Tag Archives: PEMA Breakout

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A NASDAQ 100 Breakout?

The E-Mini NASDAQ 100 has been coiling within a rather tight range over the last two months, which could pave the way to an impressive breakout soon. Here’s why…

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Spring-Loaded

The daily chart of the E-Mini NASDAQ 100 futures contract shows price has been coiling like a spring since late October, which means we could see a potential breakout opportunity soon. Any time price trades in this type range contraction phase, we usually see a phase of range expansion ahead.

As a matter of fact, the coiled price action actually resembles an ascending triangle with a clearly defined resistance level of 2,700, which has held firmly over the last two months. Traditionally speaking, ascending triangles tend to break to the upside, but a breakout in either direction can occur.

E-Mini NASDAQ 100

Also, the triangle pattern has a backend measurement of about 200 points, which means we could see a move of around 200 points once a breakout occurs.

PEMA Breakout Setup

FREE PivotBoss eBookThe daily chart also shows that a PEMA Breakout setup has developed, whereby the three pivot-based EMAs (13, 34, 55) flatten out right at the apex of the coiled pattern.

This setup lets you know that buyers and sellers are at an impasse, and to expect a resolution soon via a breakout.

You can learn more about this pattern, and others, in my free ebook HERE.

Levels to Watch

The overall long term trend direction is up and the triangle pattern has developed in an ascending manner, which both point to an upside break ahead.

Obviously, the NQ will need to see a breakout through 2,700 if further strength is to be seen. If a breakout does indeed occur, we could see a slow and steady rally into the close of the year.

However, a breakout in either direction can occur, and both can be traded just the same. Keep an eye on 2,620 for a potential downside break. Such a break could spark a retest of prior lows at around the 2,500 level ahead.

Look for price to continue to develop within the triangle until a clear and decisive breakout occurs.

Let’s see how this one plays out!

Happy Holidays (and Savings)!

PivotBossWe at PivotBoss have had an amazing year, and we want to send a giant “Thank You!” to all of our fans that have helped to make 2012 a success. Let’s make 2013 even better!

In keeping with the holiday spirit, we’ve slashed prices on ALL OF OUR PRODUCTS for our biggest sale ever!

Also, if you buy in December, you’ll be invited to The PivotBoss 2013 Market Outlook webinar in January!

CLICK HERE to view our Holiday Brochure!

 

Cheers!

Frank Ochoa
PivotBoss | Own the Market

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2 Stocks to Watch

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.

Lowe's Co ($LOW)

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.

Tibco Software ($TIBX)

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!

FREE eBook!

Profiting with Pivot-Based Moving Averages eBookYou 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!

Cheers!

Frank Ochoa
PivotBoss.com

Follow Frank on Twitter: http://twitter.com/PivotBoss

Is Crude Oil Due for a Breakout?

Crude Oil (CL) has had decent price swings over the last few months, but September has been fairly dry, thus far. However, Crude could be on the verge of a major breakout opportunity – one that could push price 12 points in the direction of the breakout!

Triangle

The daily chart shows Crude Oil has been coiling within the boundaries of a developing triangle pattern, which has formed since August. Since the backend of the pattern spans 12 points, a breakout from this pattern should spark a 12 point move – which is a big for this commodity.

Also, you’ll notice that all three of the pivot-based moving averages are basically flat, or neutral. This usually occurs just before a major breakout opportunity, which I call the PEMA Breakout. You can read more about this setup in my FREE eBook Profiting with Pivot-Based Moving Averages.

Crude Oil ($CL_F)

I’ll be watching $76.75 and $73.25 for early breakout scenarios. However, a breakout will only be confirmed once price closes beyond a prior price pivot – $78 up, or $72.75 down.

Let’s see how this one plays out!

Cheers!

Frank Ochoa
PivotBoss.com

Follow Frank on Twitter: http://twitter.com/PivotBoss

This Stock Could Move Big

Chipotle Mexican Grill ($CMG) has been an active mover for some time, most recently rallying from $127 to $154. However, bullish momentum seems to have dissipated at major resistance, which could spark another key sell-off in this stock. Here’s why..

Confluence of Resistance

The daily chart of $CMG shows price has stalled at a clear area of resistance over the last week of trading. This band of resistance stretches from $154 to $155.50 and includes visual resistance and the H3 Camarilla pivot level.

Since price was rejected in this area in June, thereby paving the way for a sell-off back to $127, we could see the same type of reaction in this area soon.

Chipotle Mexican Grill $CMG

If price cannot rise above $155.50, look for a potential sell-off back toward the bottom of the large trading at $127, with intermediate stops at L3 ($141.70) and L4 ($135.40).

A push below $148 could trigger selling pressure.

To read more about the Camarilla Equation, CLICK HERE.

PEMA Breakout

The 15-minute timeframe shows price is clearly coiling ahead of a major breakout opportunity. A triangle pattern has formed, which has a back end of about 6 points, which means a breakout could lead to a six point move from this pattern alone.

Also, the pivot-based multiple moving averages show the PEMA Breakout setup is brewing. As you recall, this setup usually precedes a major breakout opportunity.

Chipotle Mexican Grill $CMG

Watch $150 for an early downside break, and $153 for another test at resistance.

To read more about the PEMA Breakout setup, CLICK HERE.

Since price is holding at a significant area in the daily chart, and is clearly winding up in a lower timeframe, we could see big price movement out of this stock soonishly. Watch $150 for early weakness, and $148 for confirmed weakness.

Let’s see what happens!

Cheers!

Frank Ochoa
PivotBoss.com

Follow Frank on Twitter: http://twitter.com/PivotBoss

3 Stocks to Watch

The market is clearly winding up for a major breakout opportunity, as evidenced by the 1,000 point triangle that’s building out in the $DJI. I’ve got three stocks to watch that are poised to move once direction is decided.

1. $CME

$CME has dropped 40 points since I wrote the entry “3 Reasons to Sell $CME” last month. Now, $CME is holding at the critical support level of $264, which also has double-pivot confluence.

Both the S1 and L4 support levels are sitting on visual support, which means it’s going to take another round of strong initiative selling to push price through $264.

If $264 holds, expect a bounce back toward $294. Otherwise, a violation of support could send price spiraling to $220, which is the next significant area of support.

CME Group $CME

2. $NFLX

$NFLX has been extremely bullish over the last two years of trading, which has intensified the last six months.

Price is now coiling within a developing triangle pattern, which could spark the next 25 point move – as measured by the back end of the pattern.

An upside break would require a push through double-pivot resistance (R1 and H4) at $124, while a downside break must contend with double-pivot support (H3 and PP) at $114.

Netflix $NFLX

3. $AKAM

$AKAM is also developing a clear triangle pattern in the midst of a bullish advance. The back end of the pattern suggests a move of about 8 points once a breakout occurs.

The multiple moving average method indicates a PEMA Breakout could be developing in this stock, which means a breakout could be around the bend. Watch $45 and $41 for a confirmed breakout opportunity.

Akamai Technologies $AKAM

The market continues to build out ahead of a major breakout opportunity. Once direction is decided, these three stocks could be poised for big moves.

Let’s see what happens!

Cheers!

Frank Ochoa
PivotBoss.com

Follow Frank on Twitter: http://twitter.com/PivotBoss