by Ryan Mallory

If you've followed Amazon.com (AMZN) for any significant amount of time, you'll know that over the past year or so it has seen some of the most dramatic ups and downs in the stock's history. 

Here's the nitty-gritty on the stock: 

• Text book inverse head and shoulders pattern in place but not yet confirmed (Pending Bullish)
• Found support at the convergence of the 10, 20, and 50-day moving average (Bullish). 
• 200-day Moving average looming overhead at around $201 (Bearish).
• Accumulation after breaking the downward trend off of the October highs (Bullish)
• Unfilled gap in the chart from 10/26 (Bullish)
• Has yet to put in a higher-high on the chart (Bearish)

So here are the trade parameters I'd use.

by Ryan Mallory

I came across the chart on Wynn Resorts Ltd. (WYNN) and the stock offers a very nice risk/reward setup to take advantage of.

Here's the breakdown on the stock....

• Confirmed inverse head and shoulders pattern at $115.81 (Bullish)
• Well oversold at the moment and coming off of earnings (Bullish)
• On 1/24/12, broke through the downward trend-line at $117.60 off of the 7/19/11 highs (Bullish)
• Volume appears somewhat elevated during the recent sell-off propelled by its earnings report (Bearish)
• Previously unable to break through the $123.40 price resistance level (Bearish).
• Finding support at the 50-day Moving Average (Bullish)
• Entering into a historically favorable time period for the stock: February through April (Bullish).

 

by Ryan Mallory

If the market stays propped up, and we dont' see some selling start to creep in, than you have to give some thought to trading US Steel (X), because that stock has one incredible ascending triangle pattern that it is breaking out of to the upside. 

Target wise, I would think that a breakout would easily take you to $31.50-$32. But I can't take credit for finding this trade setup, (or else I would) because Fuinhaz in our chat-room (free) found it, and a number of folks have already jumped in and made some descent profits off of it already. 

If you can, I'd wait until abou $29.26 to jump in, which we may very well get heading into the FOMC Statement release at 12:30pm (eastern).