The Student Loan Ranger

Aggreko (AGK)
Textbook patterns and outcomes on AGK. This broke out strong resistance a few weeks ago, after forming a double bottom, it immediately formed an ascending wedge, which gave a price target of 730 once formed. It broke out and hit 740, and now I expect this to retrace to about 660 - the previous resistance line. Price target initially at 740 - and I expect this to be breached, but it is safe to keep a tight trailing stop, maybe about 20p in the lead up, just in case.

The stochastics and MACD look bearish, and this is a kind of confirmation of the upcoming drop. Entry long is a bounce off 650-670 - with a strong intra-day signal like a double bottom. While I don't expect a breakdown on AGK, I would short at a breakdown of 640 - but I'd be wary of that being a spike down before a surge northwards.

Watch for buying volume in the lead up to the intra-day entry signal.

GlaxoSmithKline (GSK)
With the financials, housebuilders, consumer goods, industrials and more or less every sector being hammered at the moment, GSK is looking pretty good. Everybody gets sick if they have money or not, and everybody needs to keep clean to stop from getting sick. This kind of stock seems to hold up OK when the rest of the market sinks. As the majority of stocks on the LSE are in absolute meltdown, GSK has broken out on the positive side and is looking for continued growth.

I posted this on Thursday night, with intent to trade on Friday. It had a down day, but still closed above this new support line following the breakout. This 180 day was welcome, as GSK had surged lately.

I'm looking for an intra-day signal, something clean cut and a solid foundation at around 1165 for entry long, and ideally I would wait at 1191 before opening up. In terms of targets, I would trail a tight stop and see how it fares at 1250. GSK looks good, but I would short if this new support is broken around 1140, trailing stops to about 1070.


ALERT SECTION


I don't want to post chart after chart of descending wedges and double/triple bottoms, and I think most if not all of the following fall into this category.

• ADM has hit the current price 4 times in the past year and held well. Bad stochastics and ADX however. Short sub 720, go long on buying pressure above 775.

• AMEC has retraced to old resistance and looks to move to new highs. Enter long on breaks of 900, short sub 845.

• BAY struggling with continued highs on oil. Watch the crude prices for drops on BAY as it triple bottoms at 197. Short sub 195 for new lows 100MA and 20MA quite significant too. 197-250 is a strong trading range at the moment if it bounces nicely.

• EXPN in a descending wedge, 340 the key price for going short. Longs at 380+ if they come, but I don't expect a bull rally for a while.

• FGP is really struggling to hold 500 at the moment. I'd look to short at 495 but be wary of wicks. A potential meltdown in progress here.

• IEC looking to become a horror show as it closes the week on lows and down 16%. Simple downward momentum play sub 769. Watch out for a 180 day followed by new lows too.

• MPI at a double bottom. Does not like 10MA at the moment, and looks a tricky one. Long over 240, short under 210.

• It's the same story for SDR which closed the week on lows. I'm a slight more bearish in here, very bad indicators. 815 the price to open a short.

• Short IMI on continued selling pressure under 380.

As for the stocks that maintain their place in the watchlist, check their original CB entry or any of the recent roundups. CBG, TLPR and INCH look the most likely to trade this week.

Should be another decent week for trading. We have a lot of stocks to watch this week, but I'm probably going to set up some limit orders and alerts on my platform so I can trade a bit more mechanically this week.