Equity
Stocks Recovered Fast!!Stocks retraced quite a bit to 4421, a new technical level under 4431. The selloff came yesterday after renewed Coronavirus panic swept in after New Zealand entered lockdowns. This was swiftly bought back midday and we've retraced about 50% of the selloff. Currently, we're finding support at 4440. The Kovach OBV is still pretty strong, suggesting that the correction was paltry with respect to the overall bull momentum. Watch for the S&P to test 4462 again. Our next profit target remains 4487.
Stocks Make New Highs!!Stocks saw a selloff yesterday morning but quickly found support, at 4440, which we have identified as a new technical level. This is just above 4431, where we thought we'd see support. After finding support here, we immediately caught a bid sending us smashing through our profit target at 4462, and falling just short of our next target at 4487. We are seeing a red triangle on the KRI at the high, confirming steep resistance, but getting support at 4462 again. We should be able to establish value here at higher levels between 4440, 4462 and 4487.
Stocks Meet ResistanceStocks have reached our profit target at 4462, and seem to be stalling there. We will see if the Biden administration's epic, incendiary failure in Afghanistan will have an impact in the S&P closer to the open. For now, it looks like it will establish value between 4431 and 4462. The Kovach OBV is strong but has leveled off suggesting that stocks may be taking a breather before another rally. We are seeing not one but four red triangles on the KRI which suggests that we are facing stiff resistance at 4462.
Stocks Hit Our Profit Target!! 🥳Stocks have finally hit our profit target at 4462. This was a long time in the making and we've identified this as a profit target last month. The path to get there certainly was not quick, as the S&P has gradually drifted to this target, in contrast to the emphatic breakout we expected. We should see some resistance at this level, so some ranging is anticipated. From below, 4431 will provide support. The Kovach OBV is still very bullish so the run could still have legs.
Stocks Drifting 🐌Stocks have drifted up above our level at 4431. We were anticipating more of a bull wedge breakout, but the momentum we've received has been paltry. We are currently in the middle of the vacuum zone between 4431 and our target at 4462. The Kovach OBV has tapered, but is still bullish. We anticipate the drift to continue until we hit our target. After that, we anticipate a retracement, which could take us back to 4408, 4389, or 4380.
08/13 Watchlist Hey everyone SamC here, we are going to start posting some set ups for the following trading day of a couple names we are watching. Feel free to ask questions in the comments and give us a follow.
Happy Friday the 13th!
Stocks Continue to Range 🥱We are still waiting for our breakout in stocks. All week, the S&P has been holding an extremely narrow range, and drifting up past our level at 4432. We are seeing a slow but steady drift, and volatility has consolidated immensely. We are due for a breakout either way. Our profit target from above is 4462. From below, 4408, 4389, and 4380 should provide support. The Kovach OBV was once quite strong, even with the consolidation, but appears to be tapering which makes us question if we may see a correction first before hitting our next profit target.
Bull Flag in Stocks!!Stocks are forming a bull flag at 4432, which appears to be a point of control for the S&P. There is a bull divergence in the Kovach OBV suggesting we may finally see the breakout we have been anticipating for the past few trading days. Stocks are holding a very narrow range, which suggests a breakout is near either way. If we are wrong and stocks break down, then we will have support from 4380, 4364, and 4350.
Breakout for Stocks??Stocks keep encroaching on the upper bound of the range at 4431. We are observing a clear tendency toward higher levels but an inability to definitively break out from them. We do appear to be witnessing a bull wedge pattern, with a bull divergence in the Kovach OBV, suggesting we are mounting up pressure for a breakout to 4462. If we fail to breakout, we will likely see a breakdown to the lower bound of the range stocks were holding since July at 4380.
Bull Wedge Breakout for Stocks??Stocks are showing a clear affinity for the upper bound of the range, at 4431. We are seeing a bull wedge pattern with higher lows contributing to a consolidation of volatility. Additionally, the Kovach OBV is picking up, suggesting a bull divergence. We feel a breakout is imminent and the next target is 4462. If we are wrong, watch for support at the lower bound of the range at 4380.
Bull Wedge in Stocks!!Stocks remain range bound by 4431, but it looks like we are forming a bull wedge with the upper bound just south of this level. Levels from below have been holding for over a week now at 4380, and we are currently seeing higher lows, and consolidating volatility. Price action seems to be consolidating around 4408, which appears to be a POC. The Kovach OBV is flat for the moment. Ideally, we would have a bull divergence here to anticipate a breakout. If we are able to break out from 4431, then 4462 is our next target. If not 4380 should continue to provide support.
What is equity ?What Is Equity ?
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In stock market parlance, equity and stocks are often used interchangeably. Stocks and equity are same, as both represent the ownership in an entity (company) and are traded on the stock exchanges. Equity by definition means ownership of assets after the debt is paid off. Stock generally refers to traded equity.
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Breakout in Stocks??Stocks are continuing to range. They have held the range between 4380 and 4431 for over a week. As we mentioned yesterday, the S&P 500 found support at the lower bound and has tended back to the upper bound, sitting just a few ticks below the upper bound at 4431. We will see today if stocks can finally muster the strength to break this level and acheive new highs again, or if they will continue to range. If we are able to break the range today, then 4462 is the next target. If we break down we will have further support from 4364 and 4350.
Stocks Continue to RangeStocks are continuing to range in their sideways corrective pattern. The S&P has been holding the range between 4380 and 4431 for over a week now. We rejected the upper bound yesterday, as we anticipated, which would have made for a nice mean reversion trade. Indeed, the S&P retraced the entire range, finding support at the lower bound. It is currently testing 4408, so watch for momentum at open to determine if we can test 4431 again. If so, the next target is 4462. If not, we should find support again at 4380, 4364, or 4350.
Stocks Ready to Break Out??Stocks have gained strength and are currently hugging highs. We seem to be facing some resistance just under our level at 4431. We have been seeing a sideways corrective pattern for over a week, so perhaps it is time for stocks to make another move. Watch for support at 4408 and 4389 if we reject current levels. Our next target remains 4462 if we are able to break out. Watch for momentum at the open for confirmation.
Amazon (AMZN) Analysis "Long-Term"Amazon NASDAQ:AMZN
This profitable beast has been on fire for YEARS. Will the business be around in 5+ years? Absolutely. Amazon will continue to dominate.
Shares took a hit after an earning disappointment (Don't let the COVID new cloud your thinking) and also they were also hit by a record $887M EU Privacy fine.
The stock isn't going to "Tank" - as you can visually see, it's falling back into the range it's been in for the last 365 days.
Shorting the stock would be a gamble (Long-term). Technically speaking there hasn't even been a lower high created - It's coming fresh off recent highs.
It's range has been between: $3,000.00 and $3,600.00 (Some action happens around $3,400.00)
The move here would be to play the range with a long-term mindset; which can be hedged with options. Seek buying opportunities while watching if that lower high forms. The $3,000.00 area line up with the 23%; which would be the next play. Further down there's major confluence on the 50% retracement ($2,600.00) with certain indicators lining up along with price action. A move that far down would be insane; but anything can happen.
Strong buying areas are between: $2,800.00 - $3,000.00 (Previous Range)
DCA Investment into the $2,600.00 Area (50.00% Retracement)
Stocks Trade SidewaysStocks rallied yesterday hitting our profit target to the tick before retracing back to the bottom of the range. The S&P seems to be in a sideways corrective pattern at the moment, finding good support at the bottom of the range at 4380. The Kovach OBV has dropped notably, so we will see at open if we have enough steam to hold the range. If so, expect a retracement at least to the mean at 4408 or so. Otherwise we will find support at 4364 and 4350. Our next profit target is 4462, which is garnered from the Fibonacci extension level of Fibonacci retracement levels anchored at the current range
Breakout for Stocks??The S&P 500 continues to range in a sideways corrective pattern. After its recovery from the dip and making new highs, this is a perfectly reasonable behavior and suggests that stocks may be gearing up for another breakout. We have held a very narrow range between 4389 and 4410. The more constrained the volatility in stocks, the more likely we are to see a breakout and today may be the day. Our next target is 4431. If we fail to breakout or continue the range, then 4380 or 4364 will provide support.
$VALE Bullish looking chart$23 is the level to break for a much higher target. $26 & $29 targets possible for the patient. Stick to a stop loss.
Stocks Due for a Breakout??After making new highs, stocks are trading sideways, which was our prediction from before. After recovering from renewed Coronavirus panic, the S&P had a V-shaped recovery and made all those losses back and then some, making new highs. It is reasonable for stocks to range or retrace after such a move. We should continue to see support from 4389 and 4380 but if not 4364 or 4350 should hold. Our next target is 4431. The Kovach OBV has dropped precipitously, suggesting that we will at least see more ranging at these levels before another burst of momentum.
Seasonal weakness in transportation The descending triangle could be confirmed. After the breakout on the downside, a bearish trend continuation could be established. For this, however, the current trading range would have to be exited to the downside. A breakout would activate a new price target at around $80.33. In the past 15 years the stock tends to be bearish between end Jul till end of Aug. last 9 of 15yr have been bearish.
Stocks Make New Highs!! What's Next??Stocks have broken out again to make new highs. We have fallen just short of our profit target of 4431. We have a cluster of red triangles on the KRI, indicating that the S&P is running into some resistance. We will see if it gets another burst of momentum at today's open or if we are due for a retracement. Such a retracement could take us back to support at 4389, or 4364. After making new highs it is reasonable for stocks to come up for air, unless we catch another bid at open. The Kovach OBV is strong but appears to be leveling off.
