling further. If the jobs numbers are weak, may give the Fed more reason to delay a rate hike which should be good for Gold. The risk in these plays has gone up due to recent talk from the Fed on rate hikes. All 3 charts are below for review.
Below $20 Plays on Watch:
TRQ: As we discussed yesterday in the video watch-list, today and tomorrow are going to be key for this chart. We've struggled to break above that 20sma, and with the 20sma descending against the price, it is somewhat of a make or break point where it may end up pushing us down, or hopefully we break above it topside. Chart below for review.
Current Above $20 Plays on Watch:
DWTI: Nice 3.33% gain today for DWTI. Has broken back above our initial target of $79 and is better positioned at this point to make a move into the $80 level. Daily indicators are starting to curve topside again and USO closed right at that 50sma. Again, the key is for USO to break below the 50sma and 200sma and them not act as solid support levels. If that happens, DWTI will run topside. DWTI chart below for review!
Student Request Review:
DGAZ: We added this one yesterday as a student request, and it performed well today. For those who entered, $6.90 is a good initial target in my opinion. Chart breakdown below. Not bad so far, but remember, this one can turn quickly. Have your stops set!
LLNW: We actually reviewed this one a few days back as a student request and identified it as a potential breakout play above $2.04, however others have sent it in wondering if there is some potential as a reversal play off the current level up towards $2. Chart below with some detailed notes for your review!