Sunday, November 12, 2006

Watch List: Bullish Engulfing Candles

I was looking at's scan for bullish engulfing candles. Some interesting possibilities below.

Bullish engulfing candles:
  • CEGE - On Nov 10 with very strong volume at the bottom of a downward move. MACD and Sto are low and curling up. Parabolic SAR giving buy signal.
  • EGP - On Nov 8 & 10. I suppose the Nov 10 candle confirms the Nov 8 candle. There are also dojis and an inverted hammer on the preceding days. Sto is giving buy signal. MACD is curling up. But, ADX made a lower high during the last price high.
  • CG - On Nov 8, candle closed at CG's then all-time high and closed above the upper Bollinger band. ADX rising with +DI making a new high.
  • CHKP - On Nov 10, after a down candle that retested a new support level from a consolidation breakout. It closed outside the upper Bollinger band. ADX line is rising again, and MACD histogram is giving buy signal.
  • GVA - On Nov 10 and 8. MACD and Sto giving buy signals. However, volume was relatively weak, and ADX is not confirming the trend. If enter, put stop just below the rising trendline.
  • IPXL - On Nov 10 with very strong volume; highest close since Jun 12. Highest volume day ever for IPXL since going public in Aug 2005. +DI above -DI with ADX rising and already above 30.
  • TMO - On Nov 10, candle fully engulfed the trading range of both Nov 9 and 8 on strong volume, with a breakout from a short-term consolidation zone. The Nov 10 close is TMO's all-time high, and it was also above the upper Bollinger band. MACD giving buy signal, and Sto turned up. ADX is still rising with +DI far above -DI.
  • VC - Nov 10, in the middle of an upward move. Nov 8 was a fairly strong move, and +DI crossed above -DI on that day. MACD and Sto gave their buy signals on Nov 7. Could take this as an aggressive trade using ADX and +/-DI indicators.
  • VMSI - Nov 10 candle engulfed Nov 9 and 8 with very high volume. The $42 level is now serving as support, after it had been resistance for almost 2 months. +DI crossed above -DI on Nov 7 on the gap up.
  • VRGY - Nov 6-10, two bullish engulfing candles with strong volume. $15 is firm support. If enter, set stop just below $15. MACD and Sto are low and curling up.
Bearish engulfing candles:
  • NIHD - Nov 10. But, MACD and Sto are already low, and ADX and +/-DI haven't confirmed the downtrend yet. So watch for a couple more days before deciding.
  • ZOLT - Nov 10 completely engulfs Nov 9 and engulfs body of Nov 8. This is also a retest of the $23.75-$24 resistance level, which had been the support level of a consolidation zone from Sep-Oct. This appears to confirm the downward breakout from consolidation. -DI is already above +DI. If moves down, expect resistance at $22, $20, and $18. Set set at $23.65.


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