Stock Chart Analysis OII

Oceaneering International (Public, NYSE:OII)

OII recently broke down from an established trading range and has since been in a struggle to get back over the 200 day sma. While the volume hasn't been high, the breakdown looks pretty solid. It looks like a clear double top or descending triangle breakdown which has a good success rate. I also like that there is a clear stop loss area for my trading style just over the 200 day sma and the recent trading range. If the markets are going to head lower for a retest of the recent lows, then I think OII will go down with it.



Good Trading,


Joey

for more analysis, check out downtowntrader.com

No charts tonight as I prefer to wait until the Fed move announcement is digested tomorrow. There is a better then even chance we may not even know the next move until a few days pass either. I have a few plays in mind depending on the reaction such as OMCL, ZOLL, and CCC if the move is positive, or going the inverse ETF route if things break down.

Good Trading,

Joey

Stock Chart Analysis GYMB

The Gymboree Corporation (Public, NASDAQ:GYMB)

Retailers had a nice bounce the past few sessions as lower rates and extra money courtesy of a stimulus plan are giving hope to many that a recession can be avoided. However, the threat of a recession is very real, and most retailers will suffer if consumers are tapped out. While there is still a chance of further rallying from retailers due to coming news related to a stimulus package, some are starting to look like they are ready to pullback again.

GYMB has had a sharp move off it's lows recently and is actually up nicely for the year, which is shocking considering how poorly the markets have fared. While I would typically avoid shorting a stock showing such strong relative strength, GYMB is still technically in a down trend and is up against stiff resistance. It's also had enough of a rally to work off any oversold readings it had. The chart below is showing a candle pattern named an evening star reversal pattern which often kicks off a reversal. The fact that it occurred just below the 200 day sma and horizontal resistance validates the signal further in my opinion. I would think $37 will remain as resistance but the nice thing about trading a pattern like this is the clear signal to cover the short if it doesn't work out.


Good Trading,


Joey

for more analysis, check out downtowntrader.com