July 23, 2018

Charts of Interest

Let’s recap a few charts we are watching.

First is the McClellan.  We highlighted that the McClellan reached Stage 1( below -80) levels on a closing basis and also posted an intraday chart showing we almost reached Stage 2 (-100).  Friday’s rally has already taken us out of Oversold levels but often with strong moves like this we see divergence on the indicator before a more substantial bottom is set.

TSLA – Could be taking out a long term down trend line.  TSLA is often noted as a electric car manufacturer but TSLA has also started providing their components to other car manufacturers who want their expertise when developing their own hybrid or electric lines.  I think this was a really strong management decision and one vehicle to note is the Rav4 which will be using TSLA technology.

PCLN – Has been consolidating after a gap higher due to earnings.  PCLN also announced the purchase of Kayak  which many note will provide PCLN much needed help with internet ranking, internet expertise and a better mobile platform which is important to an online booking firm.  The consolidation could last longer than expected and PCLN could also look to fill the earnings gap before moving higher but traders could use the recent lows as a reference point to trade against and if lost wait.

CEL – Israel’s largest mobile communications company, CEL has faced increased competition from new entrants and price wars but they still remain the best of breed and recently received a new contract from the military.  The turmoil in the Middle East could be a damper for this name but any outperformance in this environment will highlight the strength on the idea.

FSLR – Not a favorite idea but the technicals could provide a breakout with a MACD recycling around the zero line.  The uptrend line is a natural stop so the risk is limited.

RIMM – a beleaguered name but technically looks like a push to the 200 day SMA is likely and started to take out the long term down trend line Friday.

QCOM – like PCLN it gapped and has consolidated since earnings.  Many look at this name as the best way to play mobil growth without having to worry which provider or network wins.

DECK – Uggs for the holiday’s?  A very washed out name that has some positive technicals and a low to trade off.  Easy chart to follow.

SPLS – Another more washed out name with positive technicals and I really like the “locker” deal with AMZN as a potential catalyst to tab into online sales and also get people into the stores!  Initial target in the region highlighted and 200 Day SMA.

AMZN – This name has held the 200 Day SMA so far and provides an easy level to trade against.  I actually like this name more than AAPL since they both are oversold and will bounce with tech if it rallies but while AAPL is more oversold and better “value”, AMZN has a better technical tone.

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