U.S. Steel $X Falls Hard On Earnings, Here Is The Target
Shares of U.S. Steel Corp. (X) fell sharply on Friday morning after releasing poor earnings and guidance. The hope of tariffs on steel fading causing investors and the company to lose hope in their lofty projections. U.S. Steel is down 14$ on the day at $32.50. This is a far cry from the $47.60 per share it hit March 2018 on those tariff hopes. With the drop today, U.S. Steel broke major support. This spells further downside. The first big support on the stock is not until $28.70. Once there, big players will begin to accumulate for a swing trade bounce back to $32.00.
Know This Trade Level For United Technologies Corp $UTX
United Technologies Corporation (NYSE:UTX) is engaged in providing high technology products and services to the building systems and aerospace industries around the world. This stock is leading component of the Dow Jones Industrial Average (DJIA). Traders should note that UTX stock topped out in late January at $139.24 a share. Since that high pivot, the stock has declined sharply lower. Today, UTX is trading down by 0.78 cents to $121.67 a share. It is important to note that UTX stock is now trading below its 50 and 200-day moving averages. This chart formation still signals further weakness to come in the stock. The next major support level for UTX will be around the $118.00 level. This is an area where the stock was defended and broke out in late November 2018. Often, the first retest of a breakout level will serve as excellent chart support. I will be keeping a close eye on UTX stock around the $118.00 level for a long side trade.
Shares of Micron Technology (MU) fell sharply again on Monday as the semiconductor sector struggled. Micron broke a major support level at $47.00. This breakdown signals another major leg lower to the daily 200 moving average at $42.25. This becomes the target buy price for a swing trade bounce. I still recall all the insane bullish average investors telling me I was insane when I was shorting at $62.00. Charts always tell the truth.
Tapestry Inc (NYSE:TPR), formerly known as Coach Inc, is a leading design house of luxury and lifestyle collections. The company's brands include Coach, Kate Spade, and Stuart Weitzman. Earlier today, the company reported earnings and the stock is plunging lower on the news. Yesterday, the stock closed at $53.77 a share ahead of the earnings announcement. Today. TPR stock is trading at $47.35 a share which is a 12.0 percent decline. Traders should note that the stock is now trading below it's important 50 and 100-day moving averages. This is a very negative sign for the equity and likely indicates lower prices ahead. Traders and investors must now watch the $42.00 area as the next major support level. This is where the stock broke out of a bearish base in December 2017. Very often, when a stock back tests a major break out level it will be excellent support again.
Shares of 3M (MMM) slumped again on Tuesday morning, down for the sixth straight day following poor earnings results. While most investors shy away from charts like this, the real pros get excited. After hitting a major gap fill at $192.00, the metrics on 3M scream oversold, technical bounce. This is coupled with a time count factor and pivot support. The triple threat combination signals a strong likelihood of a swing trade bounce back to $200 in the coming days/weeks, perhaps as high as $210.00.
China electric car maker Kandi Technologies Group Inc (KNDI) has a bullish chart setup and may be ready to run as high as $6.50. The current price is $4.88 after the stock has staged a slow consolidation pattern lower, following a major surge in September 2017. Just over the last few trading days, Kandi Technologies has started to prep for an upward move with a bullish triangle. The upswing should begin any day and be fast.
Yum Brands $YUM Don't Look So Yummy After Earnings, Know This Trade Level
This morning, leading restaurant stock, Yum Brands Inc (NYSE:YUM) reported earnings. Unfortunately, the stock is plunging lower by more than 5.0 percent to $81.79 a share. Traders should note that the stock is now trading sharply below the important 50-day moving. There will be some short term chart support around the $80.00 area which is around the 200-day moving average. The better support level will still be lower, likely around the $76.00 level. This area is where the stock was defended in February 2018 before surging to new highs. Very often, major pivots will serve as excellent support levels when retested. My best bet for a long side trade in YUM will be around the $76.00 level.
Shares Of Fred's, Inc. $FRED Likely To Bounce Hard Here
Shares of Fred's, Inc. (NASDAQ: FRED) continue to get ravaged as the company struggles to survive. Now at $1.85, the stock is basically priced for bankruptcy. However, that means there may be an upside surprise lurking. In the very least, the stock chart is signaling a technical bounce on the horizon off the $1.85 level. If you look at the chart, the stock has been in a steep downtrend for well over a year. However, every flush to a major trend-line (shown below in the chart) has yielded a big bounce. As of today, that same trend-line is being hit again. This ups the odds significantly of a strong bounce higher. I have a $2.40 target penciled in from this $1.85 level. That would be a sweet return in just days/weeks of 30%.
Measured Move Gives Exact Entry On Kraft Heinz $KHC
Shares of Kraft Heinz (KHC) continue to sell sharply ahead of earnings today. In 2018, Kraft Heinz has fallen from near $81 to its 52 week low today of $54.47. This whopping collapse is near completion based off a technical measured move calculation. It can be found by taking the high in 2017 to the mid-pivot of $75. That fall was $22.75. That dictates that to be a measured move and complete, Kraft Heinz has to fall a full $22.75 below the $75 level. This puts the target squarely at $52.25. In other words, Kraft Heinz is near a major pivot low and could see it in the next few days. This is likely the low of the year on the stock based on the measured move. It is a strong buy at the target.
Cardinal Health Inc $CAH Needs A Doctor, Watch This Level
Today, leading healthcare services and products company, Cardinal Health Inc (NYSE:CAH), is coming under heavy selling pressure after reporting earnings. The stock is trading lower by more than 18.0 percent to $52.73 a share. Traders and investors should note that the stock peaked out in late January when it traded as high as $75.75 a share. Since that pivot high, the stock has been steadily declining making lower highs on the charts. The next major support level for CAH stock will be around the $47.40 level. This is where the stock broke out in July 2013. Often, when a stock declines this sharply it will retest its former breakout level before really stabilizing and moving higher.
Cardinal Health Inc $CAH Key Level For Traders Revealed
Shares of Cardinal Health Inc (CAH) are being crushed today after the company reported poor earnings and guidance. Down almost 20%, investors are fleeing the name in panic. Whenever panic hits a stock, smart traders always head to the charts to find the key buy level. In the case of Cardinal Health, there is a major multi-factor PPT buy level at $46.90. Once there, investors should expect a strong bounce higher back over $50.00.
Last week, leading beer manufacturer, Molson Coors Brewing Co (NYSE:TAP) reported earnings that were worst than expected. The stock tumbled lower by 13.0 percent on May 2nd after the announcement. Traders should note that TAP stock is now trading sharply below its important 50 and 200-day moving averages. This formation puts the stock in a weak technical position and often signals further downside near term. The next major support level for TAP stock will be around the $51.00 area. This level is where the stock broke out in October 2013. Often, when a major break-out level from the past gets tested it will serve as major chart support. This is a trade level where I will be looking to go long on TAP stock.
This Pattern Signals $17.50 Target On General Electric $GE
Shares of General Electric (GE) are one of the best performing S&P stocks in the last two months. Up 22% in since April 2018 has investors cheering after the company beat earnings and put to rest any worry that they would cut the dividend. There may in fact be reason to cheer for more upside. The stock just broke the neckline of an inverse head and shoulder pattern. This is an extreme bullish signal for General Electric and has a calculated price target of $17.50 attached. While it may pause around this $15.00 level for a week or so, upside should resume quickly as the target could be achieved in June.
Fifth Third Bancorp $FITB Drops After Acquisition, Watch This Trade Level
Fifth Third Bancorp (NASDAQ:FITB) is a leading bank holding company throughout the Midwestern and Southeastern regions of the United States. Earlier today the firm announced that they would buy MB Financial Inc (NASDAQ:MBFI) for $4.7 billion in stock and cash. The news is causing MBFI stock to surge by more than 13.0 percent to $49.44 a share. Unfortunately, FITB stock is declining by more than 7.00 percent to $30.92 a share, this is type of weakness is very common for the company that is doing the buying. Traders and investors must now look at the charts for the next major support level on FITB. One level for the stock that stands out to me is around the $28.00 area. This is where the stock broke out in November 2017. Often, prior breakout level are excellent support when retested. I will be looking to buy FITB stock around this important trade level.
