Looking back at the last 4 weeks of price action on the stocks we were watching to see how well we were able to interpret the charts. On the episode released on 10/09, we talked about FB, CCXI, UNP, GE and K. Let’s see how we did.
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Dan was and has been a vocal proponent of the Facebook bear case, and was watching the $325 area to fail as support. Looking back at the last 4 weeks of price action, it took a couple tries but the stock was able to tag the $308 level before bouncing back and settling in right around the same area. The stock was able to put in a higher high though, breaking the recent bearish trend
Chemocentryx
Kyle was looking at this stock for a potential short play, noting the massive amount of volume on that gap up. He did say that he didn’t want to see a new high, which happened the next day. Still, there was a good opportunity here for someone able to stomach some bigger swings as the stock found bottom under $32
Union Pacific
The star pick of that week was Union Pacific. Kyle was watching for a break of $217 for a push to new all time highs, and that’s exactly what happened. UNP is currently consolidating around the $240 area
General Electric
General Electric was another winning idea, but it took a while to play out, with one false breakout tossed in for good measure. Kyle was watching for $107 to break after the stock had been testing that level multiple times. Our take profit point at $115 was spot on as well. The price tagged $116 before falling back to earth.
Kellog Company
The last stock we discussed was Kellogg’s, as Dan was looking for a failure of the $61.75 support. That area did end up breaking down, but the stock was able to hold $61 before reversing to a lower high above $64. The bear trend is still intact though, and it’s worth watching $61 the next time it gets tested… If that fails, $59 looks like a good target based on the volume profile.