1. First, let's look at American Realty Capital Properties, a commercial real estate company.
American Realty traded up 1.13% on Thursday to $12.58.
- Thursday's range: 12.40 - 12.60
- 52-week range: 11.76 - 15.33
- Thursday's volume: 8,399,790
- Three-month average volume:
American Realty looks good for a swing trade as it is a rounded-bottom breakout. The stock closed above the 50-day simple moving average on Thursday, and so let's watch for some follow through today, which means continued trading over the 50-day simple moving average and over the 34-day exponential moving average.
The chart is struggling to move above $12.58, which has been a resistance level since the gap down on May 21.
Yesterday's candlestick engulfed the candlesticks of the last four trading days, which implies that on Friday price action will continue higher.
The real breakout will happen at a close above yesterday's close. An inside day, however, would offer a cheaper entry.
Look for an entry above the 34-day exponential moving average, which is at $12.50. I'd set a stop at a close below yesterday's low of $12.40.
Typically with a rounded-bottom breakout, the target would be the 200-day simple moving average, but there is only about 4% more to go to the 200-day SMA.