Wednesday, February 13, 2008

5 Bullish Chart Setups

I rarely trade 100 percent long or short, even if trading within the confines of a wildly bullish or bearish market. While my market bias is bearish, there are still some bullish stocks to trade. Here are a few nice looking setups, though few are perfect.

The stock broke out in December and has traded in a consolidation range ever since. It looks a bit extended here. I'd like to buy on a pullback to the 50 day moving average.

Price action has been good, but the volume pattern does concern me. The current price breakout has not moved on tremendous volume. Many independent oil and gas stocks are showing similar patterns.

Unlike KWK, MTL's volume pattern is confirming the price move. This one's at the top of my watchlist.

I am not as bullish on the ag stocks as some. CF has one of the best charts among the grouping, but still has some concerns. Namely (surprise, surprise), the volume pattern is not confirming the up move. I'd like to see CF break out to new highs on very strong volume before entering.

Fantastic chart. Price breakout confirmed by accumulation pattern in volume. The stock is extended. I'd like to buy on pullback to support.

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