by Jeff Pierce, Zentrader
NOR was a candidate for our Astrology Traders service this past week based on the chart pattern, but Karen wasn’t sold on the trade idea so we passed, but I wanted to share with you a setup that I think could have some legs based on the short term strength in the chart and the strong move higher in AA that is confirming the move. While we won’t be adding it to our watchlist of names I think it’s worth watching. It’s also a chart pattern I don’t typically point out (bottom fishing), and I also don’t trade these patterns in my own account, but different strokes for different folks. Many traders are more comfortable buying these charts, I’m just not one of them.
AA reports on January 9th after the bell and while I have no idea whether it’s going to move higher after the report, if the last few months is any indication of it’s direction, I’d say this is going higher. The weekly is at a critical juncture as it’s broken out of a sideways consolidation but is now facing some stronger resistance.