PHM (PulteGroup) at 6.13 Extends Rally on Break Above the 3-week Bear Trendline (BUY)

PHM extended the rebound off the 5.08 low (23 Nov 2011) to break above the 3-week bear trendline resistance (from 11/18/25 Nov 2011 weekly highs), initiating the next upleg towards 7.03 (Resistance 1) near the double bottom pattern (at 3.40/3.29 lows) target measured from 5.16. Clearance above would open 7.97 (Resistance 2) near the equality target of the upswing (from 3.29/6.04) for a retest.

Meanwhile, failure to sustain strength above the 6.04/6.13 resistance would delay and re-opens 5.08 (Support 1). A downside break there is needed to avert the upside and expose 4.72 (Support 2) ahead of 3.29 (Support 3).

Trading Indication:
Short-term: Buy at 5.55 or lower;
Target at 7.90 and higher;
Stop Loss at 5.45 (1.50%)
Long-term: Possibly sell higher

WMT (Wal-Mart Stores) at 58.18 Breakout of A 11-month Bear Channel on the Weekly Chart Underpins Rally (BUY)

WMT extended the rebound off the 49.94 pivot low (23 Sept 2011) to break above the 11-month bear channel resistance (from 57.90/56.03 highs/50.97/48.31 lows) on the weekly chart before consolidating. With the weekly trend studies still constructive, a higher swing low is anticipated to form above 49.94 ahead of a return through 56.39 (Resistance 1). Further strength above the latter would allow bulls to retest 57.90 (Resistance 2). An upside break there would confirm a base in place and initiate the next upleg towards 59.23 (12 Dec 2008 high, Resistance 3) which guards the 3-year range high at 63.85 (19 Sept 2008 peak, Resistance 4).

However, a break below 49.94 (Support 1) would delay and reopens 48.31 (Support 2) near the bear channel support. Only a downside break there would avert the upside and expose the key 3-year range low at 46.25 (06 Feb 2009) for a retest (Support 3).

Trading Indication:
Short-term: Buy at 51.00 or lower;
Target at 57.90 and higher;
Stop Loss at 50.00 (2.0%)
Long-term: Possibly sell higher

BA (Boeing) at 64.90 Potential Bear Channel Formation on the Weekly Chart Points Lower (SELL)

BA extended the decline off the current cycle (2009-2011) high at 80.65 (06 May 11) decisively through the 15-month bull trendline support (from 59.48/61.84/62.82 lows shown as pink line) to confirm a double top formation (at 76.00/80.65 highs). It reached 56.01 (12 Aug 11) before consolidating within a bear channel (67.73/68.76 highs/56.01/56.90 lows). A clean break below the 56.01/56.90 channel support (Support 1) is required to confirm the bear channel formation and initiate the next downleg towards 54.80 (Support 2) near 50% of the 29.05/80.65 rally then 47.18 (Support 3) near 61.8% retracement and close to the 47.33 double top target measured from 68.50 (bull trendline break) as well.

It would take strength above the key 68.76/71.63 resistance zone (Resistance 1) including the channel upper bounds and the pink bull trendline resistance (former support) to negate and confirm a base, shifting focus higher towards 78.35 (Resistance 2) ahead of 80.65 (Resistance 3) for a retest.

Trading Indication:
Short-term: Sell at 68.90 or higher;
Target at 47.18 and lower;
Stop Loss at 70.10 (1.70%)
Long-term: Possibly buy lower

UUP (PowerShares DB US Dollar Index Bullish) at 22.43 A Potential Higher Low on the Weekly Chart Signals Further Upside (BUY)

UUP extended the rebound off the 21.07 low (27 Oct) on the weekly chart to seek a retest of the 22.62 high. The bullish MACD studies suggest further upside. A clean break above the latter (Resistance 1) would confirm the higher low at the 21.07 low and initiate the next upleg towards the 23.40/23.52 resistance zone (Resistance 2). Clearance above there would allow bulls to target 24.22 (Resistance 3).

However, in the event of a break below 21.58 (Support 1) would delay and reopens 21.07 (Support 2). Only a downside break there would avert the upside and expose the key 21.03/20.84 support zone for a retest (Support 3).

Trading Indication:
Short-term: Buy at 21.80 or lower;
Target at 23.52 and higher;
Stop Loss at 21.58 (1.0%)
Long-term: Possibly sell higher

INT (World Fuel Services Corp.) at 39.42 Confirmed a Double Top amid Bearish RSI Divergence to Point Lower (SELL)

INT extended the decline off the 42.12 high (11 Nov 2011), just shy of the 42.15 peak (25 Feb 2011), through the 39.23 pivot support to confirm a double top formation (at 42.03/42.12 highs). Further weakness below 36.70 would expose the 37.00 higher low (Support 1). A breakdown there would open 35.10 (Support 2) which guards 31.58 (Support 3).

It would take strength above 40.00 (Resistance 1) to delay bears. However, only above 40.66 (Resistance 2) would negate and shift focus higher towards 42.12(Resistance 3) for a retest.

Trading Indication:
Short-term: Sell at 39.70 or higher;
Target at 37.00 and lower;
Stop Loss at 40.10 (1.0%)
Long-term: Possibly buy lower

SPRD (Spreadtrum Communications) at 23.56 Confirmed a Double Top amid Bearish RSI Divergence Points Lower (SELL)

SPRD extended the decline off the record high at 29.98 (16 Nov) decisively through the 25.50 pivot support to confirm a double top formation (at 28.75/29.98 highs). The bearish RSI divergence (comparing 28.75/29.98 highs) suggests further downside as well. Further weakness exposes 20.65 (Support 1) near the rising trendline support (off 8.59/16.52/16.11 lows) and close to the 21.50 double top target measured from 25.50. A breakdown below there would open the 16.11/16.52 support zone (Support 2) near the 61.8% retracement of the 8.59/29.98 rally.

It would take strength above 26.96 (Resistance 1) to delay bears. However, only above 29.39 (Resistance 2) would negate and shift focus higher towards 29.98 (Resistance 3) for a retest.

Trading Indication:
Short-term: Sell at 26.40 or higher;
Target at 20.65 and lower;
Stop Loss at 27.00 (2.3%)
Long-term: Possibly buy lower

ULTA (Ulta Salon) at 69.02 Potential Rising Wedge amid RSI Bearish Divergence Points Lower (SELL)

ULTA extended the decline off the record high at 75.69 (07 Nov) to test the 3-month rising wedge support line (from 48.28/51.64/64.03 lows) which held. However, the bearish RSI divergence (comparing 74.00/75.69 highs) suggests further downside. A downside break of 67.76 near the rising trendline support is required to confirm the top in place and allow bears to target 64.03 (Support 1). Clearance below would risk an extension towards 58.71 (Support 2) ahead of 51.64 (Support 3).

It would take strength above 71.71 (Resistance 1) to delay bears. However, only above 74.38 (Resistance 2) would negate and shift focus higher towards 75.69 (Resistance 3) for a retest.

Trading Indication:
Short-term: Sell at 70.80 or higher;
Target at 58.71 and lower;
Stop Loss at 71.75 (1.3%)
Long-term: Possibly buy lower