Technical Tactical Trading Ideas - June 22nd, 2017

Booz Allen Hamilton Corp – BAH found support around the $32 level after its recent selloff.  There is support around these levels because they were important resistance for almost two years.  They were resistance in January and again in December of 2015, and again in July and September of 2016.  If you believe that the fundamentals and future prospects of this company are good, this is probably a good time to buy it.

Oil - Oil is testing support around the $43 level but it is still in a downtrend.  There is support around this level because it was the low in September and November, and then again on May 5th when the low was $43.76.  All three times were followed by a significant rally so it may rally again.  The key to a successful long trade here is to wait until the downtrend line is broken. Too many investors try to catch the bottom, but the risk reward ratio is better if entry occurs once an uptrend has begun.

S&P SPDR Retail ETF - The XRTs are oversold and trading at levels that have been support in the past but they are still in a downtrend.  The last time that they traded around $38 was in early 2016 and the time before that was in February of 2014.  Each time was followed by a significant rally.  Again...the key to a successful long trade here is to wait until the downtrend line is broken. Too many investors try to catch the bottom, but the risk reward ratio is better if entry occurs once an uptrend has begun.

NASDAQ Biotech - The IBBs have gone parabolic after breaking resistance at the $300 level.  This level was clearly defined resistance last September, August, March, and again in May.  This level will probably become important support if there is some profit taking.  The IBBs are now overbought and there may be a low risk short trade here.  If tomorrows close is lower than today’s low it will probably mean that the trend has changed and that could signal a trade entry.

Russell 2000 Value - The IWNs have been trading in a range with resistance around the $122 level and support around $113.50 since December.  These are clearly defined level.  An obvious and potential low risk trade here is to go short if it looks like they are going to sell off of the $122 level again, and to go long if they rebound off of the $113.50 level again.  If these levels are broken, then the other side of the trade could be entered.  In other words, if $122 is broken to the upside be long, and if $113.50 is broken to the downside be short.