Stock Chart Analysis WNR
Western Refining, Inc.(Public, NYSE:WNR)
I was alerted to WNR today on my "Stocks with Mojo" scan from Trade-Ideas. While I typically use these alerts for day-trades, I've found great swing trade candidates from this filter. I really like the price action in this chart, although there are a few divergences on it. Overall, WNR looks like it is clearing a Cup and Handle base on strong volume. The "handle" took on the form of a triangle with the bottom of the pattern roughly following the 50-day moving average. WNR gapped above the base today and the volume accompanying the breakout is very strong. While the price pattern looks pretty good, there are some divergences in RSI and MACD. Both have failed to hit new highs with price, but these divergences sometimes clear themselves up as price follows through. If WNR makes a decent run here, I presume RSI and MACD will be pulled to new highs. For now the breakout looks valid and the question is will WNR provide a decent entry?
Good Trading,
Joey
Stock Chart Analysis CFL
Brink's Home Security Holdings, Inc(Public, NYSE:CFL)
Somehow Brink's Home Security, Inc. (NYSE:CFL) has been flying under my radar despite a pretty good looking chart. Maybe it's because it is a recent IPO or cause the ticker has nothing to do with the name of the company. The IPO market actually has gotten a shot in the arm lately with a couple of other stocks performing well in CYOU and RST.
In looking at CFL, it's a pretty simple setup. CFL settled into a 4 or 5 month consolidation after a volatile first month. Most of the consolidation occured above the closing IPO price, and this level has held as support on the following pullbacks to that price (near $20). After a tight consolidation towards the upper end of the established channel, CFL was able to breakout on nice volume. Traders have shown a hesitancy to support the higher prices as witnesses by the long upper wicks or shadows on the post breakout candles, but CFL has also given up little ground. This is a classic pullback to support trading candidate and it should find support on a pullback to its rising 20-day moving average and breakout area. Of course it may not get there, so any strength should be respected, as this issue obviously has no resistance above $29. This one will be on my watchlist for the coming week, and I will post an entry on twitter if I take it.
Good Trading,
Joey
