Resistance Analysis in Bottoming Stocks: IDXX, OKTAResistance Analysis in Bottoming Stocks: Looking Ahead to Q1 2023 Earnings
Stocks that are slowly crawling their way out of the correction of 2022 are now moving up to challenge the more difficult resistance levels from the intermediate-term downtrend. These resistance levels are sideways trends that developed during the downtrend of 2022 to the bottom low.
Most stocks that are showing improvement quarter over quarter have completed bottoms, such as IDXX.
Those that do not, such as OKTA, are often stocks that had anomalies in their revenue/earnings growth during the pandemic due to stimulus checks artificially inflating their sales to the point there was no possible way that the company could maintain such high revenues that were way off the normal growth levels annually.
IDXX has been trending up out of a bottom with sideways trends 2 times now. This is best seen on a weekly or 4 day chart. The stock has not reached the next strong resistance level yet but is probably going there during the next month as it reports in early May. If it continues sideways during the month of April, then the report is not likely to show a significant improvement over the financial data from last quarter.
The All-Time High will be Very Strong Resistance as it occurred at the peak of the pandemic's speculative gains.
The Moderate Resistance is one tier down from the top's all-time high. It can be more easily overcome as it is not a longer sideways trend and there was no sideways trend at that level on the way up to the top in the final months of 2021.
The Strong Resistance lowest red line is stronger because of the sideways trend from 2020 - 2021 and the sideways trend during the 2022 downtrend.
OKTA has an entirely different trend moving upward. The stock has not completed the bottom and first resistance level to complete the bottom is Very Strong Resistance. The next tier up is Moderate Resistance. The next Very Strong Resistance is the rounding top highs of 2021.
Earningsanalysis
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CRM Setting Up for Earnings Next WeekCRM reports earnings next week. This was a pre-earnings run that settled into an unstable sideways trend and then went down due to a lack of strong retail buying.
Volume is exceedingly low to the downside. This is not a sell short setup. Buy zone support is too close from the bottom formation.
NVDA had a similar pattern and gapped up on its earnings release news.
Truworths crashing after results and new target in play Truworths has formed an M Formation over the last few weeks.
The price broke below the neckline and now it looks like the next target is in play.
21=7 - Changing
Price >200 - Bullish
RSI <50 Bearish
Mixed view with bearish bias.
Also it seems that the market is not appreciating the Truworths $JSETRU 1H 2023 results.
Revenue R11.73 billion, +14% y/y
Net income R1.88 billion, +6.1% y/y
Adjusted EPS R4.874 vs R4.438 y/y
Gross margin 53.5% vs. 53.6% y/y
Interim dividend per share R3.20
I'm bearish right now but with the mixed signals anything can change.
ROKU Earnings: Not Bad But Not GreatROKU has an incomplete bottom ahead of its earnings report later this week. The technical patterns don't indicate a bad report, just not a great one.
There is some accumulation and a shift of sentiment around the lows of the bottom formation, which are likely to provide support. It is unlikely that this stock would drop further than the Dark Pool Buy Zone unless it has a bad report.
The company has struggled with Market Saturation for a while. Some strategic partnerships recently and in the future may be what the stock needs to stabilize here to eventually begin the next uptrend.
Weekly chart showing strong long-term support for the current bottom formation:
DIS Disney Options Ahead of EarningsLooking at theDIS Disney options chain ahead of earnings , I would buy the $115 strike price Calls with
2023-3-17 expiration date for about
$4.05 premium.
If the options turn out to be profitable Before the earnings release, I would sell at least 50%.
Looking forward to read your opinion about it.
Reversal or Bull trend continuationFrom the Daily chart, we could see Tesla's stock price fixed in a descending channel, bumping off from the descending channel's support and resistance. Its price is advancing towards the channel's resistance and a weekly probable resistance (supply) Zone; this means two main zones could restrain more surges in Tesla's stock price. Tesla's price appreciated after its earnings announcement on Wednesday.
GE: Strength Ahead of Earnings ReportThis old company struggled to reinvent after the banking debacle destroyed its consumer financing division. Older companies CAN reinvent and start a new life.
I'm showing the Weekly Chart first so you can see the support zone below and the strong resistance above, where the stock may head sideways for a time.
Around $67 is the high of a completed short-term bottom that provides strong support for the current price action.
The stock entered the strong resistance level of the Trading Range highs of 2021 - 2022 with what I call a "pre-earnings" run.
On the daily chart:
GE had a strong momentum run ahead of its earnings report. This was a pre-earnings run, which tend to develop 2-4 weeks ahead of the earnings release. The company is reporting Tuesday this week.
The strong reversal candle on Friday after 2 down days is also an indication that the report will be good.
SPX (S&P500 Index) - Potential Breakout Before Earnings 01/2023 The SPX (S&P500 Index) price is attempting to breakout above $4000, as earning season kicks off on 1/17/2023.
Bullish scenario: Inverse Head-and-Shoulder price pattern breaks out above $4000 resistance neckline zone. Resistance targets would then be $4085, $4300, $4600.
Bearish scenario: Double-top price pattern rejects price and drops back down to $3900, $3800, $3600. The bottom of the yellow descending wedge trendlines could be an area of support.
Note: be aware of any corporate earnings, breaking/global/fundamental news that could override technical chart setups. Fibonacci retracement levels were selected from 3/2020 to 1/2022.
What happened to Amazon today?Today, after the market closed, Amazon released its Q3 earnings and revenue, as well as other financials. It outperformed earnings per share by a significant margin, so why did Amazon drop 14% in after-hours trading? Well, the answer lies in a few things which I will cover today.
1. Amazon Web Services (Includes cloud computing, a major component of Amazon's revenue) only brought in 20.5 Bil, compared to forecast of 21 BIl.
2. Due to the above reason, Amazon's revenue was lower than expectations of 127.63 Bil, only achieving 127.1 Bil, with much, much slower growth compared to the previous quarterly earnings and revenue.
3. Amazons sluggish growth in revenue can only mean one thing -- A weaking Consumer. And as the Fed hikes interest rates quickly, Amazon's revenue may go down along with inflation.
4. Guidance from Amazon shows a weak Holiday quarter (weak sales and revenue)
So, this is just an update on the latest news to keep you updated. If you want me to continue this type of posts, please comment!
SPY to New LowsMarket Makers are selling off large caps and shifting funds into Indexes in order to hold the market up for a complete exit on large caps since they'll be hit the hardest by a crash event and another rate hike. Apple earnings are today after hours, and appear to be the last decider for this earnings weak, amazon and apple both hold the largest weight for SPY. Meta down, Microsoft down, Tesla down, Google down, Apple & Amazon are Spy's last hope, and based on not going against the trend, I'd assume these two giants do like Meta, Google, Microsoft, & Tesla. Slight chance this gets manipulated since apple is the largest holding of a lot of investors but I believe they must be exiting apple shares while pumping the indexes to maximize the exit position.
GDP was higher than expected, which can add fuel to the fire of another rate hike that can tank the market further down, US Dollar needs to go up from here, very overextended to be honest, and could lead to a ripple effect, a huge parabolic sell off.
UAL: Flying higher?United Airlines Holdings
Intraday - We look to Buy at 39.70 (stop at 36.45)
This stock has recently been in the news headlines. Our outlook is bullish. Trading within the Wedge formation. The bias is to break to the upside. A break of resistance at 40.00 should lead to a more aggressive move higher towards 49.00.
Our profit targets will be 48.57 and 52.00
Resistance: 48.60 / 61.00 / 81.00
Support: 37.00 / 31.00 / 20.00
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’) . Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
2 earning reports to watch October 2022It’s that time of year again; earning session for US stocks. With so many other variables contributing to volatility in the US markets (e.g., inflation, Fed rate hikes, recession, oil prices, quantitative easing), anything out of the ordinary can result in huge moves in stock prices. This has already been witnessed in an early report from Nike (NYSE: NKE) last week, where it missed on some metrics and was punished with a -12.8% fall in its stock price.
So, with this in mind, here are two earning reports to watch this October.
Advanced Micro Devices (NASDAQ: AMD)
AMD updates the market with its earnings on Tuesday October 25, alongside some of the other major companies on the NASDAQ, including Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOG).
AMD shares fell +23% in September, partly impacted by the weak report from sector compatriot Micron Technology (NASDAQ: MU). It is the weak demand outlook that Micron painted for personal-computer products that makes AMD’s upcoming announcement one to watch.
Similarly, Taiwan Semiconductor (NYSE: TSM) is reporting on October 13, which could serve as another barometer for the industry before AMD delivers its report.
Netflix (NASDAQ: NFLX)
It may be a make or break earnings report for Netflix on Tuesday 18 October.
Netflix shares climbed +8.4% over September, and over +30% since its last market update in June, where it reported a loss of almost 1 million subscribers. In fact, Netflix was one of the top S&P 500 performers last month, where the broader market index fell by -8.0%.
In the upcoming announcement, investors will be looking out for more details concerning the company’s plan to diversify its revenue base with ad-tier subscription and its heretofore mild penetration into the gaming space.
Some surveys point to almost half of Netflix’s subscribers considering a switch to the company’s ad-tier plans, which would mean that Netflix would have to fill that subscriber revenue gap by selling $5.4 billion worth of ad space.
FDX: Overreaction?FedEx Corporation
Short Term - We look to Buy at 161.03 (stop at 148.79)
The company gave a bleak outlook for profits and plunged in the premarket by 20% .We are trading at oversold extremes. A move lower faces tough support and we remain cautious on downside potential. We therefore, prefer to fade into the dip with a tight stop in anticipation of a move back higher. A higher correction is expected.
Our profit targets will be 206.12 and 215.00
Resistance: 200.00 / 240.00 / 320.00
Support: 160.00 / 130.00 / 100.00
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
WMT bigger pictureLooks like a typical cup and handle right now. The EA was good, even with this high inflation. If we consider this was really the peak of inflation, the consume will recover then if not we could see another down turn for the retail sector. But even though with high inflation WMT positioned itself in a very good state.
(For example, reducing supplier costs to keep the products as cheap as possible, also they develope the own internet platfomr even more.)
I see a possibility to see the $150+ level again
$SE 1D BUY SETUP FOR +70% MOVE!Sea Limited is good stock if you are thinking about adding a digital gaming, software and cloud communication/network stock to your watchlist/portfolio. It is currently showing a possible sign of retracing to$120 area, but I think it will report good earnings and have a positive move up from the news. It is also coming out of a contraction which always means a big move is coming!
$TGT (TARGET) POSSIBLE +20% GAP FILL!$TGT has earnings coming up and a huge +20% gap to fill, which would be a +$35 move for this week to come or even leading into next week! Price has broken resistance and is making a bullish move to the upside to fill that gap it seems! Patience is key! wait for confirmations & ride the trend!