ZAGG (ZAGG) Bearish MACD points to further downside at 12.03 (SELL)

ZAGG extended the decline off the 14.00 high through the bearish rising wedge lower bounds (from 18/24/26 Oct lows) to test the 11.60 key support ahead of the current consolidation. In the meantime, the bearish MACD studies suggest further downside as well. A breakdown below 11.60 (Support 1) would initiate the next downleg towards 10.02 (Support 2). Clearance below would risk an extension towards 9.00 (Support 3) for a retest.

It would take strength above 12.75 (Resistance 1) to negate and re-open 13.33 (Resistance 2) which guards 14.00 (Resistance 3).

Trading Indication:
Short-term: Sell at 12.00 or higher;
Target at 10.02 and lower;
Stop Loss at 12.50 (2.0%)
Long-term: Possibly buy lower

LNKD (LinkedIn) at 80.10 Confirmed a Triple Top Reversal Pattern amid Bearish RSI Divergence (SELL)

LNKD extended the decline off the triple tops at 92.61/95.00/94.32 through the support zone of 82.99/83.60, confirming the triple top reversal pattern. In the meantime, the bearish RSI divergence (formed from 92.61/95.00 highs) suggests further downside. While the tough resistance at 85.49 near the former 82.99/83.60 support caps, scope remains for bears to seek 75.37 (Support 1). Clearance below would risk an extension towards the projected triple top target at 72.20 (Support 2). A breakdown there would expose the key 70.75 reaction low (Support 3) for a retest.

It would take strength above 85.49 (Resistance 1) to negate and re-open 91.33 (Resistance 2) which guards 95.00 (Resistance 3).

Trading Indication:
Short-term: Sell at 84.10 or higher;
Target at 72.20 and lower;
Stop Loss at 85.50 (1.7.0%)
Long-term: Possibly buy lower

RTH (Merrill Lynch Retail Holders) at 110.86 Staging a Bull Flag Breakout to Target the Record High (BUY)

RTH extended the rebound off the 106.61 low to break above the bear channel resistance (from 113.28/112.37/111.82 highs), ending the bull flag consolidation pattern. The upside break initiated the next upleg towards 113.28 for a retest (Resistance 1). Clearance above would re-open the 114.30 all-time high (13 May 2011) (Resistance 2). Further strength there would offer scope for the Fibonacci projection at 115.91 (0.618x 98.57/113.28 from 106.61, Resistance 3) ahead of the equality target at 121.63 (1.0x 98.57/113.28 from 106.61, Resistance 4).

However, a break below 108.61 would negate and expose 106.61 (Support 1). A clean loss there would confirm a lower swing high under the 113.28 resistance and risk a deeper setback towards 104.57 (Support 2). Further weakness there would allow bears to seek 98.57 (Support 3) for a retest.

Trading Indication:
Short-term (or Intraday): Buy at 109.80 or lower;
Target at 114.30 and higher;
Stop Loss at 108.60 (1.0%)
Long-term: Possibly sell higher

AAPL (Apple) at 404.36 Forming An Evening Star Reversal Pattern amid Bearish RSI Divergence (SELL)

AAPL posted an all-time-high at 426.70 (17 Oct high) before gapping down on 19 Oct, forming an evening star bearish reversal pattern. Since then, it has been consolidating under the 415.99 pre-gap low. The bearish RSI divergence (from 404.50/ 426.70 highs) also points lower. Failure to close the gap above 415.99 would recycle weakness towards a return to 390.75 (Support 1). Clearance below would suggest a lower swing high in place and risk an extension towards the key 354.26/353.02 support zone (Support 2). A breakdown there would expose the key 310.50 reaction low (Support 3) for a retest.

It would take strength above 415.99 to close the gap (Resistance 1). A break above would re-open 426.70 (Resistance 2). An upside breakout there would signal the end of the consolidation and initiate the next upleg towards the equality target at 462.19 (1.0 x354.26/426.70 from 390.75, Resistance 3).

Trading Indication:
Short-term: Sell at 408.0 or higher;
Target at 354.26 and lower;
Stop Loss at 416.0 (2.0%)
Long-term: Possibly buy lower

BAC (Bank of America) at 7.34 Breaking above 7-month Bear Channel to suggest higher (BUY)

BAC extended the rebound off the 5.13 YTD low (04 Oct) to break above the 7-month bear trendline (off 13.86/11.25/10.96 highs). The RSI divergence (from 6.31/5.13 lows) suggests continued strength higher. There is scope for bulls to target 8.80 (Resistance 1). An upside breakout there would signal a base in place and initiate the next upleg towards a series of lower highs starting from 10.05 (01 Aug high) (Resistance 2) then 10.28 (21 Jul) (Resistance 3) which guards 10.96 (07 Jul high) near the 10.91 key reaction low (30 Nov 2010) (Resistance 4).

However, failure to reclaim 8.80 would delay and re-open 6.90 (Support 1). A clean loss would expose 6.03 (Support 2). A breakdown there would form a potential swing high and risk a deeper setback towards the key 5.13 low (Support 3) for a retest.

Trading Indication:
Short-term (or Intraday): Buy at 7.15 or lower;
Target at 8.80 and higher;
Stop Loss at 7.05 (1.4%)
Long-term: Possibly sell higher

SWY (Safeway) at 19.08Potential Rounded Bottom Base Forming to Signal Higher (BUY)

SWY extended the recovery off the 16.06 YTD low (23 Sept) to probe the 18.91/18.99/19.20 resistance zone amid bullish RSI divergence and constructive MACD studies. An upside break above the 19.20 resistance is needed to confirm the base and shift the medium-term focus higher towards 22.50 (Resistance 1) near the base measured target. Further strength above would stage 23.60 (Resistance 2) ahead of 24.28 (Resistance 3).

However, failure to clear 19.20 would negate and re-open 17.26 (Support 1), loss of which would expose 16.12 (Support 2) which shields 16.06 (Support 3).

Trading Indication:
Short-term (or Intraday): Buy at 18.50 or lower;
Target at 22.50 and higher;
Stop Loss at 18.20 (2.0%)
Long-term: Possibly sell higher

M (Macy’s) at 29.73 31-month Bull Channel Underpins Further Advance (BUY)

M has ascended through a 31-month bull channel from (06 Mar 09/12 Aug 2011/07 Oct 2011 weekly lows/16 Oct 2009 weekly high). The recent advance off the 24.38 low (04 Oct 2011) near the bull channel support threatens the 30.62 high (22 Jul 2011) (Resistance 1) on the heels of a bull MACD cross. An upside breakout there would initiate the next upleg towards a series of lower highs starting from 31.55 (05 Dec 2007) (Resistance 2). Further strength above there would allow bulls to seek 33.76 (29 Oct 2007) (Resistance 3) which guards the 35.76 lower high (03 Oct 2007) (Resistance 4).

However, failure to reclaim 30.62 would delay and re-open 28.62 (Support 1). A clean loss would expose 24.38 (Support 2) for a retest. A breakdown there would form a potential swing high and risk a deeper setback towards the key 22.66/21.69 support zone (Support 3).

Trading Indication:
Short-term (or Intraday):
Buy at 29.00 or lower;
Target at 31.55 and higher;
Stop Loss at 28.60 (1.4%)

Long-term: Possibly sell higher