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Apple, Broadcom

  Stock Focus List 01/02/2017          Published Saturday


GOAL of this Analysis:
> Identify stocks with positive technical indicators trading close to their Pivot Point

CRITERIA for selection include:
- NASDAQ & NYSE
- $40 +
- 1,000,000 + shares per day
- Above 20 & 50-day moving average (dMA) 
- Challenging BASING Stage resistance
- Close to Pivot Point (ideal buy price) - no more than 5% above pivot
- Relative Strength Index (RSI) above 50-centerline and below 70 (70 + extended)
- Heavy (2x) or Surging (3x) Volume
- Positive Momentum (MACD)
- Positive Chaikin Money Flow (CMF)

4 stages of a stock cycle: Basing, Advancing, Topping,
Declining


Definition of a Pivot Point:
> Price that is $0.10 (10 cents) above the most recent resistance (intra-day high).

> Another way of stating: Pivot Point is the price where a rising stock faces the final level of overhead resistance.
Once it trades above this level, there is greater probability the stock may rise as sellers whom wanted to sell have
been shaken out (or concluded their selling). 

> A Pivot Point may be referred to as the Ideal Buy Price.


Definition of Breakout: A breakout occurs when a stock makes a NEW HIGH OVER PREVIOUS RESISTANCE HIGH WITH SURGING VOLUME - volume to be at least 50% above average and ideally 2x and greater. A new high over previous high with average or light volume does not constitute a breakout. Heavy volume MUST support the move.

Note:
Securities that breakout might be pressured to pullback into a base and possibly re-test support levels.
In an upward biased / BULL MARKET, breakouts typically gain substantial momentum. In a downward biased / BEAR MARKET >
not a buy & hold environment. MUST monitor often & employ a stop loss limit. 


Disclaimer:
Material is provided for EDUCATIONAL & EVALUATIVE PURPOSES only and does not constitute a recommendation or endorsement to buy, sell or hold with respect to any security or investment. Chart analysis is an interpretation and subjective process. There are no guarantees the stocks presented will perform in the manner of the interpretation as many factors can affect performance.


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