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- SignalWatch – 5.15.17
SignalWatch – 5.15.17
May 15th
Good evening to all! Let me start off by saying thank you to every one of you for your patience over the past few days. When it rains it seems to pour and things got a bit hectic on this end of the keyboard and I had to step away for a few days. But, we are back in action so let’s get down to business and tonight’s signals.
WaveTrader is looking for a new higher low pivot.
Monsanto has been moving higher for months now and has established a fantastic, steady uptrend. It has produced profitable setups on every single pullback and has set new highs often. This chart really is close to a trend trader’s ideal chart. Volume is also starting to increase, which is a signal that the next wave of buying is starting to roll in. It is on the midpoint on both the RSI and Bollinger Band indicators which tells us that MON has more room to go before it becomes overbought.
The strategy that fired this signal is the WT3 Short Term strategy and it is a part of out WaveTrader plug-in. WaveTrader uses advanced algorithms to find stocks that are outperforming the market, experiencing pullbacks and seeing an increase in volume all at the same time. Once WaveTrader identifies a stock with all three of these parameters, it fires a new signal. Because MON is not far away from new highs and resistance, the short term strategy was fired. WaveTrader is looking for a short term pop into the $118-$120 zone before this signal terminates if all goes according to plan.
Next up, CAT.
GroupTrader is looking for a return to the mid $100’s on CAT.
Until late last month, CAT had been bouncing around inside of a trading range until busting through resistance at $99. After the resistance breakout, we saw a push into the $104 zone before beginning to pullback. After testing $99 once again, this time as support, CAT pivoted back to the upside and that is where we find it this evening. It scored a healthy 17% gain today and its indicators are pointing to continued bullishness. It is still below 50 on the RSI, it is a the midpoint on the BB, volume is increasing and it is trading well above its major moving averages.
The strategy that fires this signal was the GT Medium Term strategy which is part of the GroupTrader plug-in. GroupTrader looks for industry groups that are active in the current market and that have stocks that are highly correlated. It then finds the symbols inside the groups that have the most confirmation that are also highly correlated. The resulting signals are extremely accurate and you can also find multiple trades on multiple signals inside of the industry group.
In this particular case, the Construction group is tightly correlated and they are all poised to pop. If this move continues, check for CAT to maybe test the $105-$106 waters before hitting the breaks. If you’d like to know more about GroupTrader, check out its literature here!
For the last signal of the night, we have a reversal signal on Colgate-Palmolive.
GroupTrader is sniffing out a reversal move on CL.
CL has been wound up tight as of late, trading in a consolidation pattern after gapping down late last month. It did hold above support at $71 though, which also happened to be the 200 SMA. It is now just about in the middle of the 200 and 50 SMA’s, with the 50 now acting as resistance at $73.00. It is oversold on the RSI and close to oversold on the BB indicators. This puts CL in a prime technical, reversal setup. Volume is also on the rise which usually denotes the next wave of action is kicking off. If we do see this pop, we could see CL make a run back into the $73-$74 zone in the coming sessions.
Like our previous signal, this one on CL was fired off by GroupTrader 3. Once again, we have a stock in a highly correlated industry group that is outperforming as well as seeing a pullback, putting it in prime position for profitable, reversion moves. Keep an eye on this one and just in case you missed GP3’s lit earlier, here it is again.
Have a wonderful evening and we will see you back tomorrow.
The products and demonstrations listed on this website are not recommendations to buy or sell, but rather guidelines to interpreting their respective analysis methods. This information should only be used by investors who are aware of the risks inherent in trading. Nirvana Systems shall have no liability for any investment decisions based on the use of their software, any trading strategies or any information provided through other services such as seminars, webinars, or content included in the SignalWatch website.
About the Author Ryan Belknap
Ryan has been with Nirvana since 2012 and has been manning the trading desk since Day 1. He was one of the founding members of Nirvana's Trading Lab and also TraderSource.com along with Ryan Olson and Russell Casperson. Ryan logged more than 3,500 hours trading and educating live in the Lab. He is also the lead author of SignalWatch.com. Ryan is a seasoned educator and has conducted numerous educational webinars and is an OmniTrader University instructor. Ryan prefers swing trading and position trading. Outside of the market, Ryan has passions for the outdoors, baseball, exercise, coffee, pop-culture and spending time with his family.