|
Each morning before the market opens we send out our
daily newsletter by email. We will have up to 5 to 7
stocks that we feel will move the most during the trading session, based
on technical chart patterns, news, gaps or breakout chart patterns. The
newsletter may reference comments on the stocks and will have long and
short entries for the trading day. Using your charting software you can
set alerts based on our newsletter. The information is for education
purposes to help you improve your trading.
|
Stock |
R3Breakout Long Above |
ResistanceR4 Long Above |
R5Potential High of Day |
S3 Breakdown Short Below |
Support S4 Short Below |
S5 Potential Low of Day |
|
AMZN |
188.85 |
189.39 |
191.04 |
186.88 |
186.06 |
184.39 |
|
HRBN |
14.15 |
14.96 |
16.57 |
12.54 |
11.73 |
10.12 |
|
SNDK |
42.12 |
42.45 |
43.10 |
41.46 |
41.13 |
40.48 |
|
MET |
40.49 |
40.62 |
40.87 |
40.24 |
40.11 |
39.86 |
|
RIMM |
26.28 |
26.67 |
27.43 |
25.50 |
25.12 |
24.35 |
|
|
|
|
|
|
|
|
|
|
Newsletter |
6/21/2011 |
|
|
|
|
Resistance & Support Levels:
The levels
above are support and resistance levels for the stocks in the
newsletter. Picture them as floors, as stock moves up breakout
levels our, R3, to R4, to R5. If stock is trending down, support
levels are S3, this is the area to short below, then stock can
breakdown to S4 and extreme sell off S5. These levels in the
newsletter remain in effect for entire day. If volume is strong on
the day if stock breaks to R4 level, over 80% chance that it will
trend up to R5 level later in day if volume strong.
S5 Level is the Potential Low of the day. R5 Level is Potential
High of the Day.
Trade Setups:
The
alerts are setup for the stocks to breakout above
the R3 Level we like to call it. Its a resistance levels, which means
the stock more than likely has either broken out above yesterdays
afternoon high, and or the previous days highs.
The
breakouts are good for the entire day. As often a stock will get to the
breakout level in am session and then pull back. So the stock may not
breakout until the afternoon like the recent setup above on SPWR. Were
it broke out the last 2 hrs and went right to the R5 level high of the
day. Once a stock breaks out first target of profit area is the R4
level, which is the first level of resistance.
On the
shorts the S3 area is support area to enter the short on a stock.
Usually this level the stock may be making a new 2 day low, or lost all
support from the previous day. Support on way down is S4 first area to
lock in some gains, and then final target S5. As the stocks
reverse of the lows you may see them bounce of the S3 to S5 Levels and
move back up, after sell off the levels now become support and often
stocks reverse from there.
You will
notice on stocks prices over $60 a share the breakout levels
increase as the stock price increases. Like AMZN breakout from R3 to
R5 may only have the potential of moving +.60 to +1.50 move. Now
stocks over $100 a share like AMZN and IBM the potential increases
to +2.00 to +4.00 a move. No need to trade all the newsletter
alerts just focus on the stocks you are familiar with, or the setup
that plays to your trading style. So if you don't trade AMZN no need
to watch it, if you only trade RIMM and SNDK focus on those.
|
