Weekend Charting and Chat - 12th May 2017, page-19

Top Ten Momentum Stocks (ASX100) this week:

Qantas
FLT
ILU
BLD
PRY
CTX
SEK
CYB
HGG
ORG

Charts:

QAN


Too extended to the upside, indicators have turned down.  Wait for a pull-back to complete, e.g. Dynamic Stochastic falls below lower band, then breaks upwards.

FLT:




In the process of pulling back.  Wait for completion and new buy signal on indicators.

ILU



Pull back from 24 April completed.  On a "buy" signal on most indicators.  If it falls back below the 13-Day EMA (gray line), then exit.

BLD



BLD is topping out.  Most indicators show short-term sell signal.  Wait for a pull-back to complete.

PRY



PRY broke above the 200-Day MA three days ago.  On two previous occasions, such breaks have proved to be false breaks.  If this falls back below the 200-Day EMA (likely), then ignore.

CTX



CTX has had a great run and is now overbought.  Some indicators are on short-term sell signals.  Wait for an entry point lower down.  Money Flow is not extra strong.  Be cautious.

SEK



SEK, like several other stocks, has had a great run and now seems to be topping out.  Look how the bands on the Dynamic Stochastic have tightened right up, and the Index has now broken below the lower band.  Wait for a break back up inside the lower band.

CYB



This is showing a similar pattern to some other strong stocks.  Wait for a pull-back and then bounce.

CYB



CTB - ditto with other strong stocks.  Topping out.  Wait.

ORG



Caution with this one.  Money Flow is showing negative divergence.  This might be ok if it pulls back to horizontal resistance and then bounces.


Most of the above stocks have run very hard and are either pulling back or ready to pull back.  (ILU is the exception.)

If most of the momentum stocks are pulling back, we're either seeing a market top out - or a switching out of the leaders into other stocks.

Here's another pointer.  

I mentioned in my Weekly Report that the past week saw a return to Risk Assets.  So switching could be occurring.  Watch the Gold Miners.

XGD:



XGD is on a short term buy signal.  The chart is in a wide trading range.  A break above the 200-Day MA (blue line) should see a move up to the top of the range.  That could also see an adjustment in the strongest stocks/sectors.

RB