3 Longs & 1 Short to Watch

Here are some potential long set-ups as well as a potential short from last night's Stock Waves Charts of the Day video.

The Chemours Company (CC) has seen a nice reaction higher after completing its 4th wave, in what counts as a micro 5 wave move off the support low.  So it should be setting up for a corrective pullback into to the $35 to $30 region in wave 2 of its 5th wave up.  That would set up a long opportunity in wave 3.

Twitter, Inc. (TWTR) is the short opportunity I was referring to.  32.90 is the main resistance.  As long as it holds below there, odds will remain in favor of this bounce being corrective as a possible 1-2 start to this larger degree (C) wave down.

Moving over to Teva Pharmaceutical Industries Limited (TEVA), which reported this morning, we're looking for a micro c wave down to finish its corrective (b) wave.  We want to see if it will end up holding that .618 retrace, with support at 16.50.  If it gets a nice micro impulse up off that level, then we can possibly take a stab at the long side.

The Walt Disney Company (DIS) looks relatively impulsive off the Dec low.  That can fit within the larger bullish count we've been tracking with a 1-2 start to a diagonal that began at the May 2018 low.  It may get a little bit lower in wave c of (b) here, as the standard .382 to .618 retrace is 108.10 to 105.07.  But that can potentially set up a decent long entry, with a stop underneath the Dec low.

See the SW Charts of the Day video here.

Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.