Divergence Watchlist – 11/13/2017

I hope you all had a great weekend and didn’t spend too much of your profits on Singles Day.

11/11/17 – Alibaba’s (BABA) “Single’s Day” generated $25.3 billion of sales in 24 hours.  Think about that for a second.

We are going to be taking a look at a few familiar stocks as well as a few new ones.  Even though we aren’t going to be covering most of them, keep the China stocks on your mind: BABA, BIDU, JD, NTES, WB, CHA, LFC, PTR

Things have been working out really well here overall.  In October, the watchlist had a 75% win rate and the winners gained an average of 8.08%.  This month has been no exception as out list has outperformed the market.  I am continuing to keep track and will be making a tracking feature for the site in the near future.

Lastly, I am throwing in a few penny stocks to mix things up.  Be cautious, as penny’s have huge swings and are not for the feint of heart.  If you want to get in, I would recommend a small position size and place a tight stop.  Use the suggestions as a guide and do what’s comfortable.

That being said, I am excited to continue our success so let’s not delay.

Divergence Watchlist 11/13/2017: MOMO, AAOI, MNKD, AKCA, IMMU, NFLX

Momo (MOMO) has stochastic divergence at the breakout point of a falling wedge. This is a textbook divergence. Earnings are scheduled for 11/28 so we want to be out of the trade by then.
Buy: 29.05
Target: 30.31 – 32.29 (4.34% – 11.15%)
Stop: 28.30
AAOI 111217
Applied Optoelectronics (AAOI) has stochastic divergence at the breakout point of a falling wedge. 3 days late on this, but there is more upside. The stochastic is at 63.6 so we still have some upside before completing the rotation and ending the signal. Combined with the falling wedge pattern, I expect a move up to the 200ema (red).
Buy: 46.48
Target: 49.50 – 52.52 (6.50% – 13.00%)
MNKD 111217
MannKind (MNKD) has a double bottom stochastic divergence. If you get in on the way up and use a tight stop this could work out nicely. If things get going, they will move quick.
Buy: 3.50
Target: 3.76 – 4.37 (7.43% – 24.86%)
Stop: 3.30 (-5.71%)
AKCA 111117
Akcea Therapeutics (AKCA) has a running stochastic divergence on channel line support. Mentioned this one last week in the list and it finished the week strong. It looks like there is more upside to come, but I consider it a higher risk since it is a new stock ( IPO in July).
Buy: 19.50
Target: 20.93 – 22.70 (7.33% – 16.41%)
IMMU 111217
Immunomedics (IMMU) The stochastic coiled and is beginning to move the stock to the top of the channel. Look for a break above Friday’s highs.
NFLX 110817
Netflix (NFLX) I posted this one to StockTwits & TradingView at the end of last week. We’ll call it a bold prediction. BTFD is the likely play, but it is a rising wedge so we will see what happens.
Short: 190.19
Target: 176.55

Looking Back…

BB – Coiled up, daily divergence. Hourly divergence. 20, 50, 200 ema converging. I like it, be patient for the breakout

SGMO – Hit the target and looks to have more upside

ANDX – Hit the target and looks to have more upside

Check out last week’s Divergence Watchlist.

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Trading involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. Opinions, market data, and recommendations are subject to change at any time. It is important to do your own research and analysis before entering a trade. Any trade you make is at your own risk.