Friday, August 9, 2013

HUI Rebounds Off Of Chart Support

by Dan Norcini

A very strong day in the mining universe today with some nice upside moves among the various miners. For once, instead of acting as a drag on gold, the shares helped lift it higher.
That being said, nothing much has yet changed from a technical chart perspective. The bulls have made a valiant effort here and have prevented the bears from kicking off another leg lower in price but all they have managed to do, thus far, is to secure that downside support level and keep price contained within a well-defined range.
For a trending move of any magnitude to develop, one side or the other needs to violate the range and take control of price.
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Health Net, Inc. (NYSE: HNT)

Health Net, Inc., through its subsidiaries, provides managed health care services. The company offers commercial health care products, such as health maintenance organization plans through contracts with participating network physicians, hospitals, and other providers; preferred provider organization plans that provide coverage for services received from health care provider; and point of service plans. It also provides Medicare products, including Medicare advantage plans with and without prescription drug coverage; and Medicare supplement products that supplement fee-for-service Medicare coverage. In addition, the company offers Medicaid and related products; indemnity insurance products; auxiliary non-health products, such as life, accidental death and dismemberment, dental, vision, and behavioral health insurance; and other specialty services and products comprising pharmacy benefits, behavioral health, dental, and vision products and services, as well as managed care products for hospitals, health plans, and other entities. Further, it engages in government-sponsored managed care federal contract with the Department of Defense under the TRICARE program in the North Region.
Please take a look at the 1-year chart of HNT (Health Net, Inc.) below with my added notations:
1-year chart of HNT (Health Net, Inc.) HNT is approaching a very important price of $30 based on two different levels of potential support. First, the $30 level itself (red) has simply been key to the stock on multiple occasions already. In addition, HNT has been holding an uptrending level of support (blue) as well and that trendline is also sitting near the $30 area.
The Tale of the Tape: HNT appears to be pulling back to $30. A long trade could be entered there with a stop placed below $30. However, a short play could also be made on a break of the two levels highlighted.
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Arch Crawford – What’s Next For Wall Street And The Economy?

from Financial Survival Network
Arch Crawford is back after a break. Stock markets seem to be topping and distribution days are becoming more frequent. This usually precedes a correction. How steep the correction will be is anyone’s guess, but it could be substantial. There’s great uncertainty in the markets and that’s certain to continue but the main beneficiary is bound to be gold and silver.
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Luxury Stock Could be a Source of Wealth for Short-Term Traders: Coach

Coach (COH) — Like most assets classes and stocks, this luxury handbag and accessories maker rallied hard off the 2009 lows. Unlike the broader market, however, the stock rallied into a medium-term blow-off top in March 2012. From there, after a too-steep-to-be-sustainable slope, the stock slipped a good 40% over the course of five months, retesting the lower end of a support line again in February 2013.
Another way of looking at the price action off the July 2011 reaction high, or the end of the steep rally off the 2009 lows, is to mark the vertical leap in the first quarter of 2012 as merely a dramatic overshooting out of a longer-standing consolidation phase. In other words, this consolidation phase began in July 2011 and lasts through the present. We can therefore also draw a line from the July 2011 highs to connect the dots, which puts COH exactly at key resistance right here and now (upper blue line on the chart above).
COH Daily Chart

Click to Enlarge

The daily chart reveals another consolidation phase with a tight pattern. After the stock gapped up on April 23, following its latest earnings announcement, it rallied higher for about a month. However, through a multi-month lens, COH ultimately settled into a consolidation phase.

After the stock’s latest rally off the June lows, it has worked itself back to the top of this range and is very close to breaking to a new year-to-date high, which could quickly lift COH 5% or more.
Despite the broader market’s seriously overbought readings, individual stocks developing tight patterns for breakouts continue to be found if one is willing to do a little digging. At this stage the trade I see setting up in COH is purely a breakout play rather than a level to initiate longer-term holdings.
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