Thoughts on JOY

Joy Global (JOY) seems to be at very interesting spot technically. This shortened day chart of ~ 6 months I have posted maps the range from recent highs around 66 to lows in the are of 54 and shows the typical H & S top formation marked out on the chart. The following scenarios can guide us to a potential trade in either direction. Personally, I’m looking for a long side break or pullback to support as an entry offering a better  risk : rewards set up. See my post last week for why:  http://wp.me/p2oNy1-4b

JOY Chart by Lightspeed.

JOY Chart by Lightspeed.

At this point, JOY is at the top of the shoulder and at the 200 ma. Both huge resistance.  The RSI is pressing the same level. The positive aspect is that it has been resting at these levels for 5 sessions. The support of the 20 & 50 (sloping upward) trend lines (blue arrow) offers a nice base in the event of a pullback. A breakout in price (I doubt we see volume) above last weeks highs can lead to test the 66 level again. I usually harp on a week chart to support any “technical” pattern, but the weekly charts show the exact same patterns on the week bars. Basically, there is plenty of room if the 66 level breaks and can head to the 71 level. Any breach of 58.50 and the long side game plan is a bust! I would not short this until that 50 MA slopes turns down. or simply avoid any trade in JOY.

A few symbols to watch for the group might include: AGCO,CNH,ASTE,CMCO,DE,GENC. Also watch TSCO and CMI.

Nick Pirraglia

TradersThinkTank

Disclaimer: The material provided is purely for educational purposes only. No information contained herein is a solicitation or offer to buy or sell any securities. The information provided is in no way investment advice from Nick Pirraglia, TradersThinkTank or any other contributed content. The opinions, analysis and commentary on this website are purely the subjective views of the author. Nick Pirraglia is not a Registered Investment Advisor and under no circumstances should any content from this site be used as investment advice, recommendations, or trading advice. Please consult your financial advisor prior to making investment decisions.

About Nickolas Pirraglia

Nick Pirraglia started his career in trading in 1991 after returning to the US as an Army Officer deployed in Iraq. He began as a bond broker and worked his way into trading. Expert mentoring, hard work and a disciplined approach to the markets has allowed Nick the ability to maintain a very successful career in Capital Markets and Trading for over 20 years as a professional OTC Market Maker and independent trader. Nick has also managed the trading desks for a two Dallas based capital management companies and traded equities for a Dallas based hedge fund. Nick has trained and mentored thousands of customers in the rigors of trading, technical analysis and risk controls. Recently, Nick had broadened his market experience through the design and product management of two automated trading platforms. He has the pleasure of working with some of the brightest minds in the trading community and has collaborated with experts in data, design, engineering and trading psychology. An avid long distance runner, Nick completed several marathon events, qualified for the Boston marathon, completed several long distance Triathlons to include finishing a full Ironman triathlon.
This entry was posted in Trader. Bookmark the permalink.

2 Responses to Thoughts on JOY

  1. Long JOY, nice call Nick. Also your MOS perking up. Badda bing.

  2. Thanks..close call on the MOS but these Ag.Chems can be move in front of the season. They were next in line from the diversified chems you nailed the past three weeks. Great call

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s