As we come towards the end of another trading year I thought it would be a good idea to catch up on some of the more recent stocks I have analyzed and in no particular order, these are as follows. Alaska Air (ALK), Devon Energy (DVN), Alliant Energy ALN, and finally Bristol Myers Squibb (BMY).
If we start with Alaska Air, this was analyzed on 25th October as a potential short position having breached a key level at $56 per share. At the time it was trading at $53.88 and as we can see bringing this up to date as of last Friday, the price did indeed continue its downward trajectory touching a low of $46.26 on the 1st of December, before finding some support and recovering to close at $51.67 per share. The price continues to look weak, particularly with the candles and associated volume of both the 6th of December and the 8th of December with deep wicks to the upper bodies.
The next stock is Devon Energy which was reviewed on the 2nd of November and trading at $41.99 at the time of writing. This stock was seen as one with bullish potential following a move away from congestion. The stock closed on Friday at $43.42, but as we can see from the daily chart, we are in an extended phase of congestion building around the VPOC denoted with the yellow dashed line and as before, this is one where patience is now required with the high of the 8th December at $45.55 defining the upper level of resistance now building for this stock.
The third stock is Alliant Energy which I considered back on the 23rd of November and like Devon Energy was another that was breaking out from a congestion phase with the potential to develop a trend higher. At the time of my analysis the stock had closed at $57.83 and with a low volume node ahead on the daily chart looked a promising candidate and whilst it did continue with further congestion, since then it has climbed away from the VPOC, closing on Friday at $58.89 per share, and as before, with a low volume region on the VPOC now ahead, this should help the stock continue higher and touch the $60 per share price before the end of the year. Note the volatility candle of the 30th November on extreme volume which triggered the current rally on a strong reversal
Finally to Bristol Myers Squibb which was considered purely as a solid example of stopping volume on the daily chart. However, I did remark in the analysis that even if the bullish sentiment did continue, this stock was unlikely to deliver a longer-term trend given the potential for congestion ahead at the volume point of control (VPOC) which has indeed been the case, so as expected the price is now moving sideways and likely to do so for some time.
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading
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