New Ideas

Last week ended on a weak note, so let’s start with a short. Comp De Minas Buenaventura ADS (BVN) has broken down out of a 10 month triangle. Potential target is 10.25.

Consolidated Edison (ED) had a very strong break out of a symmetrical triangle. Utilities in general seem to be on a strong uptrend – perhaps a flight to safety? Possible target 100.

Another flight to safety candidate, the iShares 20+ Yr Treasury Bond ETF (TLT) is breaking out of a descending triangle on the daily chart. Possible target 147.50.

Continuing the risk-off theme, here is the iShares 7-10 Yr Treasury Bond ETF (IEF), breaking out of a descending triangle. Possible target 116. The Municipal Bond ETF (MUB) is also on a pretty good run, but it has been running up for a while and it is tougher to see a pattern that presents a good entry at the moment.

Given the nature of last week’s market (down), please be careful with the following long side breakout candidates. If the market continues to correct, they will quickly turn into fake-outs.

General Dynamics (GD) broke above the upper boundary of a symmetrical triangle, possible target 204.

JetBlue Airways (JBLU) had a strong break above the upper boundary of an ascending triangle. Possible target 23.55.

The last one for this week is a bit of a flyer, but I think it deserves our attention. It’s Veoneer (VNE), an auto safety technology firm based in Sweden and listed on the NYSE. It’s definitely in the bottomfishing category, so tread carefully. It has been consolidating in an 8 month rectangle and is currently at the bottom of the rectangle. It could fall further, but it seems to be building a base in the 13 – 19 range.

Review

ADP – continued up early in the week, pulling back some on Friday, but holding well above support.

BKH – continued up through the week and held up well during the Friday pullback.

JYNT – hovering near the lower pattern boundary, and moved down a bit during the week. Hasn’t really made a strong commitment up or down. Watch.

MRVL – had a mixed week and is testing the support of the upper rectangle boundary. If price continues to fall, the pattern will become invalid around $25.

OKE – fell back from the test of local top and may continue to fall back to test the neckline of the inverted H&S.