Align Technology $ALGN Gets Slammed After Downgrade, Watch This Support Level
Align Technology Inc (NASDAQ-ALGN) designs, manufactures and markets a system of clear aligner therapy for the misalignment of teeth. Last night, the stock was downgraded by Morgan Stanley (NYSE:MS). Today, the stock price is declining sharply lower by 9.58 percent to $250.52 a share. Traders should note that the stock is now trading below the 50-day moving average. This puts the stock in a weak technical position and will usually signal further downside in the near term. The stock will still have very good daily chart support around the $238.50 level. This area is where the stock was defended at the start of April. Please understand, daily chart support levels are usually good for about 3 to 5 trading days.
Major Short Alert: Alcoa (AA) Tags Epic Trend Line
Shares of Alcoa (AA) jumped higher after reporting a solid beat on their quarterly earnings call. The stock jumped as high as $62.35. This was a dead short. In fact, I alerted to a short at $62.15 based on an epic trend line hit and multiple extreme overbought signals. The stock price itself is up from $44 in less than three weeks. That is a 50% move just going into earnings. What did investors think? It was going to run-up another 50%? This is the lunacy of average investors who listen to the blabbing media. Learn to read the charts. They clearly show Alcoa as a strong short with a downside price target within days of $57 and longer term, $50. Already, $2+ in the money in just hours.
Is The Chart Pattern In The iShares China Large-Cap ETF Signaling Lower Prices Ahead?
One of the most popular way for traders and investors to trade and track the Chinese stock market is to use the iShares China Large-Cap ETF (NYSEARCA:FXI). This ETF includes Chinese companies such as China Construction Bank Corp, Tencent Holdings LTD, China Mobile LTD, CNOOC LTD and many others. Currently, the daily and weekly patterns in the FXI have shown choppy sideways consolidation. This consolidation pattern that is forming comes after a sharp decline from a January 26, 2018 peak. This indicates that the next major move for the FXI will be lower. The next important support level will be around the $43.00 a level. This area is where the stock broke out in August 2017. Often, prior levels will be solid support when initially retested.
Procter & Gamble Co $PG Nearing Swing Trade Buy Support
Shares of Procter & Gamble Co (NYSE: PG) continue to fall lower after poor quarterly results. The stock is now nearing major support at $70.00 from a high of over $90 in early January 2018. This epic fall is overdone and due for a major technical bounce. There is a major support trend line that can be found by connecting the lows going back to 2011 (note the chart below). Big money is looking to accumulate in the $70 range for a trade back to $75-$80. Valuation is also extremely attractive at the $70 level. It is rare to get a blue chip company at such a steep discount to where it traded just a couple months ago.
Shares of Alcoa (AA) have been on a wild ride. In April 2018, the aluminum player surged almost 50% into earnings. After reporting solid quarterly numbers, Alcoa fell as profit taking took over. Today, the stock is falling 14% after news that a Russia producer of aluminum may be exempt from sanctions. The stock is in free-fall which is great for us as swing traders. I alerted to a major short last Thursday at $62.15. With the stock trading at $51.65 just two days later, I am now starting to scope out a buy level. The technical level of support to buy is $50.00. This will yield a major bounce. Swing trading is the only way to trade in this market. The whips in stocks make it the only way to generate huge returns.
Freeport McMoRan $FCX Plunges After Earnings, Know This Trade Level
Earlier today, leading copper and gold producer Freeport McMoRan Inc (NYSE:FCX) reported earnings. The stock is plunging lower by more than 9.0 percent to $17.03 a share. Trader and investors must note that FCX stock is now trading below its 50 and 200-day moving averages. This decline signals weakness on the charts and further downside is likely in the near term. While the stock will have some support around the daily chart 200-day moving average at $16.00 the better and stronger support is still lower. The next major support level for FCX will be around the $14.50 area. This is where FCX broke out in early December 2017. As you all know by now, prior break-out levels will serve as excellent chart support when initially retested.
Teradyne Inc $TER Gets Smoked After Earnings, Buy It Here...
Teradyne Inc (NYSE:TER) is leading manufacturer of test systems for the automotive industry, data communications, semiconductors, and complex electronic systems. Earlier today, the company reported earnings that are not being well received by the markets. TER stock is trading lower by 14.4 percent to $35.50 a share. The stock is now trading below its important 200-day moving average. This indicates chart weakness and likely further downside in the near term. Traders should now watch for short term daily chart support around the $32.35 level. This support area will be where the 100-week moving average is at. It also coincides with chart support from July 2017. Often, this combination will serve as a bounce level for the stock.
Major Support Tagged On Qualcomm $QCOM Ahead Of Earnings
Shares of Qualcomm Inc. (QCOM) continue to sink for the sixth straight day. However, today is different. Qualcomm is hitting major technical double bottom support on the daily chart at $49.00. The stock is down from near $69 just a couple months ago on buyout speculation. With earnings scheduled for after the close today, investors should be cautious, with a slight bullish edge. I personally like the chart here heading into earnings, even in this rocky market. The even number of $50 crossing plus a time count add to my bullish bias. I would not be shocked to see a bounce back to $53 on earnings today.
Travelers Companies Inc (NYSE:TRV) is a leading insurance holding company that covers property and casualty insurance to businesses, government units and individuals. Last week, TRV stock dropped sharply after reporting earnings. Today, the stock is trading down 0.18 to $128.14 a share. Currently, the stock is hovering just below its important 200-day moving average. This pattern formation is indicating further downside in the near term for the stock price. Traders should now watch the $128.00 area as the next major support level for the insurance giant. This support area is where the stock broke out in October 2017. Remember, often prior breakout levels will be major support when retested.
20% Rise Coming In Shares Of Universal Display Corporation
Shares of Universal Display Corporation (OLED) have fallen from $210in mid-January 2018 to below $90 today. That is an almost 60% drop in the stock price in four months. While most average investors would be too scared to buy here, smart investors use the stock charts. In fact, any entry below $90 is fantastic as the stock has finally retraced, filling a major gap and hit major pivot support. The multi-factor support level between $88-$90 is a gem of a level, signaling a surge in the stock price back to $108, a 20% move. This is a swing trade and likely to occur within weeks to a month. Great trade setups are what great trades look for and Universal Display Corporation certainly appears to be just that.
