Signals of the Day – 3.30.17

Afternoon folks! The U.S. market closed higher today, led by the financial sector rally after posting a positive economic growth data. The Nasdaq also returned to form and finished at new highs. The Dow wrapped up with a .33% gain, the S&P closed with a .29% gain and the Nasdaq rounded us out with a .28% gain.

On to the signals!

CPRM6 is looking for XOM to pull off a big, bullish reversal.

CPS5 Trendline Break Strategy – CPRM6 Plug-In

Exxon had a solid day, finishing up 2.05% on the day. Along with its technical factors, its push higher was aided by the news that the firm discovered new drillings spots off of the coast of Guyana in South America. Technically speaking, XOM is coming out of a rounded bottom pattern and is continuing its triple bottom reversal that it began last week. On top of that, it cruised through the 50 SMA and resistance at $83. Volume is also skyrocketing, which tells us that a new buying frenzy is underway.

This signal was fired by our CPS5 Trendline Break Strategy which is part of our Chart Pattern Recognition Module 6 (CPRM6). CPRM 6 is designed to automatically finds stocks with the strongest patterns in the market. CPRM6 also confirms those patterns by analyzing multiple timeframes. CPRM 6’s ability to use multiple timeframe confirmation (MTC) allows it find the strongest possible patterns and in XOM’s case, a trend breakout. The trend that the strategy is looking at in this case is the bearish trend that dates back to January and it is rated as a 5 on our strength meter, which is the highest rank. Higher the rank, the more accurate the pattern. Also, the more touches a trend line has, the more valid it tends to be.  In this case, we have three touches, which is fairly good. If this trend break continues, we could see XOM make a run at its next major resistance level at $86. For more info on CPRM, check out its PDF.

On to a reversal on Biogen.

Advanced Cycle Trader has identified a new reversal opportunity on BIIB.

ACT EOD Strategy – Advanced Cycle Trader 2 Plug-In

BIIB is at a major crossroad as it tests support at $269. If it can hang on and push higher, it has set itself up nicely for a large snapback reversal. As we can see, this level has been used as support three times in the recent past, and each time it was tested, large, bullish reversal moves followed. It is oversold on both the Bollinger and RSI indicators, putting BIIB in prime reversal entry territory.

The strategy responsible for this signal comes to us via our ACT2 plug-in. ACT-2 is all about identifying new market cycles and market modes. Once a new cycle is identified in a stock, a signal is fired. The ACT does this by using a technology called Digital Signal Processing, or DSP. Many traders have used DPS to analyze the markets for years. We took the process and beefed it up by adding several systems and indicators that are really too boring to mention here. Bottom line is, it is a reliable strategy and has been pretty spot on in terms of calling new market modes. If you are curious on ACT2 and all of its inner-workings, check this out.

If this move continues, we could see BIIB’s new cycle kick it on up into the $280 zone, where it will run smack dab into the 50 SMA.

We wrap up the day with AIG.

AIG is poised to make a run at its 50 SMA up at $64.

Guppy CBL Classic Strategy – GMMA 2.0 Plug-In

AIG is ripping up off of a double bottom reversal and after pivoting off of the 200 SMA back near $61. It is on the 30 reading on the RSI and at the mid-point on the Bollinger Bands, showing it evenly balanced with more room to go before becoming overbought. Momentum is moving higher and the MACD indicator bullish crossover has also occurred.

This signal is brought to you by the Guppy CBL Classic Strategy found in the GMMA 2.0 plug-in. This strategy relies on the Count Back Line System (hence the acronym CBL) and uses it to offer a precise entry. The CBL works by “counting back” from an established low or pivot point to establish entry levels. After the entry has been identified, the CBL counts back three highs for buy signals and three lows for sell signals. It does this to confirm the entry level. An entry signal is fired when the stock’s price closes above or below the CBL. If Guppy gets this one right, we could see AIG make its way into the $63-$64 zone over the coming sessions. But, keep on your toes if you’re watching this one, seeing as it has used large bullish moves as lower highs.

That does it for us for this evening. Have a wonderful night and check back in with us tomorrow to wrap up the trading week.

“Money won’t create success, the freedom to make it will.” – Nelson Mandela

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