September 1st, 2016 Watch-list
Evening traders! Another red day for the market as the DJIA came down 53.42 points. We saw it dip down near that 50sma for a portion of the day before rallying higher to close out. That 50sma is going to be a key area of support to watch at this point. If we break below it, I expect the DJIA to trend down towards the 18247 level. Chart below with key levels of support and resistance labeled for review.
Current Gold Plays on Watch:
GDX/EGO/RIC: We saw our potential Gold plays take a small step back again today. Because of this, another chart adjustment has been made to EGO with a new buy range and profit target. As we discussed yesterday, Gold has become much more risky following the words from the Fed last week regarding a rate hike. If rates increase, it generally harms Gold. Friday will be key. If the jobs numbers are strong, it will give even more reason for the Fed to raises rates in the coming months, which will most likely harm these plays. If the numbers are weak, it will do damage to the narrative that a hike will happen and Gold should rally as a result. Because of this increased risk, let's look to not only get the daily buy, but 15 minute buy as well. Not only that, but look to enter no more than 1 of the 3 potential trades. Charts below for review!
Current Below $20 Plays On Watch:
TRQ: We're seeing TRQ struggle to break and close above that descending 20sma. Today we were able to break above it briefly, but failed to close above it. If this continues, and with the 20sma descending, this may cause the price to get pushed down below $3. Have stops set at $2.98. Hopefully we can see it break topside and close above that 20sma in the next day or so. Chart below for review.
Current Above $20 Plays On Watch:
DWTI: We finally saw USO fall below not only the 50sma and 200sma, but the 20sma as well. As a result, DWTI rallied very strongly and broke right through our second target of $85. For those who locked in profit, great job! For those still in, look to kick in a protective trailing stop at this point of 3%-5%. Great overall trade!
FLEX: Potential breakout play here. Chart below with my thoughts for you to consider. Good breakdown to the individual who sent this in! Keep it up!