My pick for the week is long CEDC which has been picked several times during the past weeks.

Weekly impulse is blue.

On the daily chart CEDC has tried to push through the 50dema 4 times and has consolidated just below it. It looks like it wants to jump through it very soon.

I am looking for an entry around 12.07 area or in case of breakout I’ll try to make on entry on the fist intraday pullback.

13.20 -13.70 area might act as a resistance. However, I am looking for a vigorous short squeeze above the 50dema that might slingshot the stock well above the upper channel line.

SLV diverging from SIL.

Raising more questions than offering answers.

Be careful out there because the earnings season might do the trick and slam the bulls straight to the face. Nothing is sure here and expect volatility. When the charts tell us that the bull market is over, then it is over. So far we still are in the bull market and we have to respect that and trade accordingly.

Sunshine,

Matias

The overall market makes me feel very confused. Feels like it might as well make a leg lower or blast up after little bit of resting. Last Friday we saw some selling coming in. It might very well be just reluctance to carry positions over the weekend and nothing more. However, we have not seen any big time willingness to sell lately and that makes me wonder that the money is waiting on the sidelines to see if the market can break up and have another leg higher.  However, the move lower is totally possible and thus I have made plans for both possible scenarios. Still, my main focus has been on finding good set ups on the long side.

My pick for the week is HGG. It has been sold from $31 to under $14 during the last 12 months. The weekly chart rests around the 61.8 percent retracement level and under the lower auto envelope channel. Weekly impulse is blue.

On the daily chart HGG ran above the 20dema with great volume last Thursday and pulled back to the 20dema with light volume on Friday. I am looking for a continuation of momentum and test of 50dema at 15.20 area.  My planned entry is at 14.31 and stop at 13.71.

What concerns me a bit is that HGG tested 61.8 percent retracement level from below and sold off and the levels happened to be the same as 1 ATR level. Thus I choose to enter the trade only if I see further momentum to upside.

MENT Long trade from a pullback to the value zone or a breakout play above the 9.75 level. I prefer the pullback.

June 22 @ 10:48 Entry @ 9.41 STOP @ 8.88

FXE chart shows a breakout above 22dEMA on daily chart indicating possible continuation of the bounce.

EUR is very oversold on the weekly chart and we would not be surprised to see bounce up to the weekly value zone.

FXE daily chart showing us a rally attempt. Rally stalled at the 22dEMA. We need to see Euro to strengthen in order to get healthy upside bounce on S&P 500. FXE is the name of the GAME right now.