Just as a refresher, we don't try to predict where the market is going, only to be prepared for any and all scenarios.
Anyway, the reason why the potential for a consistent directional move(finally?) is so important should be obvious..
We have a slew full of candidates just waiting for buyers to have the confidence to return to the markets..
Below we've highlighted to of our most recent holdings, CNDO & ELY.
The first chart below, CNDO, is in what we refer to as a Wedge pattern(on 30min chart) of which a close over the neckline($2.50) would indicate the next leg of the move higher.
We are watching this closely as if we get another signal, we might very well add to our existing position as it's right around the original level($2.45)
The next chart, ELY, is already a nice winner for us having bought in around the $8.14 area. As you can see from the Weekly chart, it looks to be gearing up for a move higher to test the $10.40 area..which would be fine with us.
I also wanted to point out that this Weekly ELY pattern, particularly the last 3 bars, are what breakouts look like..
4 weeks of trying to get above $8.15 zone, a power up candle, a Doji(Red indecision candle) and then last week what appears to be a return to powering higher...We'll see.
Hope you're all having a great weekend and I'll see you in the markets next week.