2 Stocks to Watch
November 11, 2010 in Analysis
The PEMA Method has been offering amazing setups and entries in the current market environment. I’ve got two stocks that you’ll want to keep an eye on using this amazing suite of entry triggers. Check ‘em out!
PEMA Breakout Opportunity
The daily chart of Lowe’s Companies, Inc. ($LOW) has been coiling within the boundaries of a developing triangle pattern over the last two months. Obviously, price is gearing up for the next big breakout move.
What makes this setup particularly interesting is the fact that all three pivot-based EMA’s are virtually flat, or neutral. This development is a setup that I call the PEMA Breakout, which occurs just before a major breakout and can lead to serious price movement.
A breakout in either direction from the triangle should spark the next two-point move in this stock, but an upside break appears to be the most likely scenario.
Watch $22.50 up, and $21.50 down for signs of directional conviction in the days ahead.
PEMA Pull-Back Opportunity
A new Long signal has fired in the daily chart of Tibco Software ($TIBX) using the PEMA Pull-Back system. This system fires signals during the pull-back phase of trending markets, offering great trade location during well-behaved trends.
Essentially, this method is used to find highly profitable “buy the dip” opportunities.
Coincidentally (or not), price is also beginning to show signs of strength off the monthly pivot range, which has formed a two-month Higher Value relationship. When this occurs, any pull-back to the pivot range is usually seen as a buying opportunity during bullish trending markets.
Actually, this setup is very similar to the one I wrote about a few days ago ($BIIB is a Buy), which has turned out very nicely so far.
If price closes above $19.50, we could see a push to new highs toward $21.
Let’s see how these play out!
You can learn more about these great setups – AND MORE! – in my FREE 50-page eBook Profiting with Pivot-Based Moving Averages. You’ll learn more about these fabulous setups and will also learn about the amazing Modified PEMA Crossover system – simply put, it’s worth its weight in gold!
Also, be sure to check out my book Secrets of a Pivot Boss – the most comprehensive book on pivot-based trading and analysis on the market!
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