Monday, September 15, 2014

I'm looking for stocks to trade this week

So this week I'm looking for US equity stocks to trade since I noticed the awesome run up in the US dollar last week. Just randomly I chose AMAG, a pharmaceutical company and C (citigrp). The Citi chart tells me there's a range and that the price wants to stay within it at least for the near term. Below is a 60min chart which shows a double top and mid-range support being approached. At around 51.91/90 if we don't see any support we can move in for a breakdown towards range low of 51.10 and if that is broken we have open season for picking the next support
My order is to sell short at 51.90 and let it decide if the range will hold or not. 

Moving on, AMAG looks like it could be ready for the long drop. In a 60 min chart we see a beautiful shooting start formed at the top of its uptrend followed be consecutive lower lows and lower highs. We have now reached critical levels. Below is a the chart aforementioned which clearly shows us we've reached a critical support level. Where it acted as resistance in the past the price has now moved back down to fill the gap which was created in early September or will this level hold and send the price higher to test the last recent high. From $22.79 if there are no buyers or orders to support we should see a good breakdown from this level

My idea is to look for a sell around the 22.99 and 23.27 resistance levels with 23.80 being my STOP-LOSS and $21.50 as my first target. The figure below is a 15min chart of AMAG which shows a description of what I intend to accomplish in this trade.

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