Teva Pharmaceutical Industries (TEVA) Completes This Bullish Retrace
Shares of Teva Pharmaceutical Industries Ltd (NYSE:TEVA) ran from $15.00 to $20.00 in two days, just over a week ago. Since then, the stock has gradually pulled back. This price action is known as consolidation and an inside-bar bullish setup. The inside-bar bullish setup is almost complete with Teva Pharmaceutical Industries kissing the daily 20 moving average at $16.75. This is where it should begin to form some sort of base and begin its next leg up. I am very bullish on Teva Pharmaceutical Industries, especially after they landed a new CEO and saw some analyst upgrades. I believe the stock will see $25 by early 2018.
Sealed Air (NYSE:SEE) is a leader in the non-paper container and packaging sector. The company is engaged in food safety and security, facility hygiene and the product protection business. SEE stock has been steadily declining since April when it traded as high as $52.83 a share. Since that high pivot the stock has slid down to the $41.57 area where it is trading today. The stock is now trading below its important 50 and 200-day moving averages. This puts the stock in a very weak technical position on the charts. Currently, the stock is oversold in the short term, so short term bounces are possible. The better support level for SEE stock will be around the $36.00 level. This is an area where the stock broke out in 2014. Often, prior breakout area will be defended by the institutional money when back tested. Stay tuned as I will be looking to trade this on the long side around this major support level.
The leading electronics retailer Best Buy Inc(NYSE:BBY) has tumbled lower again after presenting lackluster guidance at its Investor Day conference. The reality is that the stock topped out on August 24th at $63.32 a share. Since that high pivot in the stock the shares have declined to $52.50 where it is trading today. According to some larger time frame charts this stock should not have major support until the $46.75 level. This tells us there could be more short term pain in the cards for BBY stock. Traders should note that the 446.75 level is where the stock broke out in March 2017. This level should serve as major support when retested.
Shares of Apple Inc. (NASDAQ:AAPL) fell sharply on Wednesday, as more and more analysts are questioning if the iPhone X is good enough to cause a super-cycle upgrade. Coming off all-time highs, expectations had been built into Apple Inc. of a massive upgrade cycle. This worry will continue as the latest iPhone is set to be delayed until early 2018. This means months of question marks. I expect Apple Inc. to continue its decline until it hits major support at $142.00. This $142 level represents a major trend line of support as well as the daily 200 moving average. The combination of these two support levels will create a strong bounce back to $150.00. I plan to profit on that move.
Is Lennar Corp(NYSE:LEN) Signaling Lower Prices For Home-builders?
Leading home-builder stock Lennar Corp(NYSE:LEN) has been steadily falling since June 20, 2017. At that time, the stock traded as high as $55.75 a share, since then LEN shares have declined to $50.32 a share. The stock is now trading below its 50-day moving average which puts it in a weak technical position. Should LEN stock trade and close below its 200-day moving average it would be very negative for the stock. Traders and investors will need to watch the $46.00 to $47.00 level as the next major support area for LEN stock. This will likely be a very attractive level for a bounce in the share price.
Today, leading credit card processing company Visa Inc(NYSE:V) is falling lower by $2.22 to $103.35 a share. The stock's 50-day moving average is now at $102.38, this level would be important support if Visa stock price tagged it today. The better support level for Visa Inc stock would be around the $100.00 area. This major chart level presents a nice whole round number and a gap fill support level from August 11th, 2017. This level should provide solid near term support when tested.
This Is Why Amazon (AMZN) Will Drop To $850/Shares Within Weeks
Shares of Amazon Inc. (NASDAQ:AMZN) continue to fall, now trading at $938 from an all-time high of $1,083.41. I am here to warn investors that the bottom is not even close to being in. Based on a head and shoulder bearish chart pattern, a calculated target for a bottom is not until it hits $845.00. The key for this next major leg down is when Amazon breaks $935 on a closing basis. Once that happens, Amazon starts a quick trek lower to $845.00. See the chart below for details.
F5 Networks Inc (NASDAQ:FFIV) Has Fallen And Can't Get Up
Many traders and investors are asking me if this is a good time to buy F5 Networks Inc (NASDAQ: FFIV). The simple answer is no! This stock has been declining since March when it traded as high as $149.50 a share. Today, FFIV stock is trading around $118.80 a share. Traders and investors should note that the stock has been forming a bearish consolidation pattern as it hovers along the weekly chart 200 period moving average. This chart formation will usually lead to lower price soon. Traders and investors that are looking to buy FFIV stock must now look at the $102.00 - $103.00 price area. This is where the institutional money defended the stock in March 2016 and will likely support it again when retested.
Consumer Staples Get Whacked, But Trade Levels Are Near
This morning, the leading consumer staples stocks are selling off sharply. Stocks such as Kimberly Clark Corp(NYSE:KMB), Procter & Gamble Co(NYSEG), Clorox Co(NYSE:CLX), and Colgate-Palmolive Company(NYSE:CL) remain under pressure since the opening bell. It should be noted that all of these stocks have struggled since late June. Many of these stocks are now nearing important support levels for a trade.
Kimberly Clark Corp(NYSE:KMB) is a leading consumer staple stock that is trading lower today. The stock has been selling off since June 26, 2017 when it traded as high as $134.29 a share. Since that pivot high the stock has plunged to $116.63 a share. Traders and investors should now watch the $115.00 level for major support. This is where the stock broke out in January 2017. Often, when a stock retests a break-out level it will serve as major support and be defended by the institutional money.
Gilead Sciences Inc (NASDAQ:GILD) Retreats, Watch This Trade Level
Today, leading biotechnology company Gilead Sciences Inc (NASDAQ:GILD) is trading lower by $2.24 to $81.62 a share. The stock is pulling back from an overbought condition on the charts. GILD stock put a recent high in the charts at $86.26 on September 8th. This tells me that the current decline in the stock should be just a minor fall. Traders and investors should watch the $75.50 - $76.00 level for major daily chart support. It should be noted that GILD stock broke out to the upside on August 30th around this area. This level should be a solid level for a bounce when it is retested.
Why I Alerted Investors To Buying Puts On The $XLE (Oil Stocks)
The Energy Select Sector SPDR (ETF)(NYSEARCA:XLE) is a strong short in my opinion. This comes from pure technical analysis. First, the $XLE hit the daily 200 moving average, after surging since mid-August from under $62.00 to a high today of $68.90. This is a monster move in a very short time frame. Next, oil is trading in the upper range around $52.00. Just weeks ago it was near $45.00 at the low end of the range. This range has been active for most of 2017 and continues to hold. Next, the $XLE is pulling back off the daily 200 moving average forming a topping tail. Topping tails are great reversal signals. Off these factors, I expect the price of the $XLE to fall to $66.00 - $66.50.
Netflix Inc (NASDAQ:NFLX) Fails At Double Top, Now What?
Netflix Inc (NASDAQ:NFLX) is a leading internet streaming content provider. The stock has been a major winner in 2017, but it failed to break out to new highs recently. NFLX stock topped out on July 21, 2017 at $191.50 a share. The stock price challenged that July top on September 2, 2017 but was rejected and has pulled back over the past few weeks. Currently, the stock is trading at $178.89 a share. The daily chart pattern is also very weak as it is a bear flag formation. This chart setup tells us that the stock could trade down to the $166.50 level on the daily chart before finding major chart support. Please remember, Netflix Inc will report earning on October 16, 2017 which is always difficult period to predict the direction of the stock.
MGM Resorts International (NYSE:MGM) Trade Level You Should Know
As you all know, leading casino stock MGM Resorts International(NYSE:MGM) has been under pressure since the horrific shooting in Las Vegas this past Sunday. MGM stock has declined steadily lower since September 7, 2017 when the stock traded as high as $34.65 a share. Traders and investors should note that the stock should have major daily and weekly chart support around the $28.50 area. This is a level where the stock broke out in April 2017. Often, when stocks retest their prior breakout levels they will be supported and defended by the institutional money.
Bullish Pattern Breakout Alert On QUALCOMM $QCOM...
Shares of QUALCOMM, Inc. (NASDAQ:QCOM) are on the verge of a major breakout. There is an inverse head and shoulder pattern in play. Price is right up against the neck-line, the breakout point. If price can push over $52.30, it should engage, sending the stock close to $57.00. See the stock chart below.
This Leading Waste Management Stock Is Getting Dumped
This morning, leading waste management company Republic Services, Inc(NYSE:RSG) is trading lower by more than 5.0 percent on the back of a downgrade. The stock tested its 200-day moving average at $62.50 and is holding so far. Unfortunately, the daily chart pattern is signaling further downside to come for the stock. Traders and investors will now need to watch the $59.00 level for major chart support. This level is where the RSG stock broke out in February 2017. Often, when stocks retest their break-out levels they will be defended by the institutional money. Keep the $59.00 level on the radar for RSG when it trades down there.
United Parcel Service (NYSE:UPS) Sinks After Amazon Invades Another Industry
Amazon.com, Inc.(NASDAQ:AMZN) has announced that they will start a delivery service to compete with United Parcel Service, Inc.(NYSE:UPS), and FedEx Corporation(NYSE:FDX). While this news has been tossed around for years it looks as if Amazon.com is really about to make the move in the package delivery business. Due to the upcoming holiday season there will certainly be more than enough packages for all of the companies in the shipping and delivery sector. This does not mean that stocks such as United Parcel Service, Inc.(NYSE:UPS) and FedEx Corporation(NYSE:FDX) won't see lower stock prices in the near term. At this time, the next major daily chart support level for UPS is going to be around the $113.50 area. This is a major retrace level that will often hold as support when initially tested. Traders and investors should remember that daily chart support levels are generally good for about three to five trading sessions.
Nasty Bear Flag Alert On $OLED: Here Is The Trade...
Shares of Universal Display Corporation (NASDAQ:OLED) have one of the tightest, nastiest bear flag formations I have seen. There are high odds of this stock taking a major leg lower in the coming weeks. The first target is $108 and the second target is $90. The key here is the recent news from just days ago that many Asian companies are over-producing OLED displays. Asia and specifically China have a history of overproducing things and dumping them on the overall market, killing margins. This has happened with commodities like steel as well as solar panels. If true, this will hurt Universal Display Corporation's margins in a major way. The bear flag on the stock chart likely confirms the stock is heading sharply lower in the coming weeks.
Will Walgreens & CVS Be The Next Victims Of The Amazon.com Invasion?
This past weekend every trader and investor are talking about Amazon.com moving into the drug and pharmacy business. Today, we see the two leading drug store stocks; Walgreens Boots Alliance Inc (NASDAQ:WBA) and CVS Health Corp (NYSE:CVS) drop lower on this news. It seems as if every business Amazon.com enters the leading stocks in that industry will feel its wrath. Earlier this year, many of the leading food and grocery related stocks declined sharply when Amazon.com announced that it was buying Whole Foods.
Walgreens Boots Alliance Inc (NASDAQ:WBA) has been declining sharply since September 12, 2017 when it traded as high as $82.89 a share. Today, WBA stock is trading lower by $2.49 to $70.70 a share. Traders and investors must now watch the $66.50 level as the next major support area. This level is where the stock broke out in December 2014. Often prior break-out levels will be supported when retested.
This Leading Cyber Security Stock Just Had A Failed Breakout
Traders and investors should note that the leading cyber security company Symantec Corp (NASDAQ:SYMC) just staged a failed breakout pattern on the charts. Recently, the stock tried to breakout above the $34.00 level on three separate occasions in September and early October only to fall below the $32.00 support area today. This pattern will usually be followed by more selling in the near term. Traders must now watch the 200-day moving average for short-term daily chart support. The better and stronger chart support area will be around the $27.50 level. This area was prior chart support in July and August 2017.
Leading medical device manufacturer Medtronic PLC (NYSE:MDT) has been under selling pressure since June 26th, 2017. At that time, the stock traded as high as $89.72 a share before topping out. Today, MDT stock is trading around $78.00 a share and should still have a bit more downside in the near term. Traders and investors should now watch the $74.50 level as the next major chart support area. This support level matches up nicely with the weekly 200 period moving average. It is also important to note that this area was where the stock was defended in January 2017.
G), Clorox Co(NYSE:CLX), and Colgate-Palmolive Company(NYSE:CL) remain under pressure since the opening bell. It should be noted that all of these stocks have struggled since late June. Many of these stocks are now nearing important support levels for a trade.
