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Shares of QUALCOMM, Inc. (NASDAQ:QCOM) took another sharp drop today after reporting earnings that were solid, but not amazing. In addition, the lawsuits are piling up which is clouding the future outlook. QUALCOMM is dropping over 5.5%, trading at $53.70. Investors would be wise to stay away from buying the chip maker until it hits major support at $50.00. This is when big traders and hedge fund investors have told me they will be accumulating. Based on the recent weakness, the stock may get there within days.
Investors analyze buy price the stock chart of QUALCOMM, Inc
Investors should be aware that Intuitive Surgical, Inc. (NASDAQ:ISRG) reports earnings Tuesday, January 24th, 2017, after the stock market closes. After studying the stock chart for some time, it looks like odds favor an earnings beat and upside move. This is seen by viewing the bull-like flag consolidation that is currently underway. It signals accumulation and digestion of the latest up move. The upside is pretty substantial with $720.00 as a target. The current price of Intuitive Surgical is $655.00. Earnings are expected to be $6.21 per shares on revenue of $738 million. Please be aware, IF I decide to take the risk and play this trade, I will most likely limit my risk by grabbing a few call options.
Investors expect bullish earnings from Intuitive Surgical
The stock market saw some early selling today, but was able to shrug it off and float back towards the flat line. The reason why the market was able to avoid a large collapse was due to a trend line connecting the lows of December 1st, 2016 to December 30th, 2016. This can be seen in the chart below. Today's lows tagged that tend line perfectly. Investors should simply follow this trend line. As long as the market remains above the line, stay bullish. If the stock market breaks below the trend line, quickly sell all longs and be very bearish.
Stock market investors and traders analyze the S&P 500 chart
There is a quick trade setup next week where investors and traders can make a fast score. It involves Macy's Inc (NYSE:M) and triggers upon a break above the $30 level. On the stock chart, you can clearly see that the $30 level was significant. If was the start of a recent collapse on Macy's Inc stock. Therefore, if buyers are able to crack that level, it will trigger buy programs and short covering, shooting it higher for a day or two. Again, it is so important that investors understand when this setup is an actual actionable trade. ONLY when it cracks $30 to the upside do you buy. As long as it stays below $30, you avoid it. The upside on this trade is $32 and will likely be achieved within days of the $30 break. On the other side, if it breaks above $30 and closes the day back below $30, exit immediately. This keeps the risk extremely small while giving great upside potential. Enjoy this setup going into the weekend. Get my live trades, verified entries, stops and targets by opting-into live on Verified Investing. Have a great weekend.
There is a classic bear wedge development on the stock chart of Caterpillar Inc. (NYSE:CAT). Upon breaking the support line of $92.50, Caterpillar will fall quickly to $84.75. You can see the wedge in the stock chart below. The target level of $84.75 is a gap fill. This will be a major support and probably a solid buy level. Stay tuned and opt-into my live trades to get my exact entries, stops and targets. Opting into my trades is free, you only reward me with a few Dollars IF I give you big winning trade information. Verified Investing is the future.
The S&P 500 ETF SPY continues to hold major support. Today, we dipped again sharply but investors are seeing a buy program helping the market get back above a major support trend line. As long as this trend line holds, investors should maintain a positive view with more upside expected. Should the stock market (SPY) close below the line? All bets are off and there could be a large corrective move. Note the chart below.
Investors and traders analyze the stock chart of the S&P 500
Target Corporation (NYSE:TGT) took another beating today, falling over 5% after the company updated its fourth quarter guidance. Retail sales fell short and investors continue to run from every brick and mortar retailer. Many retailers like J.C. Penney (JCP), Macy's (M) and Sears Holdings (SHLD) are down over 30% in recent months. The sector is starting to look like a dead man walking or zombie. There is constant chatter about "real estate value', meaning investors are trying to justify the retailer valuation based on what their land is worth, essentially saying the retail brand has no value. This panic is getting overdone. While yes, more shoppers are shopping online, stores during Christmas were still packed. If anything, this massive sell gives investors like me a great opportunity to accumulate good companies on the cheap. In regards to Target Corporation, there is a major double bottom support level coming up at $66.00. I plan on picking some up there for a hard, strong bounce. I will be looking for a 5-10% bounce.
Shares of Target Corp fall on weak fourth quarter guidance
Investors can be on the lookup for a simple short trade on QUALCOMM, Inc. (NASDAQ:QCOM). On any stock price close below the up-sloping trend line ($65.25), pull the trigger and go short. The stock should fall within days to the target of $56.00. That is a potential gain of 15%. Stop out for a tiny loss on any close above $66.50. Please make sure you follow the rule. I repeat, you do not short the stock until it breaks major support at $65.25.
It is pretty crazy to think a stock chart can predict an event but the biotechnology ETF $IBB looks to have done just that. Yesterday, the ETF that tracks biotechnology and pharma stocks slammed into a trend line that is found by connecting the recent highs (see the chart below). Any technical trader will tell you that a sharp pull back should occur. Out walked Donald Trump today to give his press conference. One of the first things he did is trash biotech/pharma stocks over drug prices. The $IBB (biotech ETF) collapsed.
The stock chart here predicted the price action perfectly. However, most investors ignore the stock charts and trade off of CNBC and other media hype. Start watching the stock charts and become a better trader.
The biotech ETF stock chart predicted the Donald Trump slam
The stock chart of Kandi Technologies Group Inc (NASDAQ:KNDI) is extremely bullish. Anytime investors see a sharp move up, followed by choppy sideways action, it is a positive sign. Kandi Technologies has this beautiful setup and will likely head higher in the coming days. In addition, there is a trend line break that can be watched for a trigger. Note the down-sloping trend line that makes up the top of the triangle. When Kandi Technologies breaks above that line, the buyers will sweep in and the stock will surge. The upside is $8.00 from a current price of $5.26.
Shares of GoPro Inc (NASDAQ:GPRO) continue to languish near their all-time lows even with the stock market near all-time highs. While investors who have been holding the stock for months remain in pain, new buyers may be about to see a massive short squeeze. The stock is showing signs of large investor accumulation over the last week. Draw your attentiont to last week when the stock popped up through the daily 20 moving average, jumping from $8.65 to $9.50. This can be seen on the stock chart below. Then, note how the stock slowly came back to earth, but held the $9.00 level as well as stayed above the daily 20 moving average. In other words, there is a change going on here. It appears GoPro Inc no longer has enough sellers to hammer it down to its lows. The fact that it is holding above the 20 moving average is a sign of accumulation and leaves it wide open for a big players to run it hard, causing a short squeeze. I continue to hold GoPro Inc in my Verified Investing portfolio from a verified entry of $9.02. I expect this to surge as high as $12 in the near-term.
This trade is simple. When the stock price of QUALCOMM, Inc. (NASDAQ:QCOM) breaks below the trend line sloping up (seen in the stock chart below), short it. QUALCOMM will head to the $56 level target gap fill. Classic stock chart setup here for experienced investors and traders. Simple and clean, trades like this are great.
Shares of Facebook Inc (NASDAQ:FB) are surging higher today as buyers swoop in and buy quality tech stocks. As it blasts higher, investors are wondering two things. First, for those who bought the stock, how high is it going? Second, for those that are looking to short the stock and profit, where is the high reward, low risk level.
The stock likely has more upside into next week. The strong move over the last few days will not end quietly. The first resistance will be at a technical chart level known as gap window. This is at a price point of $124.00. While it may pause there, it likely goes higher to a final target of $127.15. This final target is a mega resistance level which happens to be the price of the stock just before Facebook Inc announced their earnings report in October 2016. The stock opened the next day sharply lower. This is where I will be looking to short the stock because it is such huge resistance. In addition, the problems at Facebook Inc are not going away. Big companies are moving away from targeted ads because they just do not work anymore. This caused the collapse last earnings and will likely be a hardship this earnings period. For investors and traders looking to short the stock, do so if Facebook reaches $127.15. The pull back will be to a target of $116.00.
Travelers Companies Inc (NYSE:TRV) is finally having a corrective move. The stock had an amazing move from $103.50 to $123.00 between November and December 2016. In Travelers' history, this percentage move in such a short time is unparalleled. As impressive a move as that was, the stock is now correcting sharply lower. As the stock collapses, smart investors are looking for the perfect entry price. The buy level that stands out is found by simply looking at the daily moving averages. The 50 and 200 moving averages are together at a price of $114.75. In addition, the Fibonacci 38.2% retrace is right above that. This gives the best investors and traders in the world a solid entry range of $115.00. I will be looking to buy here.
Investors may want to take a look at the stock price of GoPro Inc (NASDAQ:GPRO) today. It appears to be breaking out of a downtrend and could likely squeeze sharply higher in the coming days. At a current price of $9.07, it is peaking above the white trend line shown below in the chart. Assuming it closes above the white trend line (anything over $9.05), it will be a breakout. Over the next week or two, a likely short squeeze will take it to a $12 target. This trade setup is great for investors who want to be in and out quickly. Exit the trade if it ever closes the day below $8.50. This gives a great risk versus reward setup with 30%+ upside potential and only 6% downside risk.
Shares of VMware, Inc. (NYSE:VMW) have broken a major support trend line that stretches back to July 2016. This break is a warning signal to investors that heavy downside is coming in the next few months. Aggressive traders and investors can even short the stock or buy puts. VMware, Inc. should begin its heavy decline within a week and continue to a first target of $73.25 and a second target of $62.50. The current price is $78.88.
Shares of Paychex, Inc. (NASDAQ:PAYX) hit stock chart double top resistance at $61.85. This alerts investors to a probable pull back in the stock price, with a target of $55.00.
Shares of Tesla Motors Inc (NASDAQ:TSLA) are hammering on a major breakout trend line. This can easily be seen in the stock chart below. Should this trend line get broken to the upside, Tesla Motors seriously has upside to the $240 level. The key here is to watch for a daily stock price close above the trend line shown in the stock chart below. If that happens? BOOM! The way I see it, any stock price close above $200 does it.