Game Plan 4/30/2012

The new week is upon already! I hope everyone enjoyed their weekend! This week I will most likely not start my trading week until Wednesday. I have volunteer work that I will be doing Tuesday which will not make it possible for me to take a gap play Monday. On Wednesday all 3 of my day trades will be back as well. I am hoping to use those for bounce plays and have better success then I did last Thursday!

Hopefully the market will be more alive this week as it goes on. $SEFE may be back in play which we will touch on later. Last week also didn't have to many gap plays so this week I am hoping to see the opposite.

I am only going to talk about $SEFE in this blog due to what was stated above. I will do a more thorough blog on Tuesday about my plan for the week along with any gap play that I took.

Listed below are my thoughts and plans-

$SEFE:

This stock, based off of my analysis looks to be back in play. I am hoping to see a steady up trend on this stock through out the week. There should also be multiple opportunities to get in on dips, swing trades or simply just for a quick scalp.

Here is why I feel $SEFE is still in play based off of the daily chart.

If we look at the two lower lines we will notice support (green line) and resistance (lower red line). The support line is based off of previous support which we can see by the chart on how nicely those day lows match up. Since this is the case I will be looking for an entry tomorrow around 1.47-1.50, that's if we see that low tomorrow. If we do see a low around that range I will look at the level two to confirm a bounce off of that line.

The lowest red line will act as resistance. If we can break that line tomorrow it will be a very bullish signal and could act as support after that break. I am suspecting we will see a push above that tomorrow due to Friday's close action. Time will tell.

The very top red line could act as resistance as well. I would call that line hard resistance. If that is broken I would consider this to be even more bullish. If we noticed by that line it was 1st resistance but then it turned into support. In the future we could possibly see that line turn into support/resistance again.

Next let's take a look at the 1 minute day chart.

Here we have multiple support lines to look towards on Monday for a bounce play. If we see a gap above 2$ tomorrow you would have to look at a 3-5 day chart to find older supports to go off of. These support lines are there encase $SEFE falls back around these levels.

$SEFE Support levels to watch:

1.88
1.85
1.80
1.73

Anything below 1.45 would put this stock back in the favor of the Bears and would break the daily support lines. If that happens I will not be looking at this stock till it corrects back to an uptrend.

I will also be taking note of how $SEFE gaps on Monday morning along with Tuesday morning. If that is the case I will start taking this stock again for gaps as long as it closes near the HOD. I don't expect the gaps to be as strong as the originally were.

That's my plan up until Tuesdays close. I will write a more detailed article on Tuesday along with more picks to watch. Enjoy the trading week!