New Ideas

Note – I have switched the order so that New Ideas are listed first, with a Review of last week’s charts following.

Alteryx (AYX) had a strong week, blasting through 40 week EMA and the upper boundary of a symmetrical triangle. It tested resistance formed by the base of the triangle. Possible target, if it can overcome this minor resistance, is 138.00.

Lattice Semiconductor (LSCC) has formed a 5 month rectangle and made a strong attempt at a breakout last week. I still consider it to be in “Watchlist” mode, and would like to see another daily close above the rectangle upper boundary. Possible target is 23.60.

MongoDB (MDB) has formed a symmetrical triangle and moved strongly last week, breaking the 40 week EMA and testing the upper triangle boundary. Note that this could also be classified as an inverted Head & Shoulders (if you extent the upper boundary to the left), but I prefer H&S patterns with near-horizontal necklines, so I call this a symmetrical triangle. MDB pierced the upper boundary of the triangle and tested minor resistance from November before pulling back slightly. Possible target is 182.00.

Zendesk (ZEN) has formed an inverted Head & Shoulders. The neckline and the 40 week EMA, which are similar, were broken last week. Price closed above the neckline, testing the recent high from the last week of August before pulling back slightly. Possible target is 94.50.

Review

XLI – After the previous week’s attempt to go higher, the Industrials ETF took a breather. It tried to go higher, but it suffered a large pullback on Friday, as did many equities. It has now been consolidating for 10 weeks above the two-year Head & Shoulders neckline.

EWZ – The Brazil ETF fell throughout the week, ending below the upper border of the ascending triangle.

HYG – The High Yield Corporate Bond ETF had a good week, continuing it’s climb towards the possible target of 90.35.

USO – The United States Oil ETF fell as spectacularly as it rose as Middle East tensions cooled. It ended the week below the descending triangle upper boundary.

NOV – Similar to USO, it ended the week below the inverted Head & Shoulders neckline.

KO – Coca-Cola ended the week up after trying to test the local high of 51.29. It came close, hitting 51.27, before pulling back a bit. It is still in “Watchlist” mode, having not closed convincingly above the upper boundary of the rectangle.

LOW – Lowe’s had a decent week, advancing a bit before a minor pullback on Friday. It is still hovering above support of the upper boundary of the ascending triangle.