Wednesday, November 2, 2011

Active Stock Screen: November 2nd

The previous running of this scan on October 19th was closely associated with the last swing high in the markets. The past couple of days have seen the bulk of these gains erased, but not to the extent markets are gasping for support. How have these losses impacted on our top-8 stocks as ranked by Market Cap?

The active stock screen used the following criteria:

Apple (AAPL) continues to hold top-dog spot and is trading well inside its rising channel. The 50-day moving average is playing as support. Even modest breaks of this moving average have failed to dampen buying enthusiasm. For now, this pattern remains unchanged until proved otherwise.

Zignals Chart Image

The first of a group of commodity based stocks, Rio Tinto (RIO), has faced the opposite predicament to Apple. It has spent the bulk of time over the past couple of months below its 50-day MA.However, last week it was able to push above its 50-day MA, a feat last achieved in June/July. There is a resistance around $62.50 which will add supply should the stock be able to build an advance from its current price of $54.27. The 200-day MA at $64.29 and falling, will soon be contributing supply of its own.

In third spot is Cnooc Ltd (CEO). Since its last feature in October the stock was able to make a brief pop above channel resistance before falling back inside. The stock has recently seen its 50-day MA tick higher in line with an improving bullish trend. At $195 the stock is again placing heavy pressure on channel resistance, but if it can clear $202 it will create a head-and-shoulder reversal which will mean anyone who bought this stock from August through to today will be holding a profitable position. The next area to break will be its 200-day MA which currently sits at $217.18, but that is another day's problem.

Zignals Chart Image

In fourth spot Barrick Gold (ABX). Like last month it has done little to change its sideways path. At the moment it is pushing towards $55.50 resistance but there is little to get excited about here until either longstanding channel support around $43, or resistance at $55 is breached.

In fifth lies Baidu (BIDU). September saw the stock drop below channel support, while October saw the break confirmed as the rally stalled at former support turned resistance. However, a second challenge at resistance (plus nearby 50-day MA and a declining trendline) has suceeded and the early stages of a new rally are now in place. Critical to its success will be for $135 support to hold.

Zignals Chart Image

In sixth spot is Priceline (PCLN). While the stock has managed to regain both 50-day MA and 200-day MA support, it hasn't yet challenged larger resistance of the channel. Buying volume hasn't been particularly heavy which may yet hold it back for a break of $525.

Zignals Chart Image

In seventh spot is a new arrival HDFC bank. Like Barrick Gold (ABX) it's caught in a bit of a trading range, bound by $27.50 support and $36.50 resistance. It may yet turn into a sleeper hit, but for now this is more 'sleeper' than 'hit'.

Zignals Chart Image

In eighth spot is Yanzhou Coal (YZC). This stock is still recovering from the shock when it lost $37 support  in August and fell all the way to $18 by the start of October. There appears to be a supply zone around $33 but with the stock trading around $25 it's a long way from challenging this level. Of greater interest is the proximity of the 50-day MA at $24.70 which it will need to work as support as it looks to build the foundations of a new base.

Zignals Chart Image


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