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Sunday, February 26, 2006
Tuesday, February 26 2007

Charts that are At Resistance This Week - ANDE, EOG & LYO

I just want to alert you to the fact , that these charts are all approaching/ hitting heavy resistance. FYI This is not a buy or sell alert. I just want you to learn where resistance occurs on these charts. It would be extremely bullish for these stocks they all clear resistance very soon.

Andersons, Inc. -(ANDE) - Weekly Chart - Bullish Continuation Wedge Pattern/ Rounded Bottom - Ethanol-
Monday February 26 2007 - The weekly chart of ANDE illustrates that ANDE has broken out of a bullish continuation wedge pattern, which represents impulse wave 3 to wave 4. Since the breakout of the wedge in November, ANDE has traded in a lateral sideways consolidation rectangle pattern/ rounded bottom. You can see that heavy resistance has presented itself repeatedly at the top of the rectangle at $43.00. ANDE has now taken out resistance at $43.00. Finally! $47.00 will be the next area of resistance, and $43.00 will soon become the new support level. If you look at the moving averages you can see that they too have been consolidating along the rounded bottom. The Aroon indicator is now in a bullish 123 trend reversal. The RSI and PPO are showing bullish divergence and have bottomed and are curving upwards. The WM% is now bullish and trending at the +20 level. Stochastics have bottomed at the 50 line, are curving upwards, and showing bullish divergence. Volume needs to come in this week, to confirm the breakout above $43.00, and that volume is appearing right now at the time of this update!. ANDE is looking bullish this week. ANDE is an investor trade. Entry for ANDE was issued at $37.40 price target is $70.00 within the next 6 to 12 months. That would represent a gain of 33 points. ANDE is up 25% from our original entry point. (New subscribers please wait for new buy alerts to be issued. Please read the New Subscriber information : )

Andersons, Inc. -(ANDE) - Weekly Chart - Bullish Continuation Wedge Pattern with Ascending Triangle - I brought this chart up again in order to point out where previous resistance was marked on the chart. This was at $43.00.

December 22 2006 - The weekly chart of ANDE illustrates that ANDE is in a bullish falling wedge reversal pattern within a larger ascending triangle. As you can see it is just now going into a 123 bullish trend reversal on the Aroon indicator. If you look at the Aroon indicator, you can see the bullish cross occurs at 50, which is right in the middle. When the cross occurs at 50 this will create some whipsaw in the stock. The cross at 50 or so will cause a counter trend pullback to the uptrend line. You can see this occur on the chart. In addition, when the Aroon cross occurs at +70 to+90 or at -10 to-30 that is a very bullish cross. The pullback occurred on light volume which is also a bullish signal. The pattern remains bullish. Furthermore, the moving averages are converging and the indicators and oscillators are in a bullish trend reversal. Not much of a change from last week. Entry for ANDE was issued at $37.40 price target is $70.00 within the next 6 to 12 months. That would represent a gain of 33 points.

EOG Resources, Inc. - (EOG) - Weekly Chart- Bullish Symmetrical Triangle/Continuation Pattern - Energy
Monday February 19th Chart - EOG is a stock that I bench marked pretty much back at the January lows. I thought that if that bottom uptrend line held, then the current EOG chart is probably a carbon copy of the EOG chart shown below in white. The smaller white chart, illustrates that EOG is in a within 5 wave ABCDE of the larger ABC pattern of subwave of (3) and (4). That is what is occurring right now on this week's chart. This is a stock play where we are applying the wave structure and pattern to the trade, rather then the typical 123 bullish trend reversal on the Weekly.

The rationale behind using pattern and wave structure as the primary reason to analyze the current chart of EOG, is due to whipsaw action occurring in the indicators and oscillators. It is to such an extent that the latter can't be interpreted correctly at this point. It is for this reason that I combine pattern and wave structure with the indicators and oscillators in the 123 Trading Method. Sometimes the indicators and oscillators just don't work. If you were to follow the indicators and oscillators only, you'd be whipsawed in and out of the trade as well as buying high and selling low. The more this stocks coils within the symmetrical triangle and the more pent up the stock become, the stronger the breakout to the north will be. EOG is nudging up against the downtrend line this week. Let's hope the downtrend line gets taken out this week! EOG is currently close to our entry point./ flat. (New subscribers please wait for new buy alerts to be issued. Please read the New Subscriber information : )

EOG Resources, Inc. - (EOG) - Weekly Chart- Ascending Triangle Pattern - Energy Sector - Optionable
Thursday February 1st Chart - EOG presents itself as a value play with a P/E of 11.47. This is a macro play. EOG is in an ascending triangle pattern. Within that triangle pattern, you can see a smaller symmetrical triangle pattern. EOG has been contracting up and down within the triangle. It has held it's uptrend line and then bounced right off of it. If you look at the volume, you will see that heavy volume has come into support the dips to the uptrend line which is bullish action. The Aroon juts had a bullish cross and the PPO is beginning to show positive divergence, as is the WM% . The RSI and stochastics are still bearish. EOG is also a lower risk investor trade, meaning that it is meant to be held for 6+ months or until price target is reached at $95.00.

Lyondell Chemical Company - (LYO)- Monthly Chart- Rounded Bottom - Chemicals - Optionable
Monday, February 26th, 2007 - The old all time highs were placed at $33.44. LYO is now breaking through a decade worth of resistance, that goes all the way back to 1998! This attempt at clearing resistance is occurring on heavy volume! Please keep in mind that taking out this resistance may take a couple of times. However, once resistance is taken out there is no overhead resistance for LYO to battle. This is bullish. Furthermore, there is a lot more upside potential to LYO, because it is nowhere near overbought on the monthly chart. Looks, good. LYO is currently up 9% from entry point. (New subscribers please wait for new buy alerts to be issued.

Lyondell Chemical Company - (LYO)- Monthly Chart- Rounded Bottom - Chemicals - Optionable
February 20th The Monthly chart illustrates that LYO is in a rounded bottom pattern. However it is currently at resistance at all time highs $33.44, and price could stall here. However, it could also breakout and that would be a triple top breakout. As I pointed out on the weekend update of NCX,which is also in the same sector as LYO. The chemical sector is bullish by the way. I like to look at the monthly charts because I always want to see what the big picture is. The further out in time you go when looking at a chart the more clarity you get as to the trend, wave structure and pattern a stock is in. Now let us discuss wave structure. What I want to point out here, is that you can clearly see that LYO is 5th impulse wave move up. How was this determined? By being able to identify what the current wave number is, you can then determine what the overall wave structure is. Since we already know that wave 2 to wave 3 is the longest wave out of the five, which we can see clearly on the chart, and we also know that wave 3 to wave 4 contains a corrective wave in the form of a falling continuation wedge, and we know that wave 4 can never overlap wave 1. Consequently, like Sherlock Holmes, we can then deduct with logic, that LYO is now in a 5th impulse wave up move. Furthermore, you can see that all the waves in the chart conform to Elliot wave rules. The pattern then also confirms the wave structure. On top of that information, we also know that the PPO and RSI always match the wave structure and you can see that the RSI and PPO topped at wave 3 and bottomed at wave 4. The indicators and oscillators on the monthly chart have just had a bullish trend reversal that coincide with a continuation leg of impulse wave 5. We bought LYO at $30.40 last Monday, this was after the lows were placed and reconfirmed on the monthly chart. Please note that the indicators and oscillators are in a 123 bullish trend reversal, and the PPO shows that it is just starting to reverse to the upside. The buy alert for LYO was triggered at $30.40. It is a swing trade, meaning that it is meant to be held for 3 to 6 months or until price target is reached at 10 points higher at $40.00. This stock update only applies to old subscribers who bought when the buy trigger alert was issued.

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