Looking forward this week, if the SPY can hold its daily 20sma would give me greater confidence that we trade higher to test 123.00 resistance level. With the Thanks Giving holiday coming up this Thursday I would not be surprised if there is light volume trading this week. With that said, it is important to focus on the right stocks/sectors and good risk/reward trade scenarios so we can have the highest probability of follow through for our trade ideas.
One stock in particular that I will be watching is LVS, which seem to want to re-establish its trend to the upside. This past Friday price action traded back and held above the daily and hourly 20 sma. What does concern me about a potential continuous move higher is the increased volumed that occurred with the pullback over the past two weeks. The higher volume could be a forecast that the sell off could continue further.
I am also looking for the oil services sector to continue higher, particularly XOM and HAL.. Both of these stocks have been very strong in the last few weeks. I am looking for XOM to test the 72.00 resistance level and looking for HAL to continue to make new monthly highs. Both these stocks have strong hourly charts to support the strong daily price action.
