Here are three names I looked at today for a potential startup hedge fund...
Dover Corporation – DOV seems to be back in the uptrend that began at the end of June. It spent the past week consolidating just above the $84 level. This level was resistance from mid-May through mid-June, and it has become support now. It will probably still be a support level even if the uptrend line is broken and it spends more time consolidating or trading sideways. A good place for a sell-stop would be just below this level, for instance around the $83.75 level. Longer-term, the $90 level would be a logical place to have a sell target because it is where the all-time highs were in 2014.
Pool Corporation – POOL has been trending lower since the middle of June. It rebounded off of the $116.25 level last week but it is still trending lower. This level is important because it was the top of the consolidation range in late February and early March, and was support in mid-April and mid-May. A potential stop-out for a short position would be just above the downtrend line because a break of it could possibly be indicative of a trend reversal. If lower levels around the $115 level break, there could be a meaningful sell-off to around the $107 level because these levels were gapped up through in February, so there will probably be little vested interest around those levels. That means that there may not be significant support or demand at them.
China Petroleum and Chemical Corporation – SNP has been very volatile over the past few weeks. In the short-term, there has been resistance around $80 and support around $77. However, these levels are not clearly defined. Longer-term, there will probably be support around the $75 level because it was resistance in December and support in March. There will probably resistance around the $84.50 level because it was the all-time high in April.