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Semiconductors Send Out Warning Signs $SMH
Semiconductors have led this market for almost two years. The upside move on the semiconductor ETF $SMH has been insane. However, in recent weeks something major has changed. The semi's have rolled sharply, even as the stock market makes new all-time highs. This should be a big warning sign not just for the semi's but for the entire market. While end of year window dressing and light volume may keep the markets at all-time highs, it is likely there is trouble brewing in early 2018. In addition, the semiconductor index has a classic bear flag formation and is unable to get back over the daily 50 moving average. I have it penciled in that the semiconductor ETF SMH will see another big leg down in the first quarter of 2018, hitting $89.75. This is another 10% drop in the index. For investors, just simply compare the chart of the semi's before from the start of 2016 to November 2017. Then compare and see the divergence in December. It is shocking. Note the chart below.
Nicholas Santiago
InTheMoneyStocks
Carmax Inc (NYSE:KMX) Steered Off Course After Earnings
Today, leading used auto retailer Carmax Inc (NYSE:KMX) is sinking lower after reporting earnings. Currently, KMX stock is trading down by 4.29 percent to $65.55 a share. The stock is now trading slightly under its important 200-day moving average which is a bearish indication for the shares. Traders must now look at the $61.50 as the next major chart support level for the stock. This support area is where the stock was defended in June 2017. Very often, the institutional traders will support an equity when it retests and retraces into important prior levels. Keep this support area on the radar as that will be where I look to get into KMX stock on the long (buy) side.
Nicholas Santiago
InTheMoneyStocks
On Watch For Breakout In Shares Of Intercept Pharmaceuticals Inc
Shares of Intercept Pharmaceuticals Inc (NASDAQ:ICPT) are hammering on a breakout trend line at $62.50. Should the stock push through, it will likely surge to as high as $66.50, perhaps within a day or two. Definitely a chart investors should be watching.
Gareth Soloway
InTheMoneyStocks
Why I Am Considering A Short On Intel Corporation
Shares of Intel Corporation (NASDAQ:INTC) have rocketed higher in recent months after earnings showed signs of life. However, the run may have just topped out. Note this trend line stretching back to 2012. I am starting to look more closely at a swing short trade on shares of Intel Corporation. The pull back target in 2018 would be $38.00. Part of me thinks it could pop to $50 into year end, but anywhere between $47.50 and $50.00 is a solid accumulation short zone.
Gareth Soloway
InTheMoneyStocks
Major Short Swing Trade Level Approaching On Freeport-McMoRan Inc (NYSE:FCX)
In the last two trading weeks, Freeport-McMoRan Inc (NYSE:FCX) has spiked almost 25%. This recent spike higher has been on hopes of economic growth in 2018 due to corporate tax cuts. However, the underlying commodities like gold and copper are not confirming this move. While I would not short Freeport-McMoRan Inc yet, there is a quickly approaching major level. The level is around $18.75 and is found by connecting the highs from late 2015, late 2016 and early 2017. When connected, this trend line gives you a dead swing trade short level of $18.75. Shares of Freeport-McMoRan Inc are only a little over a Dollar away. Every past hit of this trend line has caused a massive drop in the stock. Ready to lock and load a short here, heads up.
Gareth Soloway
InTheMoneyStocks
Winnebago Industries Inc (NYSE:WGO) Heads South After Earnings
This morning, leading recreational vehicle (RV) manufacturer Winnebago Industries Inc (NYSE:WGO) is coming under selling pressure after reporting earnings. The RV giant traded as high as $58.65 at the open before rolling over. Currently, WGO stock is trading lower by $4.20 to $53.20 a share. The daily chart pattern is now signaling a high volume reversal day (bearish engulfing bar) and this should lead to further downside in the coming trading sessions. Traders should now watch for important daily chart support around the $49.00 level. This level is where the stock broke out of a weekly chart base in mid-November.
Nicholas Santiago
InTheMoneyStocks
Twitter Inc (NYSE:TWTR) Hits Double Top, Likely To Pull Back
Shares of Twitter Inc (NYSE:TWTR) slammed into the pivot high from October 2016 at $25.50. At that time, the stock was a potential buyout play. While Twitter Inc is unlikely to be bought out now, it does appear they are figuring out how to monetize the social platform. While long-term bullish, investors and traders can look to buy puts on Twitter Inc or short it flat out at this level. I expect a pull back off this $25.50 resistance back to $22.00, maybe even as low as $20.00.
Nicholas Santiago
InTheMoneyStocks
The Herbalife Ltd (NYSE:HLF) Chart Indicates Downside
Herbalife Ltd (NYSE:HLF) is a leading global nutrition company. Recently, the stock has tried to recapture its 50-day moving average but has failed on multiple attempts over the past month. When a stock trades below a key moving average it will generally be viewed as a negative in the chart. Today, HLF stock is trading around the $68.00 level which is just above the important 200-day moving average at $67.45. A failure to hold this key area will indicate further weakness in the equity and a potential decline down into the $61.00 level. The $61.00 area is where there should be solid institutional support. This level is where the stock was supported in August 2017. Often, prior support levels will be defended when retested.
Nicholas Santiago
InTheMoneyStocks
Halliburton Company (NYSE:HAL) On Breakout Watch
Shares of Halliburton Company (NYSE:HAL) are hammering on the $46.00 level for the 5th time in the last few months. The likelihood of a breakout is strongly increasing as an inverse head and shoulder pattern has formed. Should Halliburton Company breach $46.00 on a daily closing basis, the stock will likely trade to $50.00 (the target of the head and shoulder pattern). Keep this on your watch list in the coming days.
Gareth Soloway
InTheMoneyStocks
Jabil Inc (NYSE:JBL) Is Sliding, Watch This Level
Today, leading electronic manufacturing services and solutions company, Jabil Inc (NYSE:JBL), is failing to participate in the broad based market rally. JBL stock is declining lower by 0.45 cents to $27.42 a share. Last week, Jabil Inc reported earnings, but that did not help the stock price. Shares of JBL have been under pressure since September 19, 2017 when the stock traded as high as $31.60 a share.
Traders should note that JBL stock is now trading below its important 50 and 200-day moving averages. This puts the stock in a weak technical position on the charts. The next major support level for JBL will now be around the $26.25 level. This important area is where the stock broke out in March 2017. Often, equities that are declining will be defended around their prior break-out levels. I will be looking to play JBL soon, so watch this level.
Nicholas Santiago
InTheMoneyStocks
This Says Another 20% Drop Is Coming...
Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) have already broken major support, trading near $10 from a 52 week high of over $15.00. The nasty fact is, Advanced Micro Devices is going lower. There is a bear flag forming on the daily chart that signals further downside. There is no support until $8.00. That means another 20% drop. Once at $8.00, I will start getting interested in going long.
Nicholas Santiago
InTheMoneyStocks
After Tax Reform Will Infrastructure Be Next?
It is safe to say that most of 2017 has been dominated by the U.S. tax reform bill. Almost everyday we hear a politician comment about the bill that moves the stock market. At this stage of the game, the GOP better get this bill passed. Yesterday, Alabama voted in a Democratic to the U.S. Senate and this could be a problem for the GOP if this bill does not get passed before he is sworn in. At this time, the tax reform bill is expected to be signed into law next week.
So what is next for the stock market to look forward to after tax reform? It is infrastructure, this has been promised by the administration and will likely be the next big task that is taken on by the GOP in 2018. Here is a list of possible stocks that could be in play next year if there is an infrastructure bill introduced. They are Chicago Bridge & Iron Company (NYSE:CBI), United Rentals, Inc (NYSE:URI), Martin Marietta Materials (NYSE:MLM), Cemex SAB de CV (NYSE:CX), U.S. Concrete Inc (NASDAQ:USCR), Jacobs Engineering Group Inc (NYSE:JEC), Fluor Corporation (NYSE:FLR), Vulcan Materials Company (NYSE:VMC) and Caterpillar Inc (NYSE:CAT). Traders should be watching the charts of these stocks closely as they will often give us the pattern formation when the infrastructure debate will take place in the United States.
Nicholas Santiago
InTheMoneyStocks
Don't Hit The TAP On Molson Coors Brewing Just Yet
Today, leading brewery stock Molson Coors Brewing Co (TAP:NYSE) is trading lower by 0.64 to $79.51 a share. This stock has been steadily declining since October 2016 when the stock traded as high as $112.19 a share. TAP stock is now trading below its important 50 and 200-day moving averages, this indicates technical weakness. Traders should also note that there is bearish weekly chart pattern forming in the stock. This suggests that the stock could still have one more decline in the cards. Traders should now watch $72.50 area for major chart support. This level was where the stock broke out in September 2015. Often, prior break-out levels will serve as major support when retested. This looks to be a solid trade area for TAP stock.
Nicholas Santiago
InTheMoneyStocks
$JUNO Hits Support For Technical Bounce Trade Here...
Shares of Juno Therapeutics Inc (NASDAQ:JUNO) have fallen sharply over the last two trading days. On a technical basis, the biotech hit major support when it broke through $46.00. This is a bounce level for investors looking for a quick couple day bounce. Look for a snap back to $50 in the coming days.
Gareth Soloway
InTheMoneyStocks
Edison International (NYSE:EIX) Sells Off As Wildfires Spread
Edison International (NYSE:EIX) is a leading public utility with a major presence in Southern California. The stock has been declining sharply since the wild fires began in the Los Angeles area last week. On December 1st, 2017, EIX stock was trading as high as $81.96 a share. Traders should note that the stock is now trading around $68.00 a share as the wildfires in Southern California continue to spread. The stock is now trading below its important 50 and 200-day moving averages. This chart pattern indicates weakness in the equity and potentially further downside.
The next major support area for EIX will be around the $62.00 level. This is where the stock should be defended by the institutional money. In February 2016, EIX stock broke out from this area. Very often, when falling stocks retest there prior break-out levels they will be supported and defended. This is a trade area where I will look to get involved in the stock on the long side. I will be trading the stock by buying the equity or by buying call options in the name.
Nicholas Santiago
InTheMoneyStocks
Gold Mining Stocks Keep Falling, Know This Trade Level
Many of the leading gold mining stocks have been declining since September 2017. The highly followed VanEck Vectors Gold Miners ETF (NYSEArca:GDX) peaked out on September 7, 2017 at $25.58 a share. Since that high pivot, the GDX has traded down to the $21.50 level and will likely fall lower in the near term. Leading gold mining stocks such as Newmont Mining Corp (NYSE:NEM), Royal Gold Inc (RGLD:NASDAQ) and Randgold Resources Ltd (GOLD:NASDAQ) are now trading below their important 50-day moving averages. This is signaling near-term weakness for the industry group.
Randgold Resources Ltd (GOLD:NASDAQ) is one gold mining stock that has caught my eye. This stock should have solid chart support around the $86.00 level. This area is where the stock was defended in July 2017 and will likely serve as support when initially tested. Randgold Resources Ltd (GOLD:NASDAQ) could be setting up nicely for a long side trade this level.
Nicholas Santiago
InTheMoneyStocks
Shares Of Endo International $ENDP May Have 50% Upside, Note This Chart...
In recent weeks, pharma plays like Valeant Pharmaceuticals Intl (VRX) and Teva Pharmaceutical Industries (TEVA) have surged. Valeant is up almost 100% since October and Teva is up almost 50%. In other words, pharma has become a hot sector as Trump's corporate tax cuts near finalization. One pharma stock that is lagging but has a gorgeous bull flag is Endo International (NASDAQ:ENDP). I have placed this one on my watch list. Should the bull flag start to breakout with price pushing over $7.75, it becomes a strong buy with major upside potential. The upside potential target is $10.65. This would be a catch-up trade to the other pharma plays like Valeant and Teva.
Gareth Soloway
InTheMoneyStocks
Ciena Corp (NYSE:CIEN) Tanks After Earnings, Watch This Level
Today, leading computer networking company, Ciena Corp (NYSE:CIEN), is tanking after reporting earnings. The stock is falling lower by nearly 5.0 percent to $20.24 a share. CIEN stock is now trading below its 50-day moving average, this puts the stock in a weak technical position. The monthly chart is now signaling further downside for the stock. Traders must now look at the $16.75 area as the next major chart support level. Very often, when a stock declines so sharply in a single trading day it will take time before it will be defended by the institutional money crowd. I will be keeping this stock on my watch list until the equity drops into this important support level.
Nicholas Santiago
InTheMoneyStocks
This BUD (NYSE:BUD) Is For You
Anheuser Busch Inbev NV (NYSE:BUD) is a leader in the beer brewing industry. Recently, the stock has been coming under selling pressure. BUD stock has been declining since topping out on October 10, 2017 at $126.50 a share. Today, the brewing giant is trading lower by 0.24 cents to $112.73 a share.
Traders should note that BUD stock is now trading below its important 50-day moving average. This chart formation puts the stock in a weak technical position. The next major support level for BUD stock should be around the $109.00 area. This is a very important retrace level and a place where the stock was defended in July 2017. Often, these chart factors will provide a very solid chart level for a bounce and long trade in the stock.
Nicholas Santiago
InTheMoneyStocks
The Chart That Told Me To Short Costco Wholesale Corp (NASDAQ:COST)
Costco Wholesale Corporation (NASDAQ:COST) was upgraded yesterday. Mind you, this came after a run in the stock from $154 to $188. For some reason, an analyst thought it was the right time to upgrade Costco after a huge run like this (I don't get it). Anyways, the stock opened higher and then sold off. The reason for the reversal was because the stock slammed into a great resistance trend line (as seen in the chart below). This triggered my short. This is a no-brainer trade in my opinion as the stock was so insanely overbought that it was a huge pullback opportunity. Add in the massive trend line and it likely is a recipe for profit.
Gareth Soloway
InTheMoneyStocks
Clovis Oncology Inc (NASDAQ:CLVS) Sinking But Getting Attractive
Clovis Oncology Inc (NASDAQ:CLVS) is leading biotechnology company that is focused on developing and commercializing anti-cancer agents globally. This stock has been under pressure since peaking on July 1, 2017. At that time, CLVS stock traded as high as $99.45 a share. Today, the stock is trading around $59.00 a share. This is about a 40.0 percent decline in the stock in the past six months.
The stock is now trading down towards its 200-week moving average. This important moving average is around the $55.00 level. This area should serve as major chart support when it is tested. This is a very attractive area for a bounce in the stock. Now please understand, all biotechnology stocks do have a lot of risk in them. So the way that I will trade the stock will probably be with a call option. By using options I will simply be risking the premium paid for the call option, therefore knowing my maximum loss if I'm wrong on the trade. The positive upside of using a call options is that the potential percentage gain will be much greater than if I actually bought the stock outright.
Nicholas Santiago
InTheMoneyStocks
This Video Game Stock Should Be On Your Trading Radar
Leading video game developer, Electronic Arts Inc. (NASDAQ:EA), has been under selling pressure since August 31, 2017. At that time, the stock traded as high $122.79 a share. Today, EA stock is trading lower by $4.25 to $101.78 a share. The video game giant stock is now trading below its important 200-day moving average. This tells us that the stock is weak and should trade lower before finding institutional sponsorship.
Traders and investors should now look for major chart support around the $96.50 area. This level is where the stock broke out in May 2017. Very often, this prior breakout area will be defended when it is retested. Traders and investors should keep this support level on your radar.
Nicholas Santiago
InTheMoneyStocks
Technical Trade Lesson: Weekly Outside Reversal Pattern
Workday Inc (WDAY:NASDAQ) is a leading provider of enterprise cloud applications for finance and human resources. The stock recently topped out on November 27, 2017 at $116.89 a share. Since that high pivot, the stock has declined sharply. Last night, the company reported earnings and the stock is falling lower today by $2.54 to $104.00 per share. The pattern forming on the weekly chart is what we call an outside reversal pattern. This is usually a very bearish pattern that indicates further downside is possible in the coming weeks. Traders should realize the stock is short-term oversold on the daily chart already, so there could be some minor bounces or positive trading days in the stock. But please note, the weekly reversal pattern that has formed is not a sign of strength. This pattern will generally indicate more weekly chart selling down the road.
So where are the support levels for WDAY stock? There are several important support levels coming up. The first support level that I see is the 200-day moving average at $98.42. This moving average will be major daily chart support if price trades directly into the level. Should price consolidate above the 200-day moving average then that area will become minor support. In other words, watching the pattern develop is extremely important, you must see how a stock trades into a particular support level. The second major support level will be around the $95.00 area. This is where the 50-week moving average is located. This will likely be a major support level when tested as long as price comes directly into that support level. The next major support area for WDAY stock will be around the $90.50 level. This important area is where the stock broke out in May 2017. If you have been reading my work over the years than you know that prior breakout levels are often major chart support when retested. Again, it is very important to see how the stock trades into that level, the chart pattern is always critical and it can change the odds of the trade.
Nicholas Santiago
InTheMoneyStocks
Autodesk Inc (NASDAQ:ADSK) Hit The Skids
This morning, leading design software and services company, Autodesk, Inc. (NASDAQ:ADSK), is trading lower by nearly 15.0 percent on the session. The decline comes after the company reported earnings and announced a restructuring plan. Traders should note that ADSK stock is now trading below its important 50-day moving average. This puts the stock in a weak technical chart position.
Often when a stock declines this sharply from a high pivot it will indicate lower prices in the coming weeks. The next major chart support level for ADSK stock is around the $96.00 level. This area is where the stock broke out in May 2017. Generally, when a stock retests its breakout level it will be defended when retested.
Nicholas Santiago
InTheMoneyStocks
This Is Why Oil And Oil Stocks Are Headed Lower $XLE $USO
Oil is trading near 52 week highs. Just a couple days ago, it grazed $60/bbl, the highest level in well over a year. So why am I so bearish on the commodity and oil stocks? The simple answer comes from looking at the performance of oil stocks. Individually, you can look at Haliburton (HAL) or the ETF that tracks oil stocks, the $XLE. You would expect these stocks to be at or at least near 52 week highs with the bullish market action and oil near multi-year highs. However, that is not the case. In fact, the $XLE (Energy Fund ETF) has a very bearish chart and looks ready to break lower. In addition, Saudi Arabia is likely keeping oil up only until the Saudi Aramco IPO debuts early next year. The US is producing massive amounts of oil/natural gas as well. Even for an economy that is growing, there is too much net oil. The charts signal a bearish drop coming in oil and oil stocks. Watch for the XLE to break the below trend line for a move as low as $62.00.
Gareth Soloway
InTheMoneyStocks
This Medical Device Stock Just Broke Down
This morning, leading medical device maker, Boston Scientific Corp (NYSE:BSX), is trading lower by 4.1 percent. The negative news for the stock is that the company pulled out of a Piper Jaffray Healthcare Conference today.
Either way, the shares are down and the stock is now trading below its 50 and 100-day moving average. Whenever a stock trades below these critical moving averages it puts the stock in a weak technical position. Traders must now look lower for major chart support. The next major support area would be around the $25.00 level. This area is where the stock broke out in April 2017. Often, when prior break-out levels are tested they will be defended by the institutional money traders. Traders should keep BSX on the radar when it trades around the $25.00 area.
Nicholas Santiago
InTheMoneyStocks
$SQ Corrects Hard, This Is The Downside Trade Target...
Shares of Square Inc (NYSE:SQ) fell sharply on Monday, following an analyst sell rating on the stock. This drop should come as no surprise to investors, as the stock has jumped more than 200% this year alone. A simple pull back was inevitable, especially after the crazy surge seen in the last few weeks. Square Inc was trading at $35 early in November. Just days ago it topped out near $50. There is a long-term trend line which will be the baseline for a pull back in Square Inc. Currently, the trend line sits around $36 and will likely be the target of the drop. Once there, the stock will get a strong bounce, though the long-term highs are likely in.
Gareth Soloway
InTheMoneyStocks
The Market Is At New Highs, But Not This Tech Giant
Today, all of the major stock indexes are surging to new all time highs. The highly popular NASDAQ Composite which is a technology heavy index is breaking out, but Oracle Corp (NASDAQ:ORCL) is not making new highs. In fact, ORCL stock is actually trading lower today by 0.43 cents to $48.58 a share. The stock is also trading below its 50-day moving average which puts it in a weak technical chart position.
Oracle Corp (ORCL) stock topped out on September 14, 2017 at $53.14 a share. Since that high pivot in the stock it has been pulling back and is now forming a bearish chart pattern on the daily chart. When a stock has no relative strength when compared to the major stock indexes it tells us that this stock should trade lower. ORCL stock has major chart support around the $44.00 area. This is where the stock broke out in June 2017. Often when a stock breaks out of a base it will be defended when the breakout level is retested. The $44.00 area looks solid for a bounce in this popular tech stock.
Nicholas Santiago
InTheMoneyStocks
Strong Sell Signal Just Triggered On Bitcoin... Look For This Move
Bitcoin hit a new all-time high $8,285 today. However, it is choppy and has formed a very bearishing intra-day pattern known as a head and shoulders. This dictates that when the neck-line breaks (as seen in the chart below), a fall will follow down to $8,075. This is a classic chart setup that works on anything from stocks to commodities and currencies. If the neck line breaks, the target should be reached within hours.
Gareth Soloway
InTheMoneyStocks
This Biotech Stock Struggles To Hold Key Level
This morning, many of the leading biotechnology stocks are trading lower to start the day. The highly followed and traded iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) is trading lower by $2.70 to $308.51 a share. One of the most important components of the IBB is Amgen Inc (NASDAQ:AMGN).
This leading biotechnology stock has been pulling back since September 14th when it traded as high as $191.09 a share. Today, the biotech giant is trading at $168.46 a share. The stock is currently holding its 50-week moving average, but a weekly chart close below $167.00 level should trigger further declines. The $160.00 level is going to be the next major support area in the stock. This level is where the stock was defended in June 2017 and should be solid support when retested.
Nicholas Santiago
InTheMoneyStocks
Cummins Inc (NYSE:CMI) Tanks After Tesla Semi Debut
Today, most of the leading truck engine manufacturers are coming under heavy selling pressure after electric vehicle maker, Tesla Inc (NASDAQ:TSLA), announced that they are now making electric trucks. Truck engine stocks such as Cummins Inc (NYSE:CMI), Paccar Inc (NASDAQ:PCAR) and Navistar International Corp (NYSE:NAV) are plunging lower on the news.
Cummins Inc (NYSE:CMI) is trading lower by $6.82 to $160.32 a share. Traders should note that CMI stock is now testing its daily chart 200-day moving average. At this time, this important moving average is holding up as support, but a close below this critical moving average would be negative for the stock. The next major support level for CMI stock would be around the $150.00 area. This is where CMI was defended in August 2017 and should serve as a major support when initially retested. Keep this level on the radar for CMI stock as a major bounce level.
Nicholas Santiago
InTheMoneyStocks
Stock Breakout Alert On Bed Bath & Beyond Inc. $BBBY
Shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) just broke out above the daily 20 moving average, after consolidating in a bull flag pattern. This coming on the same day as Wal-Mart (WMT) earnings blew past expectations. This chart looks extremely good for a strong move higher as retail may have turned a corner into Black Friday and Christmas. Look for upside as high as $27.00.
Gareth Soloway
InTheMoneyStocks
This Is Not The Best Buy Yet
Today, leading retailer of technology products, Best Buy Co., Inc. (NYSE:BBY), is declining sharply lower after reporting earnings. The stock is trading down by nearly 6.0 percent to $53.98 a share. Traders should note that BBY shares are now testing the daily 200-day moving average. A daily chart close below that key moving average should signal more downside for the electronics retailer.
The next major chart support level for BBY stock will be around the $49.00 area. This a scene of the crime support level that will often be defended when retested. Traders should keep an eye on this level as it should give us a solid trading opportunity.
Nicholas Santiago
InTheMoneyStocks
Know This Trade Level For This Leading Regional Bank Stock
Since the start of November, leading regional bank stock, U.S. Bancorp (NYSE:USB), has been pulling back on the charts. On November 2, 2017, USB stock traded as high as $55.08 a share, today the stock is trading at $52.02 a share. The one negative for the stock is that it is trading below its 50 and 200-day moving averages. This chart formation tells us that the stock is vulnerable to lower prices in the coming weeks.
Traders must now watch the $49.00 area as the next major chart support level. This level was defended in September 2017 by the institutional money and it should be defended again when it is retested. It is always important for traders to know where they are wrong, so I would place a stop-loss below the $47.00 level using a weekly chart close. The upside targets for USB stock would be $55.00 as a first target and ultimately $60.00 a share as the final target.
Nicholas Santiago
InTheMoneyStocks
Does This Stock Chart Predict Trouble For $WMT Earnings, See It Here...
Shares of Wal-Mart Stores Inc (NYSE:WMT) have been on a rampage of late. Since early October, the retailer has seen their stock price jump from the $77 range to a 52 week high of $91.98 on Monday, November 14th, 2017. This surge comes with almost all other retailers collapsing lower. Many retailers like Macy's and J C Penny are down more than 50% in recent months. So is this stock price surge for real? The stock chart says 'NO'. While Wal-Mart Stores Inc tagged a new 52 week high on Monday, it reversed from those highs and closed at the lows. This formed a classic extreme bearish topping tail. Topping tails are clear top signals and signal downside. This signal coupled with many other overbought indicators and a tough retail environment tell me this will likely trade lower on earnings. Earnings are set to be reported on Thursday morning. Expectations are for $0.99 per share on $121 billion in sales.
Gareth Soloway
InTheMoneyStocks
Delta Air Lines, Inc. (NYSE:DAL) Flying Under The Radar
Leading airline stock, Delta Air Lines, Inc. (NYSE:DAL), has been pulling back since mid-October. At that time, DAL stock traded as high as $54.00 a share. Today, DAL stock is trading around $49.00 a share. The stock is now trading below the important 50 and 200-day moving averages. This tells me that the stock is in a weak technical chart position. Traders must now look lower for major chart support.
One lower level that catches my eye is the $45.50 area. This level is where the stock was defended in early September and will most likely be defended again when retested. Traders can look to buy DAL stock around the $45.50 level. It will also be important to place a stop loss under the $44.00 level on a weekly chart close. This trade setup should present a solid risk/reward opportunity with upside around the $56.00 area.
Nicholas Santiago
InTheMoneyStocks
Norwegian Cruise Line Sinks After Weak Guidance
Today, leading cruise line operator, Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH), is falling after reporting earnings. NCLH stock is trading lower by nearly 3.0 percent on the back of weaker guidance. Other leading cruise line stocks such as Royal Caribbean Cruises Ltd. (NYSE:RCL) and Carnival Corporation (NYSE:CCL) are also declining in sympathy to Norwegian Cruise Line Holdings shares. Traders must now notice the bearish consolidation pattern on NCLH stock chart. This pattern signals a decline down to the $48.50 area. This level should be solid support for a bounce in the stock when it tests that level.
Nicholas Santiago
InTheMoneyStocks
Johnson Controls International plc (NYSE:JCI) Plunges After Earnings, Know This Trade Level
Today, leading global diversified technology and multi industrial company, Johnson Controls International plc (NYSE:JCI), is declining lower by nearly 6.0 percent. The fall in JCI stock comes after the company reported earnings and guided FY18 below consensus. These days if a company's guidance is poor the stock will usually suffer.
JCI stock is now trading below its important 200 and 50-day moving averages. This puts the stock in a weak technical chart position. Often when a stock sells off with this pattern and volume it will signal further downside is in the cards before a bottom can be found. Traders should now watch the $34.50 area as the next major support level. This institutional support area is where the stock broke out in April 2016. Generally, when stocks test past breakout levels they will initially be supported by the institutional crowd.
Nicholas Santiago
InTheMoneyStocks
Expedia Inc (NASDAQ:EXPE) Has A One Way Ticket Lower
Recently, several leading online travel sites come under pressure after reporting earnings. Expedia Inc (NASDAQ:EXPE) started the decline in the online travel stocks on October 27, 2017 when the shares dropped by 18.1 percent. Since the EXPE earnings report other online travel stocks such as The Priceline Group Inc. (NASDAQ:PCLN) and TripAdvisor, Inc. (NASDAQ:TRIP) have fallen lower as well. Needless to say, this industry group is under pressure.
Expedia Inc (NASDAQ:EXPE) shares traded as high as $154.24 on October 20, 2017. Today, EXPE is trading around $118.24 a share. The stock is also trading below its weekly 50 moving average which indicates weakness on the charts. Traders and investor now have to look much lower for major institutional sponsorship. The next major support area for EXPE stock will be around the $95.00 level. This area is where the stock was defended back in February 2017. Traders and investors need to be patient with this equity as the trend is down and further declines look likely in the coming months.
Nicholas Santiago
InTheMoneyStocks
Airline Stocks Struggle To Get Lift Off, Watch This Level
Since this earnings season has begun in October the airline stocks have struggled to move higher. Leading airlines stock such as Delta Air Lines, Inc. (NYSE:DAL),American Airlines Group Inc. (NYSE:AAL), Southwest Airlines Co. (NYSE:LUV) and United Continental Holdings, Inc. (NYSE:UAL) have been under pressure recently. Higher fuel prices are certainly starting to weigh on these leading transportation stocks and that has not helped the shares.
American Airlines Group Inc. (NYSE:AAL) is forming a daily chart bearish consolidation pattern. This pattern signals potential downside in the near term. Traders should note that the longer the bearish sideways pattern remains the lower the price of AAL stock can go. Today, AAL stock is trading lower by $0.62 to $50.04 a share. The airline giant should have major chart support around the $43.50 area. This support level is where the stock was defended in May and September 2017, so until that level fails it looks to be major chart support for AAL stock.
Nicholas Santiago
InTheMoneyStocks