NEW YORK (TheStreet) -- Good day traders!
Let's be careful out there today, as there is a lot of outside factors affecting the market right now. So be cautious.
1. First, let's look at Boardwalk Pipeline Partners, which provides transportation, storage, gathering and processing services for natural gas and natural gas liquids.
Boardwalk Pipeline traded up 2.99% on Thursday, closing at $18.60 per share.
- Thursday's range: $17.99 - $19.07
- 52-week range: $11.99 - $33.00
- Thursday's volume: 2,365,805
- 3-month average volume: 1,530,760
Boardwalk Pipeline Partners looks good -- the chart has come off the bottom and is up 53% since the middle of March. This chart has worked perfectly off the bottom, trading up and consolidating. It continues trading up, forming the perfect stair-step pattern.
This chart was a rounded bottom breakout on April 15 and has been doing great since, working its way to the 200-day simple moving average. There is some resistance at yesterday's close, as the price action is having a tough time clearing this level. Watch for price action to break through the yesterday's levels and continue trading to the 200.
I'd look for an entry above $18.28, which is the t-line, but I still like the chart as low as $17.81, Tuesday's low. I'd start with a one-quarter position, then add to the position once it clears the $19 level. I'd set a stop below Tuesday's low, at about $17.77, which is the 34-day exponential moving average.
First, I would target the 200-day simple moving average at $20.64. Then I would target the gap down that occurred on February 10. The top of the gap is at $24.09, which is 22% from yesterday's close.
Stay long until you see confirmed sell signal. Confirmation comes when the chart has made a clear reversal.
2. Now, let's look at Pretium Resources, which acquires, explores for and develops precious metal resource properties in the Americas. The company's mineral interests consist of gold, copper and silver exploration projects.
Pretium traded up 3.33% on Thursday, closing at $8.39 per share.
- Thursday's range: $8.10 - $8.42
- 52-week range: $2.70 - $10.14
- Thursday's volume: 279,646
- 3-month average volume: 345,810
Pretium looks good from a technical standpoint, as the chart has been in an uptrend after forming a double bottom in March and April, which tested the uptrend. Then, it traded above the double bottom levels, but failed to break out until about June 20.
On Tuesday, price action tested the 20-day simple moving average with a big bearish candlestick, followed by a morning star signal on Wednesday. This tells me that the 20-day simple moving average is a strong support level, and will continue higher. Yesterday's trading confirmed this by opening at the 20-day simple moving average, and closing back over the t-line.
This is a small pullback opportunity, where the price is at the low end of the current uptrend channel and is offering a slightly cheaper entry level. Again, I would start with a one-quarter position and add to it on strength.
I'd look for an entry above the t-line, which is at $8.31. I'd set a stop below the recent lows, at about $8.07. My stop would be on a close below this level, not interday trading at this level. I would target the overhead resistance levels, but ultimately I would target the 52-week high of $10.14 -- 17% to the upside.
Stay long until you see a confirmed sell signal or a close below the t-line.
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