Monday, March 26, 2012

March 26, 2012 - Bulls Holding (DJIA, SP-500) & Breakouts (TSLA) & (BWLD)

I was on vacation last week so no Weekly Links today, but today revealed a couple of break outs and a bullish hold signal.

The two stars of the day are Tesla Motors (TSLA) and Buffalo Wild Wings (BWLD). Below is the TSLA daily chart. It shows a couple of pretty attractive technical buy signals. First being that it broke out of resistance at 35.20. It hit that resistance In November and December of 2011 and more recently in late February before breaking through it and pulling back two weeks ago. Second, the breakout today is on 2X average volume and is hovering around the high of day (HOD), which shows that there is an overwhelming amount of buyers. Finally, most importantly, TSLA marked a new ALL-TIME high today.

 A close second star of the day is Buffalo Wild Wings. After basing out for most of February and March in the 85-90 range, BWLD broke out to a new all time high on more than 2X average daily volume. It is now hovering at its HOD.

Now, lets look at the overall market trends. Both the DJIA and SP-500 bounced off of a trend line formed in the last couple weeks, making higher highs and higher lows. Friday marked the bounce and today marked to follow through.

The DJIA chart shows that this trendline dates back to December 2011.

In a zoomed up screenshot of the SP-500, we can see the bounce more clearly. The first bounce being at 1342 and second being at 1385.