SYS Research – Weekend Report – Friday, September 1, 2023

Notice: The weekend report is provided for informational purposes only and is not intended as a stock-picking service. The charts and information provided are intended to aid research and analysis and should only be used as indicators. They should not be considered as a direct trigger to buy or sell any security. The creator assumes no responsibility for any actions readers take and strongly advises each individual to fully understand the risks and potential consequences before making any investment decisions. Please note that the charts shared are not intended as signals to buy or sell but as a tool to add to your watchlist and analyze according to your trading ability. Remember that not all charts will result in buy or sell actions at any time.

Just a friendly reminder: We update the sector chartists every weekend. We highly recommend that you take some time to browse and create your watchlist. Please pay close attention to the Daily Setups and Workspace scan results for potential future additions to stay ahead of the game.

If you’re facing challenges understanding the Daily Setups or need help crafting a trading strategy, don’t hesitate to ask for assistance. You can contact me via email at info@setyourstop.com or reach me through the Workspace. Let’s schedule a Zoom meeting to address your specific requirements and provide you with the guidance you need.

SYS Daily Report – Weekend Edition

As many of you know, we’ve recently faced a challenging turn of events with our beloved leader, Greg, who had to step down due to health reasons. His dedication and vision have left an indelible mark on our company. As I step into this new role, I am deeply committed to upholding his legacy and ensuring that our clients continue to receive the high-quality research and service you’ve come to expect.

I want to begin this weekend’s report by sharing a heartfelt message I recently sent to our valued subscribers, expressing my gratitude for your unwavering support. But before I do, I’ve been reflecting a lot on Greg lately. His dedication and passion for this business are truly remarkable. It reminds me of a quote I came across as a wrestling fan, one that seems exceptionally fitting given Greg’s roots in Calgary, the same city as the legendary wrestler Bret ‘The Hitman’ Hart. ‘He’s the best there is, the best there ever was, and the best there ever will be.’ These words resonate strongly with me as I think about all that Greg has achieved. I eagerly look forward to the day when he conquers this challenge, and we can again hear his insightful voice guiding us through the market.

A Heartfelt Thank You

Dear Greg,

I hope this message finds you in good health and spirits. First and foremost, I want to extend my deepest gratitude for the unwavering support you’ve provided me throughout our journey together. Your guidance, mentorship, and friendship have played an instrumental role in shaping not only my professional path but also my life as a whole.

As many of you are aware, Greg has had to make the difficult decision to step away from Osprey Strategic due to health reasons. This moment marks a significant transition for all of us who have had the privilege of working with Greg and experiencing the remarkable dedication poured into this business.

I am humbled to announce that I will be taking the reins and moving my work over to SetYourStop.com, continuing the legacy Greg has built. This is not a decision I take lightly, and I am acutely aware of the responsibility that comes with it. While there will undoubtedly be changes as I embark on this new journey, I am committed to preserving the values and standards that have been the hallmark of Osprey Strategic.

To all of Greg’s valued clients and partners, I want to assure you that your trust has not been misplaced. I am dedicated to providing the same level of excellence and service that you have come to expect from Osprey Strategic. Although Greg may no longer be at the helm, his spirit will continue to guide us as we move forward.

Before delving into the details of what’s to come, I want to take a moment to express my deepest gratitude to Greg for being the driving force behind my journey to this point. Your legacy will forever be etched into the foundation of my work at SetYourStop. I would also like to extend my warmest wishes on behalf of everyone for a speedy recovery. Your health and well-being are paramount, and we eagerly anticipate the day we can celebrate your return. And to all of you, I am honored to have the opportunity to continue serving you and embarking on this new chapter together.

As we move into this new phase, I am thrilled to announce a dynamic shift in how we provide value to our subscribers. Starting this weekend, SetYourStop.com will be your daily destination for trading insights, knowledge, and opportunities. Our mission is to empower you with the tools and information to make informed trading decisions and achieve your financial goals.

Here’s a glimpse of what you can expect from the new and improved SetYourStop.com subscription:

  • Daily Reports: Receive comprehensive market summaries covering the US and Canada, delivered to your inbox five days a week. Stay informed about market trends, potential opportunities, and crucial insights.
  • Expert Setups: Access my handpicked daily setups designed to help you navigate the markets with confidence. These setups will cover a range of assets, ensuring you never miss an opportunity.
  • Top Scan Results: Receive downloadable PDFs featuring the top scan results, giving you an edge in identifying emerging trends and breakout candidates.
  • Sector Watchlists: Every weekend, access curated watchlists of my favorite charts, presented in convenient PDF format. Stay ahead of sector rotations and industry movements.
  • Workspace Access: Gain exclusive access to our workspace, where you can explore charts, conduct technical analysis, and collaborate with fellow traders.
  • Personalized Coaching: Enjoy 1-on-1 coaching sessions to address your unique trading needs and goals, accelerating your growth as a trader.
  • Educational Articles: Discover educational articles throughout the website to enhance your trading knowledge and skills.

These resources will be available to you for a reasonable price of $299.99 Canadian per year or just $29.99 monthly. That’s less than a dollar per day for a wealth of information and opportunities that could potentially transform your trading outcomes.

Are you interested in joining? – Subscribe today by following this link: CLICK HERE

While bittersweet, I am genuinely excited about the journey ahead and the opportunity to serve as your trading partner. At SetYourStop.com, we remain steadfastly committed to your success, and we are here to support you every step of the way.

For those of you who have been with us from the beginning, thank you for your continued trust and loyalty. And for those joining us for the first time, welcome to the SetYourStop family – together, we’ll chart a course to success.

Feel free to reach out if you have any questions or want more information. I am here to assist you.

Here’s to a future filled with profitable trades and prosperous opportunities!

With heartfelt appreciation,

Dwight

The Weekend Report

Now, as we delve into this weekend’s market analysis, let’s explore the key trends and opportunities that await us. Before we begin, I’ve been brainstorming with members, and I’d like to propose a ‘Weekend Round-up’ conference call recorded for those who can’t attend. This call would be the equivalent of our weekly video but will include an interactive component, allowing members to ask questions. Your feedback on this idea is greatly appreciated, as my goal is to make SetYourStop more about the team than myself.

Market Commentary

Summary: Energy stocks claimed the spotlight, firmly positioning themselves as market leaders. Simultaneously, growth stocks staged a comeback while our uranium theme maintained impressive momentum. The week’s climax arrived with Friday’s monthly jobs report, underscoring the effectiveness of monetary tightening in combating inflation.

Equities: The week’s end on Friday witnessed an unexpected twist as smaller-cap equities took the spotlight. In this unfolding narrative, the Russell 2000, championing the cause of small-cap stocks, outperformed the Dow Jones Industrial Average, eking out a modest 0.3% gain, and the S&P 500, which managed a slight uptick of just under 0.2%. The Nasdaq, in a departure from its subdued performance the previous year, embarked on an upward trajectory at the start of the day, only to conclude with a marginal loss of a mere 3 points.

However, this dip didn’t overshadow the Nasdaq’s remarkable weekly performance, boasting a 3.67% gain, its most robust showing since late March when it soared by 3.4%. The Nasdaq confidently closed above its 50-day moving average, marking its first triumph in four weeks. In this theater of finance, the broader market indices displayed strength, with the S&P 500 surging 2.5% for the week and the Dow Jones contributing a respectable 1.4% increase to the narrative.

For the S&P 500, the week’s final act unfolded on a positive note, buoyed by a surge in unemployment figures. These figures cemented expectations of a forthcoming pause in interest rate hikes scheduled for later this month. Onlookers closely monitored advancing issues that outnumbered their declining counterparts, resulting in a 2.1-to-1 ratio. The index marked 28 new highs and 20 new lows, while the Nasdaq made an impressive record of 84 new highs alongside 90 new lows.

Intriguingly, the spotlight fell on Tesla Inc., emerging as the most traded stock within the S&P 500, with a staggering $32.6 billion worth of shares changing hands during the session. However, the shares saw a 5% decline following the EV maker’s decision to reduce prices on its Model S and Model X vehicles in the U.S.

Trading Landscape: As the week drew to a close, trading volume exhibited a noticeable decrease on both primary exchanges, setting the stage for the impending Labor Day Weekend. The retreat from Friday’s intraday high did not signal any significant institutional selling pressure, as the lighter trading activity suggested. The Nasdaq’s rare stalling session on Thursday hinted at potential profit-taking maneuvers by fund managers, resulting in a noteworthy distribution day.

Currencies: The dollar index surged by 0.58% to 104.23, overcoming earlier setbacks linked to weakening economic data. It managed a slight 0.08% weekly gain. Conversely, the euro declined by 0.59% to $1.0779, reflecting a 0.13% weekly dip against the U.S. dollar. Meanwhile, the greenback made a notable recovery against the Japanese yen, rising from its recent low of 144.44 (the lowest since August 11). However, it concluded the week with a 0.12% dip, having retreated from a 10-month high of 147.375 earlier in the week.

Bonds: In Treasury yields, changes were evident. The 2-year yield nudged up slightly to 4.866% from 4.857% on Thursday but dropped by 18.8 basis points during the week. The 10-year yield showed more significant fluctuations, rising to 4.173% from 4.090% on Thursday, ending a four-day slide, although it still decreased by 6.6 basis points for the week. Similarly, the 30-year yield increased to 4.285% from 4.203% late Thursday, with a minimal drop of less than 1 basis point over the week. Looking ahead, market sentiment indicates a 93% probability that the Federal Reserve will maintain current interest rates at its upcoming September meeting, with only a 36% chance of a rate hike in November, as suggested by the CME Group’s FedWatch Tool.

Commodities: As the week wrapped up, the resource markets painted a positive picture. Oil prices soared on Friday, reaching their highest point in over six months, breaking a two-week losing streak as it made a significant jump of 5.72%, closing the week at $85.55, while natural gas saw a robust 4.06% increase, reaching $2.77. Among precious metals, gold bullion stood out with a notable gain of 1.40%, reaching $1,967, while silver experienced a 1.35% increase, landing at $24.56. Copper, on the other hand, recorded a robust 2+% increase, reaching $3.91 per pound before closing at $3.85. Uranium closed at $60.80, extending its 9-month rally by $12 and reaching an 11-year high. Lumber faced a 2.52% decrease, reaching $503. In summary, the CRB Commodities Index showcased an overall gain of 2.21%, concluding at 284.36.

Conclusion: This past week, our sector themes enjoyed a robust upturn, primarily focusing on energy, uranium, and growth stocks featured in our daily reports and the weekly newsletter, which I published on July 30th for Greg. Our outlook remains cautiously optimistic, contingent upon the indexes maintaining their position above their moving averages.

My strategy prioritizes identifying the best setups that allow us to enter the market amidst distractions and market noise. This approach has consistently proven effective, as the most promising charts and sector theme setups tend to emerge when others are preoccupied with predicting index movements. By recognizing these opportunities, we position ourselves ahead of the curve, enabling us to participate in market surges rather than chasing gaps. Our system trailing stop mechanism acts as a safeguard, ensuring we exit the market if it begins to falter. This prevents us from being sidelined and overwhelmed by the noise and predictions of others.

This week serves as a perfect illustration of our approach’s success. While many pundits were focused on predicting the Fed’s actions and index movements, many of our selected setups outperformed the market by a significant margin.

S&P 500 – Weekly Chart

The S&P 500 currently displays a bull flag continuation pattern, with a significant horizontal resistance line as a barrier. Notably, there’s a substantial volume by price bar on the left side of the chart, signifying significant accumulation and distribution in this chart area.

A breakout above this horizontal resistance line would be exceptionally bullish, indicating the continuation of the uptrend and the potential for prices to reach new all-time highs. Conversely, prices must maintain their position above the 10-week moving average (which also aligns with the 50-day moving average on the daily chart). Historically, these moving averages have consistently served as a reliable trendline and risk management tool, as evidenced in past trends.

This setup effectively creates a binary event, removing emotional responses influenced by external factors. It’s a critical point to monitor for a more precise assessment of market direction. A breakout above the horizontal resistance line signals a green light, while a breakdown below the 10-week moving average yields a red light. Currently, the market is positioned to allow our best setups to continue working.

Nasdaq – Weekly Chart

The NASDAQ’s setup mirrors that of the S&P 500, following the same sequence of expected outcomes.

Russell 2000 (ETF) – Weekly Chart

This week, the Russell displayed encouraging price action by outperforming the S&P and the NASDAQ, marking a significant development. As I highlighted in the July 30 newsletter, the Russell 2000 is positioned on the right side of a notable bottoming base. Currently, the price action is forming a bull flag continuation pattern, similar to a handle on the right side of a cup base. Regardless of the description, this price action is consolidating firmly within a substantial bottoming base pattern, with the horizontal resistance line serving as a trigger. It’s crucial to watch for signs of upside momentum, as a breakout from this pattern would be highly bullish, signaling the start of a new uptrend. Conversely, a breakdown below the cup bottom would invalidate the bullish scenario.

TSX – Weekly Chart

The TSX is currently trading within the apex or coil of a multi-year consolidation/continuation pattern. Simultaneously, the PPO (momentum indicator) is attempting to curl higher from the zero line. Notably, large volume by price bars indicates significant accumulation throughout this pattern. The setup appears exceptionally bullish, particularly given the rising price of oil and the bullish setup in the CRB index. It’s essential to keep a close eye on a potential breakout above the horizontal resistance line, as it would signal the commencement of a new uptrend. Conversely, a breakdown below the lower trendline of the pattern would invalidate the bullish scenario.

US Dollar – Weekly Chart

One concern for our bullish scenario in stocks and commodities is the current position of the US dollar. The US dollar is presently pushing above the upper trendline of a bottoming pattern, with price action trading into a major horizontal resistance/trigger line. Meanwhile, the weekly PPO momentum indicator positions itself below the zero line. A breakout above this resistance/trigger line would signal the continuation of the uptrend in the US dollar. However, as indicated in the second chart I posted below, this could have a bearish impact on equities, oil prices, and commodities. These assets often exhibit an inverse correlation with the US dollar, which tends to be a headwind during such times. The US dollar appears to be positioned at a spot on the chart where we must remain vigilant.

Bond Yields

This hasn’t occurred within the U.S. Treasury market for 250 years, but now it looms on the horizon. In 2023, the 10-year Treasury bond is on the verge of an unprecedented third consecutive year of losses. This week, Treasury yields exhibited volatility, inching upward. The 2-year Treasury rate reached 4.866%, while the 10-year rate climbed to 4.173%. Notably, the 30-year Treasury yield surged to 4.285%, marking an 8.2 basis point increase from Thursday, though it experienced a slight decline over the week. Loretta Mester, President of the Cleveland Fed, emphasized persistent inflationary pressures in her comments, casting a shadow over positive job data suggesting a cooling labor market. The unemployment rate inched up to 3.8%, and job gains from prior months were revised downward. Despite these challenges, there was a glimmer of hope as ISM’s manufacturing PMI saw an increase in August. Analysts, including Solita Marcelli from UBS Global Wealth Management, are anticipating a decelerating economy and the potential conclusion of the Fed’s rate hike cycle, possibly resulting in lower U.S. Treasury yields by year-end. The future remains uncertain as the current trend will persist until the moment it doesn’t.

What Has Worked for the Last Week

Technology, materials, and energy sectors have been the standout performers this week, in sync with the daily chart setups we’ve been highlighting. It’s essential to stay vigilant in observing these daily setups and our watchlist, as they consistently hold potential opportunities and fresh ideas.

Price of Oil Continues To Accelerate Higher – Weekly Chart

The setup for oil is appearing extremely bullish. Following a push higher from the falling wedge continuation pattern, we now observe a breakout from a bull flag formation as price action trades into the underside of resistance. It’s important to take note of the large volume by price bars, which hints at significant accumulation throughout the pattern. Furthermore, the PPO momentum indicator has crossed above the zero line, signifying a shift towards positive momentum. A breakout above the resistance line would complete the pattern and indicate a continuation of the uptrend.

CRB Index Weekly – Chart

The CRB index continues to demonstrate strong upside momentum as price action breaks out from a bull flag continuation pattern and above horizontal resistance. This further reinforces our bullish outlook on commodities. It’s noteworthy the striking similarity in the shape of the CRB index chart to that of crude oil. Both are breaking out from significant falling wedge continuation patterns, with the PPO momentum indicator indicating a potential breakout above zero. Also, please take note of relative strength versus the S&P 500 on the brink of breaking above its downtrend line, signaling potential outperformance. This is important because it’s every fund manager’s goal to outperform the benchmark. This breakout in relative strength could continue to attract inflows as fund managers aim to please their clients while pursuing performance. These bullish indications provide exciting prospects for investors. Stay tuned for more updates as I post setups that align with this theme in the Daily Setups, informing you about potential opportunities in the commodities market.

Copper – Weekly Chart

As highlighted in the July 30th newsletter, the price of copper remains within a significant technical pattern known as a symmetrical triangle chart pattern. This pattern typically emerges during consolidation, characterized by two converging trendlines – one sloping upwards and the other downwards – forming a triangle shape on the chart. The term “symmetrical” is apt because both trendlines share a similar degree of inclination. As this pattern matures, the price action appears to coil tighter, earning it the moniker “coil” pattern.

Symmetrical triangles are recognized as continuation patterns, implying that the asset’s price will likely persist in the prevailing trend before the pattern’s formation. In this instance, with the price action indicating a bullish setup, a breakout from the symmetrical triangle could signify the continuation of copper’s uptrend. Furthermore, with the weekly PPO momentum indicator signaling a bullish cross, the potential for a breakout becomes even more promising. Investors and traders should maintain close vigilance over copper’s price action as it approaches the apex of this symmetrical triangle, as it may lead to substantial price movements in the near future. Conversely, a breakdown below the lower trendline of the pattern would invalidate the bullish scenario.

COPX – Weekly Chart

The weekly COPX ETF chart, representing copper miners, echoes the bullish sentiment in the copper market. It shows a substantial cup-basing pattern below a significant resistance line, indicating a strong potential for an uptrend continuation. The weekly PPO momentum indicator is favorably positioned near the zero line, enhancing the bullish outlook.

A copper price breakout would likely drive the COPX ETF to new highs, signaling a robust copper mining sector uptrend. Keep a close eye on copper, the COPX ETF, and names like SCCO and FCX, which displayed strong bullish setups this week. Don’t forget to monitor our Copper Watchlist and consider adding fitting names to your watchlist.

Gold – Weekly Chart

As the price of gold concludes the week on a positive note, we find ourselves in a highly bullish setup with price action consolidating within a substantial multi-year basing pattern. Currently, the price is set up in a bullish pennant formation, positioned just below the upper trendline of the larger pattern and potential new all-time highs. A breakout from this large setup carries significant bullish implications. Vigilance is essential to spot any signs of upward momentum that may signal an impending breakout.

Additionally, I’ll continue to share potential setups in the Daily Setups section, providing further insights and analysis as the chart’s price action unfolds. I look forward to exploring these opportunities together in the gold market. Conversely, a breakdown below the lower trendline of the pennant would invalidate the bullish scenario.

Silver – Weekly Chart

The silver weekly chart depicts a substantial consolidation within an extensive basing pattern. Currently, price action is set up below horizontal resistance and the upper trendline of this pattern, forming an apex akin to a tightly wound coil. Given the historical correlation between silver and gold, it’s essential to monitor both precious metals closely. While there may not be significant developments now, if gold initiates a breakout, it’s reasonable to expect silver to follow suit. Therefore, maintaining a vigilant watch on both gold and silver is crucial, ensuring that you’re well-prepared to identify potential trading opportunities and capitalize on any breakouts as they appear in the daily setups.

 

Sector Spotlight: Weekend Watchlist for Momentum Setups

Welcome to our first-ever sector-themed watchlists. Today’s featured setups are drawn from these watchlists, offering stocks showing momentum potential and top fundamentals within chart patterns. We invite you to explore these lists for additional opportunities that align with your investment goals.

Continuing the Uranium Themed Journey: A Follow-Up Analysis

In our July 30 newsletter, we discussed the promising opportunities within the uranium sector. Throughout August, it has certainly lived up to expectations. Specifically, the price of the Sprott Physical Uranium Trust, a core component of our investment strategy focused on momentum, has surged impressively. Since that newsletter, the trust in physical uranium has climbed by an impressive 19%, following a steady upward trajectory. This remarkable performance aligns perfectly with our strategy, which includes the judicious use of trailing stops to capture this price action.

This is the chart and analysis I used in the July 30th newsletter:

Uranium is another area that demands close attention as commodities gain traction. The Sprott Physical Uranium Trust has been steadily approaching the apex of a substantial consolidation/continuation pattern, also known as a coiled pattern, as mentioned earlier. Keep a vigilant watch for any indications of a potential breakout. As emphasized previously, a breakout from this technical chart formation would be exceedingly bullish, signaling a continuation of the uptrend. It is crucial to observe the bullish volume as the pattern develops. The US ticker for this ETF is SRUUF.

Follow-up chart:

If you’ve been following our daily setups, you might have observed the trends in uranium charts. Many stocks within the sector currently display chart patterns suggesting the beginning of an uptrend as they break free from significant consolidation phases. These patterns are supported by a notably robust volume profile bolstered by the spot price of uranium reaching an 11-year high. Below, we showcase charts that have consistently held a spotlight in our daily setups. We invite you to explore our watchlist to view all the charts we’ve been following.

To access our uranium-themed watchlist, CLICK HERE.

URA – Global X Uranium ETF

The Global X Uranium ETF shows signs of breaking out from a substantial consolidation phase that formed into an apex or the coil of a continuation triangle. Take note of the volume profile throughout the pattern, accompanied by the large volume-by-price bar, which suggests significant accumulation. As the old saying goes, ‘the bigger the base, the higher into space.’ With uranium recently reaching an 11-year high, this chart is just beginning to break out. Keep an eye out for the continuation of upside momentum while implementing a trailing stop-loss order adjusted for appropriate volatility. Please read this article describing different ways to choose a proper stop-loss order that fits your risk profile.

For more insights on choosing the right stop-loss strategy to fit your risk profile, CLICK HERE to read the full article.

URNM – Sprott Funds Uranium Mining ETF

Sprott Funds Uranium Mining ETF is currently in the early stages of breaking out from a substantial falling wedge continuation pattern, exhibiting similar volume characteristics as the URA chart mentioned earlier. The same analytical principles apply to this chart as they did to the previous one. The key distinction here is that this forms a falling wedge continuation pattern, whereas the previous chart featured a symmetrical triangle continuation pattern.

LEU – Centrus Energy Corp.

Centrus Energy is a chart that we’ve consistently featured in our daily setups, given its notable price action breakout from a substantial symmetrical triangle base. This breakout is complemented by an extremely bullish volume profile. Centrus Energy is a reputable supplier of nuclear fuel and services for the nuclear power industry.

NXE – NexGen Energy Ltd.

NexGen Energy is in the early stages of breaking out from a substantial basing pattern, accompanied by an extremely bullish volume profile.

UUUU – Energy Fuels Inc.

Energy Fuels is currently beginning to push above the upper trendline of a substantial basing pattern, taking the form of a continuation triangle. Take note of the consistent bullish volume throughout this pattern. Keep a close watch for potential upside momentum.

DNN – Denison Mines Corp.

Denison Mines is also in the early stages of breaking out from a substantial basing pattern, accompanied by a bullish volume profile.

CCJ – Cameco Corp.

Finally, Cameco, which we highlighted in the July 30th newsletter when the price was $33.97 and just starting to break out to new highs from its basing pattern. Keep an eye out for a continuation of upside momentum.

 

Energy Unleashed: A Focus on Investment Themes

The energy theme has been on our radar for quite some time, and this past week was no exception. With the price of crude oil poised to break out above a major resistance line, members in the workspace were celebrating as their energy charts accelerated higher. Giving them a reason to continue their celebration into the long weekend.

Please stay tuned and watch our daily setups, as we’ve consistently posted energy charts. Additionally, we invite you to explore our energy watchlist. I can’t include every bullish chart in my articles, and it often feels like a case of ‘pick your poison’ as many chart patterns complement each other.

We’ll begin this section by reviewing the two charts I highlighted in the July 30 newsletter, as they showed great potential, followed by new, fresh ideas. Feel free to go over the watchlist and identify charts that align with your own risk profile and investment strategy.

To explore our US energy-themed watchlist, CLICK HERE.

Earthstone Energy was one of the setups I highlighted in the July 30 newsletter, emphasizing its potential for upward momentum. In that newsletter, I mentioned my choice of this chart was due to its high fundamental rating within my universe of stocks.

I want to inform you that moving forward, all the charts I feature in my daily setups are carefully selected, with a primary focus on top fundamental rankings. This approach aligns with my strategy, which emphasizes that stock charts should have a strong fundamental foundation to support breakouts.

Institutional investors often gravitate toward top-ranked companies from a fundamental perspective, and my objective is to identify charts that not only display technical promise but also boast a robust fundamental backdrop. This combination often provides a compelling case for potential growth.

Earthstone Energy has surged by over 30% since our July newsletter.

This is the chart and analysis I used in the July 30th newsletter:

Earthstone Energy is a compelling energy setup that has been highlighted in the Daily Setups. This chart provides an educational tool showcasing the reasons for its appeal. Notably, it stands out as one of the top fundamentally rated names in the sector, bolstering its attractiveness. The price action is currently breaking out from the apex of a substantial basing pattern, a favorable sign in technical analysis. As the saying goes, “the bigger the base, the higher into space.” Additionally, the chart displays large volume by price bars, indicating significant accumulation throughout the pattern. Moreover, the 10 and 40-week moving averages, which also correspond to the 50 and 200-day moving averages on the daily chart, are exhibiting a golden cross, reinforcing the bullish sentiment. Other bullish indicators include an extremely positive volume profile and a PPO momentum indicator that has broken out above the zero line. Furthermore, relative strength versus the S&P 500 is breaking above a major downtrend line, signaling potential outperformance and a strong SCTR, which is accelerating back into the top-performing quartile. The setup is enhanced by the stock’s breakout from a tight pattern on the right side of the base or from an apex, which often leads to explosive potential due to the transition from periods of low to high volatility. As an investor, keeping a close eye on Earthstone Energy can present valuable opportunities for informed decision-making and potential gains.

Follow-up chart:

In the July 30 newsletter, I highlighted Canadian Natural Resources from the Canadian side, as its price action set up near the apex of a significant ascending triangle continuation pattern. Since that newsletter, Canadian Natural Resources has surged by an impressive 10%.

For an in-depth exploration of the ascending triangle continuation pattern and its implications, please read this article. CLICK HERE to learn more.

This is the chart and analysis I used in the July 30th newsletter:

On the Canadian side, Canadian Natural Resources exhibits similar promising qualities. The only difference with this setup is that the price action has consolidated to the apex of a significant ascending triangle continuation pattern. An ascending triangle is a bullish continuation pattern characterized by a horizontal resistance level and an upward sloping support level. This pattern is defined by a sequence of higher lows and a relatively flat or slightly rising top, creating a triangle shape on the price chart. The horizontal line represents the resistance level, while the upward sloping line represents the support level. As an investor, paying attention to Canadian Natural Resources and its formation of this bullish pattern could present potential opportunities for favorable market movements. Watch for upside momentum that could lead to a potential breakout.

Follow-up chart:

XLE – Energy Select Sector SPDR Fund

The Energy Select Sector SPDR Fund was featured in the setups on Thursday as price action positioned itself on the right side of a substantial base. The analysis suggested keeping a lookout for potential upside momentum that could drive the price to new 52-week highs. On Friday, price action broke out from that pattern. Keep an eye out for a continuation in upside momentum.

TDW – Tidewater, Inc.

Tidewater was also highlighted in the setups on Thursday as its price began to exhibit signs of upward movement from a continuation pennant pattern situated just below new highs. On Friday, price action continued to push higher from that pattern. Keep a close watch for the continuation of this upside momentum.

NOG – Northern Oil and Gas, Inc.

Northern Oil and Gas was featured in the setups on Wednesday as the stock set up in the form of a bull flag continuation pattern just below 52-week highs. The analysis suggested keeping a close watch for a potential breakout. On Friday, price action indeed broke out from that pattern.

XOM – Exxon Mobil Corp.

On Tuesday, Exxon Mobil was featured in the setups as price action consolidated within a significant bullish ascending triangle continuation pattern. The analysis suggested paying close attention to the potential for upward strength that could propel the price toward the upper trendline of the pattern, possibly leading to a breakout. On Friday, the price surged from that pattern, bringing it closer to the upper trendline.

I could continue highlighting more energy charts, as many complement each other. I encourage you to explore our watchlist for additional potential opportunities and to keep a close eye on our daily setups. Here are some notable tickers that stand out to me and meet the same criteria: BKR, COP, CVX, DINO, DVN, EOG, FANG, FTI, OIH, OII, OXY, PBF, PSX, PXD, SLB, VAL, VLO

 

Canadian Energy Watchlist: Top Opportunities Revealed

Much like the U.S. energy charts, I could go on indefinitely. Many of these charts complement one another. I encourage you to explore our watchlist for additional opportunities that align with your criteria. Additionally, I invite you to join our workspace, where our team has been remarkably active, pinpointing promising Canadian energy names. As I mentioned earlier, it was quite a celebration there on Friday.

To explore our Canadian energy-themed watchlist, CLICK HERE.

BTE.TO – Baytex Energy Corp.

Baytex Energy was featured as a setup highlight on Wednesday, positioned favorably within a bottoming base. The analysis suggested keeping a close watch for a potential breakout. On Friday, price action indeed broke out from that pattern. Now, keep an eye on the continuation of upside momentum, especially if the oil price can break out above its resistance line.

KEL.TO – Kelt Exploration Ltd.

Kelt Exploration was another setup highlighted on Wednesday, as its price action flagged just below horizontal resistance and new 52-week highs. The analysis suggested keeping a close watch for a potential breakout. On Friday, price action broke out from that pattern.

VET.TO – Vermilion Energy Inc.

Vermilion Energy was featured as a setup on Tuesday, positioned favorably on the right side of a substantial bottoming base. The analysis suggested keeping a watchful eye on the potential for a breakout. On Friday, price action indeed broke out from that pattern.

 

Copper: A Spotlight on the Watchlist

While we anticipate the copper price to unveil its directional breakout, we’ve diligently tracked compelling charts in both our daily setups and workspace. We encourage you to peruse our copper watchlist and delve into a selection of the charts we’ve been monitoring closely. It’s worth highlighting that, in many cases, the producers often lead the commodity’s price in momentum. Therefore, the setups in these names could signify a favorable outlook for copper.

To explore our copper watchlist, CLICK HERE.

SCCO – Southern Copper Corp.

Southern Copper is a chart recently featured in our daily setups as price action formed a bullish flag, retesting the base breakout. Currently, price action is attempting to break out from this pattern, with the PPO momentum indicator curling higher off the zero line. Keep a close watch for a potential continuation of upside momentum, especially as price action positions itself below new all-time highs.

FCX – Freeport-McMoRan, Inc.

Freeport-McMoRan is currently set up in a cup-with-handle type continuation pattern. Keep a close watch for a potential continuation of upside momentum, as it could drive the price back to the upper trendline of the pattern, potentially followed by a breakout.

TECK – Teck Resources Ltd.

Teck Resources is currently set up in a continuation wedge, with price action pushing up against a horizontal resistance line created by a major volume-by-price bar. A breakout above this level would be considered bullish and suggest a continuation of the uptrend.

 

Consumer Discretionary Gems: Exploring the Watchlist

Below are three ideas that we’ve been sharing in the daily setups. We invite you to explore the watchlist and curate your personalized watchlist to align with your investment criteria.

To explore our consumer discretionary-themed watchlist, CLICK HERE.

AMZN – Amazon.com, Inc.

Amazon is currently in the process of breaking out from a bull flag continuation pattern.

LI – Li Auto Inc.

Li Auto is currently forming a bull flag continuation pattern. Watch closely for a potential breakout.

MELI – MercadoLibre Inc.

MercadoLibre is a stock we’ve highlighted in the setups as price action consolidated near the right side of a cup base. Price action is now breaking out of that pattern. Watch for a continuation of upside momentum.

YETI – Yeti Holdings Inc.

Yeti is a chart we started posting on August 22nd when price action was at $46.71 and just starting to breakout from its bottoming pattern. Price is now up 8% since then as it accelerates higher from the setup. Watch for the potential continuation in upside momentum.

 

Exploring the Communications Sector: Communication Services Watchlist

To explore our communication services-themed watchlist, CLICK HERE.

GOOGL – Alphabet Inc.

Google is a chart that we’ve consistently featured in our daily setups. Its price action has demonstrated remarkable relative strength, refusing to break down even as the broader market experienced declines. Now, price action is breaking out from the pattern we’ve been highlighting. Keep a close watch for the continuation of upside momentum.

META – Meta Platforms, Inc.

Meta is currently setting up in the form of a bullish flag continuation pattern. Keep a watchful eye for a potential breakout.

NFLX – Netflix, Inc.

Netflix is currently setting up in the form of a bullish flag continuation pattern, or a continuation wedge. Keep a close watch for a potential breakout.

 

Banking on Opportunities: Financial Sector Watchlist

To explore our financial-themed watchlist, CLICK HERE.

XLF – Financial Select Sector SPDR Fund

The Financial Select Sector SPDR Fund ETF is setting up just below horizontal resistance and the upper trendline of a substantial consolidation/continuation pattern. Watch closely for a breakout, as it would suggest the potential continuation of the uptrend.

MA – Mastercard

Mastercard is a chart that we’ve been recently highlighting in our daily setups. Its price action was threatening to push to new all-time highs, and it has now broken out from that chart pattern. Keep a close watch for the continuation of upside momentum.

V – Visa Inc.

Visa is another chart we’ve recently featured in our daily setups. Like Mastercard, its price action was poised to set a new all-time high, and now it has broken out from that pattern. Keep a close watch for the continuation of upside momentum.

 

Industrial Sector: Uncovering the Watchlist

To explore our industrial-themed watchlist, CLICK HERE.

AIT – Applied Industrial Technologies Inc.

Applied Industrial Technologies is trending to a new all-time high from a giant basing pattern.

CXT – Crane NXT, Co.

Crane NXT is set up in the form of a bull flag continuation pattern below new highs. Watch for the potential of upside momentum.

TEX – Terex Corp.

Terex is attempting to break out from a continuation wedge located at the right side of a giant basing pattern.

 

Materials Sector: Exploring the Watchlist

To explore our materials-themed watchlist, CLICK HERE.

CMC – Commercial Metals Co.

Commercial Metals is currently set up on the right side of a substantial basing pattern, positioned just below new highs. Additionally, the PPO momentum indicator shows signs of curling higher off the zero line. Keep a close watch for a potential breakout.

KOP – Koppers Holdings Inc.

Koppers Holdings is attempting to break out to new 52-week highs from a giant consolidation/continuation pattern.

SHW – Sherwin Williams Co.

Sherwin Williams is currently in the process of breaking out from a bullish flag continuation pattern, positioned just below 52-week highs. Additionally, the PPO momentum indicator shows signs of curling higher off the zero line. Keep a close watch for a potential upside momentum.

 

Chips and Trends: Semiconductor Watchlist

To explore our semiconductor-themed watchlist, CLICK HERE.

AMAT – Applied Materials, Inc.

Applied Materials is attempting to trend higher from an area of consolidation, breaking free of any overhead resistance.

AMD – Advanced Micro Devices, Inc.

Advanced Micro Devices is consolidating as a continuation wedge or a bull flag continuation pattern. Watch for a potential breakout.

KLAC – KLA Corp.

KLA is attempting to trend higher to new highs from the apex of a continuation pattern.

 

Software Focus: Software Watchlist

To explore our software-themed watchlist, CLICK HERE.

CDNS – Cadence Design Systems, Inc.

CDNS is currently setting up just below new highs. Keep an eye out for a potential breakout.

CFLT – Confluent Inc.

Confluent is consolidating in the form of either a continuation wedge or a bull flag continuation pattern. Keep an eye on it for a potential breakout.

SPNS – Sapiens Intl Corp. N.V.

Sapiens is set up as a bull flag pattern just below the 52-week highs. Keep an eye out for potential upside momentum.

 

Charting Tech Trends: Technology Watchlist

To explore our technology-themed watchlist, CLICK HERE.

ANET – Arista Networks, Inc.

Arista Networks is a chart that we’ve been featuring in the daily setups, and its price action is currently starting to trend towards new highs.

ATKR – Atkore International Group Inc.

Atkore is set up on the right side of a giant basing pattern. Keep an eye out for the potential of upside momentum.

XLK – Technology Select Sector SPDR Fund

The Technology Select Sector SPDR Fund ETF is attempting to trend above horizontal resistance after breaking out from a continuation wedge. Watch for the potential of upside momentum.

 

US Watchlist Scanner Results

Click on the CandleGlance chart to view it in full size, and if you find a chart that fits your criteria or interests, you can easily save it to your watchlist for further analysis and tracking.

 

Canadian Scanner Results

Click on the CandleGlance chart to view it in full size, and if you find a chart that fits your criteria or interests, you can easily save it to your watchlist for further analysis and tracking.

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