Plenty of materials and commodity related stocks have been running hot lately. Most of the time, we focus on the strongest stocks trading near their 52 week high or all-time high. STLD – Steel Dynamics and WLDN – Willdan Group are big winners we are currently holding in that sector.

Sometimes though, we focus on special situations that offer massive profit potential. LGCY – Legacy Reserves LP, a completely beaten down Oil and Natural Gas stock is offering such an opportunity. The  stock has recently executed a loan credit agreement that strengthens the stock’s balance sheet and provides time to benefit from an industry recovery and higher oil prices.

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LGCY is a high risk play, but its Short Squeeze Potential is simply outstanding. I recently reopened a position as the stock was able to push through key price levels I highlighted for members.

legacy-reserves-logo

Click on LGCY – Legacy Reserves LP daily chart to enlarge:

lgcy-legacy-reserves-lp-chart-with-massive-short-squeeze-potential

As you can see in the chart above, this is what happened:

  • Huge run-up on massive volume in April.
  • Resumption of the downtrend.
  • Monster volume spike in October.
  • Gap up breaking the stock’s downtrend.

The stock has been able to put in higher lows and higher highs ever since. Now volume is coming back into the stock. If this pattern continues, the stock will be able to print additional higher highs. Every new high will put incredible pressure on traders and ultimately force them to cover their short positions.

We are witnessing the first signs of technical strength. The tide might have finally turned. During those initial stages of a Big Trend Change the majority of traders are not positioned correctly. The downtrend has been so brutal that traders have come to expect the stock to go down forever. When the facts change, it is easy to be in denial and fight the new uptrend. This is precisely what provides the fuel for a massive short squeeze.

The only thing the stock needs to do now is to cross the blue line. If we see a big short squeeze the former pivot high will act as a magnet providing us with a technical Price target around $4.00. Use a stop loss to protect your capital.

With a – Premium Membership – you get a weekly newsletter that highlights big winners early on. Every newsletter comes with a 15-30 min video. Grab a cup of coffee, lean back and find out about the best stocks and new market leaders!

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This undiscovered software stock is printing new all-time highs almost on a daily basis. Still, the stock seems to be flying under the radar. The volume pattern is showing massive accumulation. Combine that with a stock that has no overhead resistance and you get a potentially explosive cocktail. The set-up currently offers serious ‘Melt-Up Potential’. A situation where buyers are scrambling to get in.

Members were alerted to this ‘High Potential Stock’ 2 weeks ago: Tischendorf Letter Premium

It is important to keep in mind that the reason for big run-ups is only revealed AFTER the fact. Reasons for run-away price moves to the upside often are:

  • New customer wins
  • New disruptive technology
  • A new product announcement
  • The company getting bought out by a bigger player

 

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Click on PEGA – Pegasystems weekly chart to enlarge:

pega pegasystems all-time high bullish software stock chart technical analysis melt-up potential

You can clearly see the bullish accumulation as the chart is moving on to new highs. ‘Blue Sky Potential’ stocks often are the best choice as bullish trends can accelerate dramatically. From a purely technical perspective, PEGA – Pegasystems has the potential to start a parabolic move.

Pegasystems provides business process automation software which includes sales, marketing, service and operations. What really caught my attention though, are the markets it is focused on:

‘The company primarily markets its software and services to financial services, healthcare, insurance, communications and media, public sector, manufacturing and life sciences.’

These are all markets that are perceived to massively benefit from the Trump win. That might very well be why Pegasystems has started such a powerful move.

As a technical trader my job is to find the best stocks for my subscribers early on. We focus on the charts to give us early clues. We enter when the technicals tell us to do so. We do not wait for an answer to the ‘Why?’ question. That way, we profit from the best and most profitable price moves!

With a – Premium Membership – you get a weekly newsletter that highlights big winners early on. Every newsletter comes with a 15-30 min video. Grab a cup of coffee, lean back and find out about the best stocks and new market leaders!

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One of the most popular stocks out there is undoubtedly TSLA – Tesla Motors. Its charismatic leader Elon Musk is widely followed, sadly the technicals of the stock remain bearish.

In this quick 4 min video I explain why the overall chart pattern remains bearish:

TSLA – Tesla Motors: 4 Minute Video Analysis

  • All major moving averages are now trending down
  • Price is trading below all the major moving averages
  • The slower and very important MA 200 is threatening to roll over

As you can see in the chart, Tesla hit an area of multiple resistance. Whenever price gaps into ‘Confluence of Resistance’ it usually gets rejected on the first attempt.

Click on TSLA – Tesla Motors daily chart to enlarge:

tsla tesla bearish chart technical analysis scenario explained video how to protect yourself

What is worrisome here is the underlying trading psychology. Elon Musk indicated Tesla might be on the verge of becoming profitable. This is probably the most bullish piece of news you would expect from a CEO during a company’s conference call.

A quick look at the chart reveals the whole story. Price reacted very badly to that piece of news and over the past few days the stock was hit with relentless selling pressure. We now have a stock that wasn’t able to react well to good news and keeps trending down.

‘Price Precedes News’ is the famous market adage that comes to mind here. In Tesla’s case it could mean bad things are to come. If price does accelerate to the downside, bad news would simply add fuel to the fire and confirm the current downtrend.

There is good news though. You do not need to ride a stock during a waterfall decline. Using a stop loss can protect you from big and painful losses.

With a Premium Membership you get a weekly newsletter where you learn ‘How to make money’ and more importantly, ‘How to protect your profits’. Every newsletter comes with a 15-30 min video. Grab a cup of coffee, lean back and find out about the best stocks and new market leaders!

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Today PFE – Pfizer announced they will acquire MDVN – Medivation for $14 billion. The stock went up almost 20% when news hit the wires! Three weeks ago MDVN – Medivation was highlighted for members as a High Potential Stock pick.

My job is to make sure members of the Tischendorf Letter Premium have exposure to the best sectors at the right time. Every week I select the best stocks within those sectors. A stock is only highlighted when it offers great pattern pressure. It also needs to meet several other criteria that increase odds for an explosive move to the upside.

MDVN – Medivation met all those criteria. It was recommended as a very low risk set-up offering a great way to get exposure to the Biotech sector. This chart shows how members made money:

Click on MDVN – Medivation chart to enlarge:

MDVN Medivation Buy Point PFE Pfizer Takeover Biotech Stock Chart Profit Technical Analysis Review

My research and technical scanning strongly suggested increasing exposure to Biotech and Energy stocks. I then shared this observation with my members.

A premium membership offers the following benefits:

  • Trade idea generation.
  • Videos. You get to see the stocks I am focusing on.
  • Ongoing education. I explain key technical concepts and how I trade specific stocks.

Own the best stocks and learn how to trade them!
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This small cap next generation software technology stock was recently highlighted as a High Potential Stock for members. RDCM – Radcom announced a profitable quarter and was chosen by AT&T to transform and modernize its network. The company specializes in NFV – Network Functions Virtualization.

Explained in simple terms, it means the need for new hardware is reduced. Existing hardware is replaced by software running in the cloud. A huge shift towards next-generation Software-Centric Networks and SDN – Software-Defined Networking is underway. I expect more big telecommunication companies to upgrade their wireless and broadband network infrastructure.

Click on RDCM -Radcom monthly chart to enlarge:

RDCM Radcom Next Generation NFV Networks Software Stock Technical Analysis Price Chart AT&T $RDCM $T

RDCM – Radcom is now profitable, offers huge long-term pattern pressure. The monthly chart looks bullish and the stock is on the verge of being discovered by bigger players. If more contracts similar to the one announced with T – AT&T materialize, big institutional money will quickly discover the stock. RDCM – Radcom might very well be a big winner in the making. Members are positioned accordingly.

Chart Update & Technical Analysis Thoughts 08/31/16:

Click on RDCM -Radcom daily chart to enlarge:

RDCM Radcom NFV Network Functions Virtualization Bullish Chart Technical Analysis Volatility Contraction

RDCM – Radcom’s chart set-up continues to look extremely bullish for the following reasons:

  • Zero Selling Pressure
  • Bullish Volume Decrease
  • Volatility Contraction

Join and get exposure to new leaders early on! Tischendorf Letter Premium

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How The Market Reacts To News – Marty Schwartz ‘Pit Bull’ Market Wizard Lesson

August 9, 2016

We are in the midst of earnings season. The perfect time to remind ourselves that it is not the news itself that is important. What is important is how price reacts to news! Here is the passage with timeless trading wisdom from Marty Schwartz: ‘The Pit Bull Guide to Successful Trading’ explaining that key issue. This […]

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Crude Oil Bullish Reversal – Texas Permian Basin Leading Stock: PE – Parsley Energy

August 9, 2016

Most traders are currently bearish for $WTIC Light Crude Oil. But, if you look at the price chart, you see a bullish inverted complex head and shoulders formation in the making. This is a classic Reversal Chart Pattern. A technical set-up indicating that oil prices might have found an intermediate bottom. Click on $WTIC – Light Crude Oil daily […]

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MZOR Mazor Robotics – Medical Devices Monster Stock

August 7, 2016

You follow the markets very closely? Then you have come across the Medical Devices sector. It is one of the strongest sectors out there. The performance of IHI – Medical Devices ETF has been phenomenal. This year, IHI has printed new all-time highs almost on a daily basis. Members of the Tischendorf Letter Premium are profiting from that […]

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Tischendorf Letter Interview: Trading Tech Stocks ACIA – Acacia Communications & Gold Mining Stocks

June 16, 2016

Mike Swanson from WallstreetWindow invited me back for an audio interview! We discuss the differences and similarities in trading tech growth stocks and gold mining stocks. If the embedded Youtube video doesn’t appear in your email or reader click here to view it: Tischendorf Letter Interview – ACIA & Gold Miners http://www.tischendorf.com/wp-content/uploads/2016/06/Mike Swanson on 2016-06-16 at […]

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NTGR Netgear All Time High Stock – Bullish Technicals & Massive Pattern Pressure

June 3, 2016

The communication equipment stock NTGR – Netgear has developed an outstanding technical set-up. The weekly chart has built a picture perfect long-term ‘cup with handle formation’ that is offering ‘massive pattern pressure’. NTGR – Netgear was recently highlighted in the Tischendorf Letter Premium. Members had plenty of time to build a position. The stock is about to run […]

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