Stocks: Bullish Setups

Gilead (GILD), Kroger (KR) and NY Times (NYT)

Gilead (GILD) forms a bull flag. After a big surge on good volume in early November, GILD consolidated with a falling flag over the last few weeks. There was a bullish reversal day last Monday, but no follow through with a breakout. Look for a move above 47.1 to forge a flag breakout that would target a move towards the next resistance around 50.

After breaking resistance with a big surge in October, Kroger pulled back to broken resistance with a falling wedge over the last two months. Broken resistance turns into support and the decline retraced 50-62% of the prior advance. More recently, KR formed a harami on Thursday-Friday. Monday's surge on pretty good volume is the first sign that support will hold. A move below last week's low would negate this setup.

The NY Times (NYT) is showing signs of life with a high volume bounce on Monday. After surging above 7 in July, the stock has been in consolidation mode since August. There is a lot of support on either side of 8. Most recently, NYT consolidated with a tight range for six days and then broke range resistance with Monday's surge.