DD trade ideas
The triangle will be resolved in a few days$DD is arriving at the end of an important triangle delimited by its major resistance (in red) and its major support. The break of the resistance or the support will occur soon and will be follow by a strong bullish or strong bearish phase. RSI is for the moment more in favor of a break of the resistance followed by a bullish phase.
Simple Trading Techniques – Bullish Strategy
Go long the DD if it trades at 65.75 or higher. If triggered, place your stop at 63.72 and exit the position for a profit at 69.24 or at your own discretion. (Signals are valid until otherwise advised. Always invest wisely).
Learn the rules of a strategy at: www.udemy.com
DD, M, Short16 years after the head & shoulders top in May 1998, Du Pont's price hit the resistance on the downtrend channel making a distinctive LOWER HIGH.
Well supported and confirmed by MACD not making higher high.
I foresee that the next window of support is between 40 - 50 in time to come.
My opinion is on a short side, but must wait patiently as there is a possibility of price retesting the upper resistance again in very short term.
Follow-Up of Winning Long DuPont/Short SPY Pairs Trade As soon as DD turn up relative to SPY on the day highlighted it was the time to put on the trade. Even if you waited until it went over the 10-day average of the ratio, you would have gotten in with very good risk/reward. You would have had 1% drawdown on the first day's open, then as much as a 19% gain from there to today's high, or a 16% return to the last sale.
Had you just bought in on the day of publication, your maximum drawdown was 0.42% and your maximum upside was 19.79% for a worst/best ratio of over 40:1. Now that is a big trade.
You can see how easy it is to graph the ratio - just type in one symbol, then the "/" backslash and the next symbol, with no spaces. Ratios often tend to trend a bit better than outright positions, but there are no guarantees.
Wishing you many more returns.
Tim 2:59PM EST 10/6/2015
DuPont DD - Daily - Lagging S&P500 & quiet in deeply oversoldDu Pont (DD) is deeply oversold and out of favor, thanks to its heavy cyclical nature and chemical exposure.
I like how the volatility of DD shares have quieted down over the past few days here, which can signal that the sellers are done with their selling for the time being.
The way to put this trade on is to wait until the DD starts to outperform SPY on a given day and THEN put the trade on. It's a simple rule to follow when putting on PAIRS trades.
Remember the old saying: Buy SHEEP, Sell DEER.
(Translates to Buy Cheap, Sell Dear)
"Dear" means when everyone loves something.
Cheers.
Tim
4:06PM EST 9/15/2015
DOW JONES OVERVIEW: DUPONT BETWEEN MACRO MEANS, SHORT TERM RISKDu Pont trades currently within macro uncertainty - between 10-year (now at 46) and 5-year (now at 54) moving averages. Thus Du Pont has no trend long term basis at the moment.
On short term basis, however, price is trading below 1st standard deviations from 1-year (now at 59) an quarterly (now at 51) means, thus showing a clear risk to more downside, unless price trades back above 59.
DD - 3rd Leg in a 3 Drives Bull channel; finding supportThis looks like it will end up being a nice 3 drives bull channel, and we are near the channel support, and will be looking for a nice bull trend bar or a high 1 pullback entry bar to buy.
I was also looking at the possibility of a small trading range (between points B and C). That is also setting up support and will likely have a successful bull breakout.
There seems to be much more buying pressure since August began, with many of the bars being strong bull trend bars closing at the highs. More recently on the daily, bear bars have accounted for less than 40% of the bars. The bull bars have also been generally stronger.
I would expect an AB=CD for the final leg of a three drives, as it also tops out perfectly at channel resistance.
The price is also finding support above the trendline that goes from upper left to lower right and ends at point C.
More sideways action wouldn't suprise me, especially an inside bar tomorrow. That would put it in breakout mode. This will take the price to the trendline while staying above 65.90 support.
Buy on a strong bull trend bar or a high 1 pullback entry bar. Less aggressive traders could buy above clearance of the trading range resistance (66.40). Failure unlikely given buying pressure.
50% with confluenceichimoku cloud update
On the daily chart of Du Pont or DD, there had been a Strong tk cross over 5/28/14. However price did not break the high of 68.82 (4/4/14) until on 5-30-14 is when price closed above 4-4-14's high. Since the 30th of may, price has slowly risen and is suddenly starting to retrace.
There is strong confluence that the market may do a fib bounce off of the 50% retracement.
First, the kinjun sen is lined uo with a 50% fib ( the green dotted line on the chart). which is around the 68.02 area. The 50% fib is at 68.01.
Next if you were to place the ichimoku cloud on a weekly chart the tenkan sen is at 67.89 which is a support level on the weekly chart.
Look for a key bounce around the 68.00 range on dd
Understanding A Great Trade Setup: Dupont (NYSE:DD) When finding a great swing trade, one must look at multiple factors. I hope to reveal my mindset fully, helping the average investor understand how I reached my decision to short Dupont (NYSE:DD). I believe a short on this stock an extremely high success rate, bordering on 90% over the next month. The downside target is $64.75, then $59.95.
1. The chart is extended. In the last month DD has jumped over 10% and currency is trading at highs not seen since the year 2000.
2. There is a key gap fill in this range from 2000 that the stock has currently filled.
3. Connect the recent highs from May 31st, 2013. They connect perfectly and everytime the stock has touched this level, it has pulled back.
4. There is a time count on the daily chart extending into the doji forming today. This should be a short term pivot top.
5. The stock has extended itself to the max move above the 200 moving average. Note how throughout history, the stock has never been much more extended from its 200 moving average prior to pulling back.
These reasons create a very solid base for a short trade on Dupont (DD). The downside should begin shortly and last at least a month or two.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
