As part of the MarketWatchers LIVE show (airs M-F, 12p-1:30p - You'll find today's recording under the "Webinars" tab), Tom Bowley and I come up with set-ups on Monday. We call the segment "Monday Set-Ups". This segment has an eye toward very short-term investments as Tom and I compete to see who had the best returns on the following Monday. I use my PMO Scan exclusively to come up with my Monday Set-Ups (you'll find the article with the scan language here). I thought today's set up was very promising for the short term, but also in the intermediate term, so I thought I would share this "angel" that hopefully won't turn into a "devil".
The gap back in September ended right on what had been previous resistance. It stalled out a bit after that, trading mostly sideways. However, just playing bottom of the channel to top of the channel trades would've been nice. Now we see another big breakout on volume last week. price pulled back to what I suspect will be support within a new trading channel. The PMO is nearing a BUY signal. The SCTR shows that among its peers, HALO is in SCTR 'heaven' -- staying in the hot zone since the gap up.
I think the weekly picture is even stronger right now. This area of overhead resistance being broken has long-term implications as it matches up with the 2014 high. The PMO is rising and we've seen HALO reach 'heavenward' before closing near $25.
Conclusion: HALO appears angelic right now. It has some great potential in the short and longer terms, but let's face it, we've seen some heavenly set-ups turn devilish. I'd want a stop around $17.50 - $17.75, below current support.
Helpful DecisionPoint Links:
DecisionPoint Shared ChartList and DecisionPoint Chart Gallery
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
Technical Analysis is a windsock, not a crystal ball.
Happy Charting!
- Erin
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