UFS DOUBLE TOP PATTERNUFS DOUBLE TOP PATTERN
BREAKDOWN: 47.96
TARGET: 37.43 (-23%)
NEGATIVE MANSFIELD.
NO CPM.
SECTOR REALLY WEAK:
XBJD
Paper
Dead Money, the Cycle is Vicious; Wait for the Recession (PT$60)Failed mergers, an industry where consolidation and change are struggling to bring shareholders value. There's a lot to be wanting to try and keep up with the current "value" market. However, International Paper will struggle fiercely to try and impress. Lowest fib level is what demonstrates the inability of the company to break out. We've now plunged under it and there is little reason to try and capitulate on the decreased momentum to raise awareness and emotion.
Let IP do what it will. Let it ride out with all the volatility in 2018. Wait for at least three catalysts this year to prop it up and let it stop bleeding in 2019 and find a decent entry point. After that, if the easy money is gone and we enter more volatility or the first strings of the recession orchestra, know that the paper and corrugated industry are eternal until we find a better medium to make a box and print. Not recession proof, but when everything is down and ALL companies still need packaging materials, your friends at IP can do little to look grand.
Gold Cross on Daily Candle USOilDaily candle on the USOil shows a gold cross, depending on the data of inventories on USA that will be publish tomorrow and the fundamentals on OPEP production limits, we might brake the down turn. We have to pay attention to the Overbought signals on the RSI as well. #papertrade
UFS second try?I posted this chart before and was stopped out on a failed breakout. UFS came down and tested prior support one more time before now trying to break out again. It would be good to have a little consolidation before a breakout for a better stop loss level. The monthly pivots come in right at prior support levels, so depending on momentum i would take R1 at around 48 as first target and then look for a move to the 50-52 area. Personally I will have to be careful not to enter early again, but there was definitely some volume coming in on the failed breakout. Also I would add that if we fail to break out again, a deeper pullback is more likely.
Happy trading!
