Watchlist For 28 December 2016: CMCM, DECK, HIMX, MMYT, NUAN, NUS, PII

My picks for 28 December include some stocks that are moving in channels, as well as a couple/few potentially riskier bottom fishing expeditions. Let’s take a look:

DECK just made a nice bounce from the lower boundary of its upward channel and looks ripe for an upward move. Entry = 55.01, protective stop at 52.46.

In similar fashion, PII made a more conservative bounce from the lower boundary of its channel, which is good because that reduces the distance between the entry and the stop, thereby lowering your potential risk. Entry = 80.56, protective stop at 79.27.

NUS is making a second recent tag of the lower boundary of its long term channel. Entry = 49.30, protective stop = 46.35.

CMCM is moving in a nearly horizontal channel and just made a good bounce. Keep in mind that if you want to enter a stock like this, where a larger span has opened between the potential entry price and the protective stop, the price could retrace a bit before it takes off again, or even make a double bottom. So be mentally prepared for a pullback and don’t panic: let the stops do their part of risk management. Entry = 9.57, protective stop = 8.91.

MMYT looks like it’s ready to make a bounce here. Entry = 23.91, protective stop = 23.35.

HIMX is a pure bottom fishing expedition at this level, but as you can see from the chart there’s been very strong support in this zone. Entry = 6.23, protective stop = 5.85.

As you may recall, NUAN was on my pick list for the 21st, and I was stopped out on the next day. I confess to being a little aggressive in my entries, especially when I see chart patterns I like but that haven’t fully established a channel. On the one hand, I suffer a penalty for that (being stopped out), but on the other hand, when it works, it can have a dramatic effect on the overall payoff for a trade. In the case of NUAN, the CCI20 again turned up from oversold as a result of the nice green candle on the 27th that coincides with a tag of the Ichimoku cloud, so if NUAN’s price breaks yesterday’s close of 15.17, I’ll go for another entry with a stop at 14.76.

Leave a Reply

Your email address will not be published. Required fields are marked *