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Tug O' War: BK Long, MCP Short

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June 29, 2011 – Comments (0) | RELATED TICKERS: BK , SPY , MCP

 

Despite the last two easy win for the bulls, market is still within a trading range that it has been bouncing around for the last 3 weeks. This market is still uncertain of which direction it will take therefore, cash still feels good at the moment, after all missed profits are always better losses.

Look at the range on SPX 30min chart:

 

Here's the S&P Chart Analysis

 

For aggressive traders, it doesn't mean game over, we can still always taking small bites out of this choppy moves by trading momentum and heavy tops & bottoms. Here's one long and one short for this week's watch: 

 

Long - BK (The Bank of New York Mellon) This stock has been a down trend for months now and recently sold off on heavy volume into a major support indicating a bottom is near or a good bounce in place real soon. Wait for a candlestick pattern signal on this stock and hop on as it turns over, the first target is to test $26.

 

Here's the BK Chart Analysis

 

 

Short: MCP - Molycorp is trading in a broadening downtrend channel, it is pulling up against the upper trend line and likely bounce off. Consider a short position on the bounce in the next couple of sessions with target of $49 and 2nd target on the bottom trend line.

 

Here's the MCP Chart Analysis

 

 

 

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