Speculation for the week of May 2 2016

APEI

Since making a breakout in early March, price experienced resistance from 22-24 resistance and 200-sma.  Bullishness, accompanied by volume slowly crept in since mid-April.  Price has taken out 200-sma on Apr 19 and is now penetrating into the resistance zone.  Stochastics entered into bullish zone.  The 1st target is 26-27.  2nd target is 31-32.

A notable chart pattern is that it has completed an H&S bottom on Apr 21.  Ice line was successfully retested on Apr 22 & 25.  Measured target is 31.4.

I am bullish.  If it pulled back to 9-ema (around 22.3) under light volume, I will consider an  entry.

BABA

BABA made a failed attempt of the 83-86 zone on Apr 21 after a prolonged period of bullish momentum in the stochastics and developed divergence in RSI.

A pullback below the 9-ema then ensued.  Note that stochastics has entered the sub-10 zone which is worth a contrarian bet.  If it further pulled back closer to 200-sma (74.1), an entry with stop loss placed around 72 could be a good bet.  With the target in the 83-86 zone, the reward to risk ratio is 5:1.

If it decisively penetrated 200-sma, that's another story. I will consider shorting it with a target of 60.