POT (Potash) at 45.69 Forming Potential Double Bottom near Long-term Support Zone (Intraday BUY)

POT extended the decline off the 60.42 high to reach 44.50 (26 Sept low) and 44.52 (29 Sept low) near the 3-1/2-year 43.76/42.93 key support zone (28 Jan/7 Feb 2008). The bullish RSI divergence suggests a potential double bottom forming from the 44.50/44.52 lows. Recycled strength above 47.40 (Resistance 1) near the 2-week falling trendline (from 58.36 high) would re-open 50.41(Resistance 2) which, if breached, would confirm the double bottom and extend the rebound towards 54.32 (Resistance 3).

However, a break below 44.50 would risk a 43.76/42.93 retest. That would negate and stop out the trade.

Trading Indication:
Short-term (Intraday): Buy at 45.00 or lower;
Target at 50.41 and higher;
Stop Loss at 44.50 (1.0%)
Long-term: Possibly sell higher

NUS (Nu Skin Enterprises ) at 41.75 Heading Lower following Breakdown from Triangle Consolidation (Intraday SELL)

NUS posted a new YTD high at 46.93 (20 Sept) underpinned by the 22-day bull trendline. The downside reversal paused near the bull trendline forming a 3-day triangle consolidation pattern before breaking down. The oversold RSI and bearish trend studies continue to point lower. While the 43.28/44.48 resistance zone caps, scope remains for further weakness towards 40.55 (Support 1) then 38.85 (Support 2) ahead of 36.41 (Support 3).

However, recycle strength above 43.28 would negate and stop out the trade.

Trading Indication:
Short-term (Intraday): Sell at 42.50 or higher;
Target at 38.85 and lower;
Stop Loss at 43.28 (2.0%)
Long-term: Possibly buy lower

WFM (Whole Foods Market, Inc.) at 71.00 RSI Bearish Divergence Signals Potential Topping (Intraday SELL)

WFM probed below the 70.69 low to confirm the RSI bearish divergence from the 72.76/72.85 highs which are short of the 73.33 all time high. While the 72.85/73.33 key resistance zone caps, scope remains for further weakness towards 69.04 (Support 1) then 66.51 (Support 2). A downside break there would confirm the lower high at 72.85 and initiate the next leg down towards 64.37 near the 6-1/2-week trendline support (Support 3).

However, recycle strength above 72.85 would negate and stop out the trade.

Trading Indication:
Short-term (Intraday): Sell at 71.50 or higher;
Target at 66.51 and lower;
Stop Loss at 72.85 (2.0%)
Long-term: Possibly buy lower

FCX (Freeport-McMoran Copper & Gold) at 33.93 Breaks out of 3-day Base (Intraday BUY)

FCX broke out of the 3-day base with the intraday RSI shifting upwards. While the 30.97/31.15 intraday support zone holds, scope remains for further upside towards 35.35 (Resistance 1) for gap closure near the down trendline (from the 16 September high). An upside break above the trendline resistance is needed for further strength towards 37.41 (Resistance 2) then 38.63 (Resistance 3) which guards 40.77 (Resistance 4).

It would take a return through the 31.15/30.97 support to negate the rebound and stop out the trade.

Trading Indication:
Short-term (Intraday): Buy at 31.80-32.50 or lower;
Target at 35.56, 37.41, 38.63 and higher;
Stop Loss at 31.15 (>2.0%)
Long-term: Possibly sell higher

USO (United States Oil Fund) at 31.30 Rising Wedge Breakdown Underpins Further Decline towards 25.50 (SELL)

USO completed a multi-month head-and-shoulder top after breaking below the 35.14 neckline support to reach 30.31 (09 Aug). The current 6-week consolidation formed a bearish rising wedge pattern ahead of the breakdown towards 30.31 (Support 1) for a potential retest. Clearance below would open 28.23 (Support 2). (30 Apr 2009 low) which guards 25.50 (head-and-shoulder top target measured from 35.14) (Support 3).

It would take a return above 34.06 (Resistance 1) to neutralize the near-term selling pressure and re-open 35.08 (Resistance 2) near the wedge resistance and the neckline as well. Only a decisive breach of the strong resistance zone would negate the wedge pattern and allow bulls to seek 39.25 (Resistance 3).

Trading Indication:
Short-term (Intraday): Sell at 32.30 or higher
Target at 28.23 and lower; Stop Loss at 33.00 (2%)
Long-term: Possibly buy lower

IWM (iShares Russell 2000) at 66.41 Potential Breakdown from the Triangle Consolidation Pattern (SELL)

IWM has been consolidating within a 7-week triangle pattern (from 12 Aug low/02 Sep high) following the sharp decline to reach 63.76 (12 Aug). The bearish momentum and trend studies on the weekly chart remain pointing lower. A break below 66.37 near the triangle support (from 12/26 Aug weekly lows) would open 63.76 (Support 1) for a potential retest. Clearance below would confirm the bearish triangle pattern and initiate the next leg-down towards 58.80 (Support 2). Further weakness below would allow bears to seek 47.42 (Support 3).

However, recycled strength above 73.89 (Resistance 1) would negate the near-term weakness and re-open 80.99 (Resistance 2). A sustained break above would shift the medium-term focus towards 85.97 (Resistance 3).

Trading Indication:
Short-term (Intraday): Sell at 67.00 or higher
Target at 58.80 and lower; Stop Loss at 69.00 (3%)
Long-term: Possibly buy lower

CTRP (Ctrip.com International) at 38.19 Forming Potential Multi-month Top on Break Below Key Level (SELL)

CTRP broke through the 2-1/2 year rising trendline (from 06 Mar 2009/18/25 March 2011 weekly lows) to reach 35.36 before consolidation took hold. The bearish momentum and trend studies on the weekly chart continue to point lower. While 43.20 (02 Sep high) near the long-term trendline resistance caps, scope remains for a retest of the 35.36 (12 Aug low)/35.44 (09 May 2008 high) support/resistance cluster near the key level at 35.00 (Support 1). A downside break there would weaken the medium-term outlook and initiate the next down-leg towards 31.35 (Support 2) near 50% retracement of the 9.50 (06 Mar 2009 low)/53.16 (05 Nov 2010 peak) rally. Further weakness there would expose 26.59 (Support 3) near 61.8% of retracement. However, recycled strength above 43.20 (Resistance 1) would improve the outlook and allow bulls to seek 47.54 (Resistance 2) which guards 50.47 (Resistance 3).

Trading Indication:
Short-term (Intraday):
Sell at 42.5 or higher
Target at 31.35 and lower; Stop Loss at 43.20 (1.7%)
Long-term: Possibly buy lower

AAPL (Apple) at 414.99 Extends Gains Following Breakout of the 7-week Triangle (BUY)

AAPL broke out of the 7-week triangle consolidation before posting new all-time highs. While the 2-1/2 year rising trendline support (from 13 Mar 2009/07 May 2010/24 Jun 2011 lows) hold, scope remains for bulls to target 443.67 (Resistance 1) then 479.15 (Resistance 2) which guards 518.64 (Resistance 3) (all Fibonacci projections).

However, a clean break below 353.02 (Support 1) near the long-term rising trendline support would confirm the trendline break suggesting further downside. Below would open 310.50 (Support 2). A clean loss there would expose 275.00 (Support 3).

Trading Indication:
Short-term (Intraday): Buy at 360.00 or lower;
Target at 443.67 and higher; Stop Loss at 353.00 (2.0%)
Long-term: Possibly sell higher

ICE (IntercontinentalExchange Inc.) at 123.46 Forming Bearish Divergence within a Long-Term Rising Channel (SELL)

ICE has been trading within a 39-month rising channel (from 05 Jun 2009 high/10 Jul 2009 low) while forming bearish weekly RSI divergence from 121.93 (05 Jun 2009 weekly high)/135.36 (11 Mar 2011 weekly high). While the 131.72 lower high caps, there is scope for bears to retest 102.57 (Support 1) near the channel support (from 83.00/92.18 lows). Clearance below would confirm the channel breakdown and initiate the next down-leg towards 92.18 (Support 2) then 83.00 (Support 3). Further decline there would open 60.39 (Support 4) for a potential retest.

However, ICE rebounded off the 102.57 low near the channel support on the heels of a weekly MACD cross above signal line. This also suggests that scope remains for further gains towards for 131.72 (Resistance 1). Only a sustained break above would shift the medium-term focus towards the 135.36 YTD high (Resistance 2). An upside breakout there would allow bulls to seek 160.10 (Resistance 3).

Trading Indication:
Short-term (Intraday):
Sell at 129.00 or higher
Target at 102.57 and lower; Stop Loss at 131.75 (2.1%)
Long-term: Possibly buy lower

TLAB (Tellabs, Inc.) at 4.48 Broke out of the 5-month Wedge Pattern (BUY)

TLAB broke out of a 5-month wedge pattern following the new YTD low at 3.67 (23 Aug). The bullish MACD studies on the daily chart suggest that scope remains for further near-term strength towards 4.68 (Resistance 1). A sustained break there would allow bulls to target 5.47 (Resistance 2) near 50% retracement of the 7.31 (13 Jan 2011 high)/3.67 decline ahead of 5.80 (Resistance 3) near 61.8% retracement.

However, a breakdown below 3.91 (Support 1) would negate and re-open the 3.69/3.67 key support zone (Support 2). A clean loss there would initiate the next leg-down towards 3.52 then 3.10 (03 Mar 2009/10 Oct 2008 lows, Support 3 zone).

Trading Indication:
Short-term (Intraday): Buy at 4.00 or lower;
Target at 4.68 and higher; Stop Loss at 3.90 (2.5%)
Long-term: Possibly sell higher

GS (Goldman Sachs) at 107.01 Forming a Bullish Outside Week Candle (BUY)

GS posted a new YTD low at 99.78 (12 Sep) while sliding within a multi-week falling wedge. The reversal off the new low formed a bullish outside weekly candle (as of 16 Sep). The oversold weekly RSI shifting upwards indicates that scope remains for further recovery towards 118.10 (Resistance 1). An upside break there would shift the medium-term focus, promoting further recovery towards 129.50 (Resistance 2) ahead of 139.25 (Resistance 3) near 50% retracement of the 175.34/99.78 decline.

However, a breakdown below 99.78 (Support 1) would negate and initiate the next leg-down towards 92.55 (Support 2) then 79.27 (Support 3) near 76.4% retracement of the 47.41/193.60 rally.

Trading Indication:
Short-term (Intraday):
Buy at 102.0 or lower;
Target at 129.50 and higher; Stop Loss at 99.75 (2.25%)
Long-term: Possibly sell higher

MS (Morgan Stanley.) at 15.49 Forming a Wedge Pattern While Seeking a Bottom (BUY)

MS posted a new YTD low at 14.71 (12 Sep) while sliding within a multi-week wedge. The potential bullish divergence of RSI studies on the daily chart (from 08 Aug/12 Sep lows) suggests that a near-term bottom cannot be ruled out. A break above 16.40 (Resistance 1). near the upper bounds of the wedge would neutralize the immediate weakness, promoting further recovery towards 17.73 (Resistance 2) ahead of 18.89 (Resistance 3).

However, a breakdown below 14.71 (Support 1) would negate and initiate the next leg-down towards 13.83 then 13.10 (21/20 Jan 2009 lows, Support 2/3).

Trading Indication:
Short-term (Intraday):
Buy at 14.90 or lower;
Target at 17.73 and higher; Stop Loss at 14.70 (1.7%)
Long-term: Possibly sell higher

DAG (DB Agricultural Double Long ETN.) at 15.15 Pulling Back to Retest the Breakout of the Bullish Pennant Pattern (BUY)

DAG broke out of a six-month bullish pennant formation (from 04 Mar high/15 March low) to reach 16.49 (31 Aug high) before consolidation took hold. The current pullback is anticipated to form a higher swing low near the falling trendline support (from 04 Mar/04/25 Apr highs, former pennant resistance) at 14.34 where bulls may reassert ahead of a return through 15.32 (12 Sep high, Resistance 1). An upside break there would stage 15.77 (Resistance 2) then 16.49 (Resistance 3). Further strength would allow bulls to seek the 16.93 YTD high (10 Feb, Resistance 4).

However, a break below 14.34 would negate and expose 13.82 (19 Aug low, Support 1) then 12.89 (09 Aug higher low, Support 2). Further weakness below would risk a deeper setback towards 12.05 (30 Jun low, Support 3) for a potential retest.

Trading Indication:
Short-term (Intraday):
Buy at 14.35 or lower;
Target at 15.77 and higher; Stop Loss at 14.10 (1.7%)
Long-term: Possibly sell higher

YHOO (Yahoo.) at 14.46 FORMING A POTENTIAL SWING HIGH AT MAJOR RESISTANCE (SELL)

YHOO rebounded from the YTD low at 11.09 (08 Aug) to break above the 3-1/2-month falling trendline (from 09 May/08 Jul/17 Aug highs), retracing over 38.3% of the 18.84/11.09 decline. The positive momentum suggests that further corrective strength is possible towards the major resistance zone from 15.41 (26 Jan low), 15.63 (16 May low) to 15.95 (07 Jul lower high) near 61.8% retracement of the retracement (Resistance 1) where bears may reassert to form a potential swing high. A downside reversal would target 12.45 (Support 1) which, if breached, would open 11.88 (Support 2) ahead of 11.09 for a potential retest (Support 3). However, a break above the 15.41/15.95 major resistance zone would negate the bearish scenario and allow bulls to seek 16.99 next which guards the 18.84 YTD high.

Trading Indication:
Short-term (Intraday):
Sell at 15.70 or higher;
Target at 12.45 and lower; Stop Loss at 16.00 (2.0%)
Long-term: Possibly buy lower

CSCO (Cisco.) at 16.21 Breaking Above Reverse Head-and-Shoulders Bottoming Pattern (BUY)

CSCO broke above the 3-1/2-month reverse head-and-shoulders resistance (from 31 May/21 Jul/11 Aug highs). The positive daily MACD studies suggest that there is scope for further strength towards 16.82 (31 May high, Resistance 1).) then 17.99 (11 May high, Resistance 2) near 50% retracement of the 22.34/13.30 seven-month decline. An upside break there would allow bulls to seek 19.70 near the head-and-shoulder target at 19.30 (Resistance 3).

However, a break below 15.41 (07 Sept low, Support 1) would expose the right shoulder support at 14.90 (19 Aug low, Support 2). Further weakness below would risk a deeper setback towards 13.30 (09 Aug 2011 YTD low, Support 3).

Trading Indication:
Short-term (Intraday):
Buy at 15.20 or lower;
Target at 17.99 and higher; Stop Loss at 14.90 (2.0%)
Long-term: Possibly sell higher
 

NVDA (Nvidia Corp.) at 14.25 Breaking Out of A Bullish Wedge and 6-month Bear Trendline (BUY)

NVDA broke out of the 5-week bullish wedge pattern (02 Aug high/08 Aug low) which converges with the 6-month bear trendline (from 17 Feb/31 May/01 Jun highs). The breakout confirmed the bullish RSI divergence formed from the 08 Aug to 19 August 2011 lows on the daily chart. While the wedge support (from 02/12 Aug highs) holds, there is scope for bulls to re-open the 15.36 lower high (02 Aug, Resistance 1). Clearance above would extend gains towards 16.26 (05 Jul high, Resistance 2) ahead of 19.96 (01 Jun lower high, Resistance 3). However, a break below 12.38 (06 Sept low) (Support 1) would expose the key 11.65 low (19 Aug YTD low, Support 2) near the wedge support. Sustained weakness below would initiate the next down leg towards 10.36 (07 Oct 2010 low, Support 3).

Trading Indication:
Short-term (Intraday):
Buy at 13.25 or lower;
Target at 16.26 and higher; Stop Loss at 13.00 (2.0%)
Long-term: Possibly sell higher

AUDUSD (Australian Dollar / U.S. Dollar) at 1.0570 Bearish Divergence on the Weekly Chart Points Lower (SELL)

AUDUSD formed a bearish divergence from 02 May/27 Jul weekly highs ahead of the the decline to test the 28-month long-term rising trendline from Mar 2009 low. While the deteriorating MACD and RSI on the weekly chart continue to point lower, scope remains for further weakness towards 1.0360 (Support 1) near the long-term trendline then the key 0.9925 support (Support 2) for a potential retest. A breakdown below there would open 0.9533 (Support 3) near the 50% retracement of the 0.8062 (25 May 2010 low)/1.1085 (27 Jul 2011 high) 14-month upswing. It would take strength back above 1.0764 (01 Sept high, Resistance 1) to stabilize the market. An upside break there would re-open the significant 1.1085/1.1016 resistance zone (Resistance 2/3).

Trading Indication:

Short-term (Intraday):

Sell at 1.0630 or higher

Target at 0.9925 and lower; Stop loss at 1.0765 (1.9%)

Long-term: Possibly buy lower

S&P 500 cash index (SPX) at 1173.97 POTENTIALLY FORMING A BEAR FLAG PATTERN (SELL)

SPX extended the 19-day consolidation (since 09 Aug YTD low) to form a potential bear flag. The recent advance stalled at 1230.71 (31 Aug) near the rising channel resistance (from 09/22 Aug lows/15 Aug high). The subsequent decline exposes 1135.91 (Support 1) near the lower bounds of the channel then the key 1121.09/1101.54 support zone (Support 2). A breakdown below there would open 1139.70 (27 Aug 2010, Support 3) for a potential retest. It would take strength back above 1230.71 (Resistance 1) to stabilize the market. An upside break there would re-open the significant 1249.05/1258.0 resistance (Resistance 2) (former support, 16 Mar/16 Jun lows). Only reclaiming the resistance zone would allow bulls to target 1286.56 (Resistance 3). near 76.4% retracement of the 1347.00/1101.54 fall.

Trading Indication:
Short-term (Intraday):
Sell at 1180.00 or higher
Target at 1100.00 and lower; Stop loss at 1203.0 (1.9%)
Long-term: Possibly buy lower

IAG (Iamgold Corp.) at 21.39: 13-month Rising Trendline Supports Consolidation (BUY)

IAG has been basing above the 21-month falling trendline support (former resistance from 02 Dec 2009/12 May 2010/09 Nov 2010 highs) and the 13-month rising trendline support (from 27 Jul/17 Nov/01 Dec 2010 lows) since forming the double top at 23.38 (24 Mar/06 Apr 2011 YTD highs). The recent advance off the 18.20 low (11 Aug) extended to reach 21.81 (02 Sept) near the 5-month bear trendline (from 07/08 Apr/25 Jul highs) which, if breached, would expose the 22.20 pivot high (Resistance 1). With the daily trend/momentum studies still constructive, scope remains for bulls to target 23.38 (Resistance 2). Clearance above would initiate the next upleg towards the equality target at 25.00 (projected 16.06/23.38 from 17.69, Resistance 3). However, a break below 19.26 (Support 1) would indicate continuation of the 5-month base and reopen 18.20 (Support 2), then 17.69 (Support 3) near the 13-month rising trendline support where bulls may reassert.

Trading Indication:
Short-term (Intraday):
Buy at 20.30 or lower;
Target at 22.20 and higher; Stop Loss at 20.00< (1.50%)
Long-term: Possibly buy lower at 18.20

USO (United States Oil Fund) at 34.45 BEAR FLAG UNDER 10-MONTH HEAD-&-SHOULDER RESISTANCE (SELL)

USO’s corrective bounce off the 30.31 YTD low (09 Aug) within an upward channel indicated a bear flag and stalled at 34.89 (01 Sep high), just short of the formidable 35.14 shoulder resistance of the head-and-shoulder top pattern formed over the last 10 months. While the upper bounds of the channel near 35.14 caps, there is scope for a swing high ahead of a downside reversal. A break below the pre-gap low at 33.69 (Support 1) would expose 30.31 for a potential retest (Support 2). Additional weakness there would risk a deeper setback towards 25.50, the head-and-shoulder target (from 45.60/35.14, 02 May high/27 Jun low, Support 3). However, reclaiming 35.14 (Resistance 1) would negate the bear flag/head-and-shoulder patterns and shift the near-term focus higher. An upside break there would stage 37.33 (Resistance 2), near 50% retracement of the 45.60/30.31 ahead of 39.25 (Resistance 3) near 61.8% retracement.

Trading Indication: Short-term (Intraday):
Sell at 34.70 or higher;
Target at 30.31 and lower; Stop Loss at 35.20> (1.4.0%)
Long-term: Possibly buy lower

ZIP (Zipcar Inc.) at 21.20 PROBING 4-MONTH BEAR TRENDLINE RESISTANCE (SELL)

ZIP rebounded off the 17.03 YTD low (22 Aug) to probe the former 4-month bear trendline resistance (from 20 Apr/14 Jul/01 Aug highs), reaching 22.00 (31 Aug high) before consolidating. While the significant lower high at 22.08 (Resistance 1) near the former bear trendline caps, scope remains for bears to target 20.71 (Support 1) then 19.15 (Support 2). A clean loss there would open 17.03 (Support 3) for a potential retest. However, renewed strength above 22.08 would shift the near-term focus higher. An upside break there would stage 23.46 (Resistance 2), near 50% retracement of the 30.80(20 Apr YTD high) /17.03 decline, ahead of 25.88 (Resistance 3) near 61.8% retracement.

Trading Indication: Short-term (Intraday):
Sell at 21.60 or higher;
Target at 19.15 and lower; Stop Loss at 22.05> (2.0%)
Long-term: Possibly buy lower

LNKD (Linkedin Corp.) at 84.10 BREAKING ABOVE 22-DAY BEAR TRENDLINE RESISTANCE (BUY)

LNKD rebounded off the 70.04 low (25 Aug) following the bullish RSI divergence formed from the 08 to 25 August lows on the daily chart and breached the steep 22-day bear  trendline resistance (from 28 Jul/15/26 Aug highs) to reach 89.31 (31 Aug high) before consolidating. While 80.73 holds, scope remains for bulls to target the 93.53 key lower high (Resistance 1) near 50% retracement of the 115.05 (28 Jul high)/70.04 decline. An upside break there would stage 96.20 (Resistance 2) ahead of 100.44 (Resistance 3).
It would take a return through 80.73 to shift focus lower. A downside break below would reopen 75.89 (Support 2) which guards 70.04 (Support 3) for a potential retest.

Trading Indication:
Short-term (Intraday):
Buy at 82.30 or lower;
Target at 93.58 and higher; Stop Loss at 80.70< (2.0%)
Long-term: Possibly sell higher

FXCM (FXCM Inc.) at 11.69 BREAKING OUT OF A BULLISH WEDGE PATTERN (BUY)

FXCM has broken out of a falling wedge pattern (from 16 Aug high/19 Aug low) following the bullish RSI divergence formed from the 25 May to 09 August 2011 lows on the daily chart. While the 10.57 pivot low holds, there is scope for bulls to re-open the August high at 12.66 (Resistance 1). An upside break there would confirm the higher low at 10.57 and extend gains towards 13.35 (Resistance 2), then possibly 14.14 (Resistance 3). However, a break below 11.36 near the wedge upper bounds would delay and expose the 10.57 key support (Support 1). A downside break there would confirm a lower swing high under 12.66 and risk a deeper setback towards 9.43 (Support 2) ahead of 8.13 (09 Aug YTD low, Support 3).

Trading Indication: Short-term (Intraday):

Buy at 11.22 or lower;
Target at 12.66 and higher; Stop Loss at 11.00< (2.0%)
Long-term: Possibly sell higher