Friday, July 22, 2011

DIS, CGNX, XLU - 3 Potential Tradable Patterns Developing

DIS - Cup and handle developing. Fundamentally not much to boost this stock and there is a lot of overhead resistance. I see a price target in the $42 range. Might be a good short term trade. Ultimately its going to take much better quarterly earnings to churn through and get back on top.

CGNX - This is an ugly inverse head and shoulders pattern developing. The stock is bounce off the 50ma with regularity. I'm not extremely hopeful for a powerful breakout based on its decreasing volume but the the lack of overhead resistance might make a breakout possible if the market is strong.

XLU - This ETF trades off the utility sector. Today's action bounced off resistance. Looking for a breakout. I've included the sector's index which this ETF trades from.

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