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EBay Holds Key LevelEBay was one of the surprise breakouts of early 2020. The online-auction and e-commerce stock ripped to new 52-week highs in May and kept flying on raised guidance in June. The strong numbers kept coming in July and October, but the stock just drifted and then slid lower. The pullback landed EBAY back at a key level around $47, the old record peak from 2018. It gapped through that price area in June and bounced near it in mid-September. It’s also close to the 200-day simple moving average (SMA). Speaking of the 200-day SMA, prices tested below on November 10. They quickly snapped back and formed a hammer candlestick, which may suggest the shorter-term decline has ended. Given its strong results and turnaround, longer-term trend followers may look for EBAY to continue higher into yearend. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NASDAQ:EBAYLong
by TradeStation
Apple Could Be Attempting a BreakoutRecent sessions have seen shift toward cyclical stocks and value names like energy and financials. This follows hopes of Pfizer’s coronavirus vaccine restoring things to normal. The key word, of course, is hope . Even if the vaccine works, we don’t know how quickly the economy may return to its previous pace. But for a tech stock like Apple there are things we know . We know the new iPhones are getting orders. (Just look at Qualcomm’s numbers.) We know Tim Cook just unveiled some powerful new Macs with in-house semiconductors. And we know that Big Tech has been the backbone of this market all year. We also know that AAPL has gone nowhere for almost three months. (Its current price is comparable with August 20-21.) This chart shows a falling trendline along the peaks of September 2 and October 13. AAPL’s been fighting it since November 5 and is trying to break it today. The stock has also pressed into a tight range, seen here in the Bollinger Band squeeze. Third, in addition to the trendline, AAPL is fighting back above its 50-day simple moving average (SMA), plus its 8- and 21-day exponentials (EMAs). Finally, MACD has turned positive again. Is the longer-term bull trend in big-cap tech going to return? We’re not sure. But if any stock is going to tell us, it will probably be AAPL. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NASDAQ:AAPL
by TradeStation
My fans have asked and I am responding: semiconductors at limitSomeone asked me about semi-conductors recently because they had (apparently) gone exponential. Well, not quite. I think in response to the election news the past few sessions had been good but going back you can see that its been trading in a fairly predictable range. I can't comfortably call this exponential until it breaks above the overhead resistance and we all know what needs (*ahem) for that to happen (and given the recounts necessary in Georgia and Wisconsin, although Biden will be declared victor the markets will not like the lack of finality and the inevitable road blocks that will be put up by Trump). The other interesting thing is that SOXL is in a very wide long ascending triangle which more often than not tends to break down. More adventurous people could put a small short play into place.
AMEX:SOXLShort
by DanjaZown
1
Is Micron Finally Ready to Move?On Tuesday, we cited the pullback in the Philadelphia Semiconductor Index. Today, we’re looking at a member stock that’s been dead in the water all year: Micron Technologies. Worries about the Covid recession have dragged on the memory-chip maker, despite strong results. Analysts at Deutsche Bank and Citi also think pricing will improve over the winter. MU’s chart has some potential positives for the bulls. First is the falling trendline between the February and July highs. It broke that line three weeks ago and is now revisiting it as support. (Similar to the iShares Trust China Large-Cap ETF pattern on Monday.) Second, MU’s 50-day simple moving average (SMA) just rose above its 200-day SMA: a “golden cross.” There are also potential fundamental tailwinds given the strong industrial data this week from the U.S. and China, plus the upcoming iPhone 12 ramp. Traders may want to keep an eye on MU for a potential breakout. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NASDAQ:MU
by TradeStation
2
Chips Bouncing at the 50-day SMASemiconductors are behaving more bullishly than the rest of the technology sector. First, the Philadelphia Semiconductor Index made a higher high in mid-October. Meanwhile, the SPDR Technology ETF and Nasdaq-100 made lower highs. Second, SOX pulled back to hold its 50-day simple moving average (SMA) while XLK and NDX sank all the way to their 100-day SMAs. Additionally, SOX has been holding support at the same 2132 area where we flagged the channel breakout in late September. Chips also have sentiment in their favor as investors swing back toward cyclical stocks like industrials and financials (the “reopening”/”stimulus” trade). We already got a taste of that with yesterday’s strong ISM manufacturing index. (China’s Caixin showed a similarly powerful industrial rebound.) This trend could drive capital back to semiconductors, which are more economically sensitive. The industry also has secular tailwinds like 5G rollouts and cloud computing. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
TVC:SOX
by TradeStation
CrowdStrike Has Pulled BackOne of the main features of the market lately has been a rotation to non-megacap technology names. Zoom Video Communications, Twilio, Roku, Snap, Pinterest, Zendesk, Etsy, Match, Digital Turbine, Appian, Fiverr and others (including solars) have all shot to new highs lately. Meanwhile the biggest names like Amazon.com and Apple have drifted since the Nasdaq-100’s overbought top in early September. CrowdStrike could be a member of the “new name” club because it only went public in June 2019. The cybersecurity stock rallied along with other software companies between March and September and has been consolidating since. Four potential patterns are now appearing on its chart. First, CRWD’s stochastics have dipped to their most oversold levels since March. Second is the price zone around $130-131. It served as resistance at the top of a bullish triangle September 4-18. CRWD then broke through it and bounced above it on September 24. Prices have now returned to that same area. Third, CRWD has pulled back to its rising 50-day simple moving average (SMA). Fourth, momentum has been bearish over the last two weeks. But recent candlesticks show several potential reversal patterns: inside day on October 23, outside day/spinning top on October 26 and another inside day on October 27. Is it trying to stabilize, potentially allowing the longer-term uptrend to continue? TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NASDAQ:CRWD
by TradeStation
Zoom Video Highlights Pullbacks Across Software SpaceZoom Video Communications has clearly benefited from the coronavirus pandemic, but it’s not alone. The crisis has also lifted several other software and cloud-based service companies. Many of them, including ZM, pulled back last week as sentiment swung toward the reopening trade. This week they could be worth a look as new daily infections shoot over 80,000 for the first time. First, ZM has formed a high basing pattern above $500. This same level was roughly the top of a bullish triangle that it escaped on October 15, so we could be seeing old resistance turn into new support. The stock is also holding its 21-day exponential moving average (EMA). It’s not much of a pullback, but for a name with the kind of strength ZM has shown, it could still present an opportunity for trend followers. There are others: Twilio : The cloud-messaging stock has had some powerful earnings beats and guidance raises. It’s now pulled back following a breakout to new highs on October 2 and is trying to establish support above its old peak around $289. Digital Turbine : The mobile-software stock has surged more than 600 percent since May. It’s now retraced about 23.6 percent of that move and is trying to hold the same $33 zone that was resistance a month ago. EXP World : The provider of cloud-based real-estate software is retesting its 50-day simple moving average (SMA) after a 600 percent rally. It’s also near the $43 level that was resistance in August and September. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NASDAQ:ZM
by TradeStation
Marvell Technologies Is Pulling BackMarvell Technologies has been one of the better-performing chip stocks this year. It’s up 52 percent in 2020, while the Philadelphia Semiconductor Index has gained just 28 percent. MRVL broke out in May, well before most others. It spent the next four months in a long consolidation pattern, grinding higher but not really breaking out. That is, until ripping through a falling trend line on September 28. The stock proceeded to run almost 20 percent before losing momentum. It’s now pulling back and may provide an entry in the next week or so. The key area to watch could be roughly $38.70 - $39. That’s important because it’s roughly the location of the 50-day simple moving average (SMA). It was also an intraday high several times September 18-23. MRVL then bounced near that level on September 30, immediately after breaking out. Old resistance became new support. Here's the hourly: Beneath that, $37 could be important. That was the high in early June and a low as late as September 24. Fundamentally, the story focuses on 5G networking and cloud computing. MRVL’s next set of numbers are due in early December. Again, short-term momentum looks bearish. But now could be the time to start setting alerts and planning. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NASDAQ:MRVL
by TradeStation
Make or Break Time for Apple?This week has been all about Apple. It jumped on Monday amid iPhone 12 optimism, hit a wall and has been consolidating since. This brings up an important level on multiple time frames. First, on the weekly chart, AAPL’s high the week ended September 11 was $120.50. Monday’s rally broke above it and today’s pullback revisited it. This level could be very important. Will old resistance become new support? Second, on the daily chart, AAPL is holding above moving averages like the 21-day exponential (EMA) and 50-day simple (SMA). These lines are unusually close to each other, which creates the potential for a bullish expansion. Look back to August-September 2019 for a similar pattern: Third, the hourly chart shows AAPL opening below $119 but quickly rebounding. If it manages to claw back above the $120.50 weekly line, it could be a false breakdown. (Also potentially bullish.) Earnings are due in exactly two weeks. Coming sessions will likely bring increased chatter and potential early readings of interest in the new iPhone. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NASDAQ:AAPLLong
by TradeStation
1
PayPal Attempts a Bull Flag BreakoutPayPal has been a major beneficiary of coronavirus and the boom in e-commerce. It’s moved sideways since the end of July but now the chart may be attempting a breakout. PYPL formed a bullish flag since the start of September, with the trendline running down through the early October levels. Yesterday it closed above that trendline. Prices also consolidated at the 50-say simple moving average (SMA) and 21-day exponential moving average (EMA) for more than two weeks before getting decisively above both. The weekly chart has some interesting patterns: A bullish inside candle the week ended September 25 followed by a rip higher. Then another bullish inside candle last week, which it’s now escaping. PYPL’s last earnings report beat estimates. Its next report is scheduled for November 2. Now that the stock has moved above its falling trendline, it may have the potential for a meltup into the quarterly numbers. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NASDAQ:PYPLLong
by TradeStation
2
Nasdaq Reasserts Itself vs. the Russell 2000One common pattern this year has been sporadic rallies in the Russell 2000 , followed by longer periods of malaise. We saw it in June, early August and again in the last 1-2 weeks. Each time, it’s been followed by a shift back to Big Tech, Growth and the Nasdaq-100. The same process seems to be happening right now. This chart shows our Smart Relative Strength indicator, comparing the Nasdaq-100 to the S&P 500 with a 21-day interval. Notice how it started turning positive last week and has continued since. There are some other bullish signs for the Nasdaq. One is the bounce around 10,800. This was an important consolidation zone in July following a large engulfing candle. Another potentially bullish sign is the way prices snapped back above the 50-day simple moving average (SMA) on September 28. It’s held that line since amid some retests below. NDX also held the 21-day exponential moving average (EMA). Finally, MACD is now rising. The Nasdaq didn’t have a lot of catalysts in September, and its heavy price action reflected that. Now with Apple ’s product launch and Amazon Prime Day tomorrow, price action is starting to perk up. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
TVC:NDQ
by TradeStation
2
Alibaba Hits New High as Ant IPO ApproachesOne of the more interesting dynamics since the Nasdaq-100 swooned last month has been the relative strength of Chinese technology stocks like Alibaba. This hourly chart compares the Golden Dragon China Index with the Nasdaq-100 . First you have the simple outperformance since the low. Second, notice that HXC made a higher low in late September, while NDX made a lower low . That can indicate Chinese names faced less selling pressure than U.S. megacaps. Alibaba is an important Chinese company. As expected , it probed key support in late September before bouncing. Today it inched to a new all-time high. In contrast, none of the big domestic stocks have returned to old highs since last month’s pullback. For example, TradeStation’s analytics show that the only NDX members to hit new highs in the last week are less prominent firms like Copart , Seattle Genetics and Charter Communications . There are a couple of reasons. One is Ant Group’s initial public offering later this month: The world’s biggest fintech, doing the largest IPO ever – but outside the U.S.! BABA owns one-third of Ant, so could be the main way for Americans to play it. Another reason is China versus the U.S. The Asian country has not only recovered from coronavirus more quickly. It may have less political risk (at least in the near term) than the U.S. Just yesterday, the House of Representatives recommended significant antitrust measures against Apple, Amazon.com , Alphabet and Facebook. While these could prove “more bark than bite” in the long-term, they create uncertainty in the near-term. Maybe that’s why all four of those stocks remain below their 50-day simple moving averages (SMAs) today. Meanwhile, China’s settling into a post-pandemic recovery and seems determined to support its financial markets. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NYSE:BABA
by TradeStation
1
Channel Breakout in the Chips?The Philadelphia Semiconductor Index formed an interesting pattern this month as the market pulled back. It initially dove toward 2100, and then managed to hold that level even as the Nasdaq-100 and S&P 500 proceeded to make lower lows. Not surprisingly, that relative strength led to more bullishness this week as SOX jumped above its 50-day simple moving average (SMA) on Monday. It’s also fought its way into the large bearish candle from September 3, while NDX is only back to its September 10 range and SPX remains around its September 16 close. The key pattern we want to highlight today is the sideways channel in SOX between September 4-25 because we’re now seeing a breakout above that consolidation range. This may create the potential for chips to lead other tech stocks. We could even see an accelerated move if SOX retraces the fast price action from September 3. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
TVC:SOXLong
by TradeStation
1
Chip Stocks and Industrials Are Moving TogetherMarket correlations are always interesting because they can reveal how investors are thinking. One correlation recently been similar movement between semiconductors and industrials. (This chart shows the 10-day correlation between the Philadelphia Semiconductor Index and the SPDR Industrial ETF .) This isn’t a huge surprise because both are relatively cyclical. Stronger GDP growth tends to favor industrial equipment. It also boosts demand for chips. On the other hand, software companies have benefited from the coronavirus lockdown for two reasons. First, more social distancing means more demand for cloud computing and videoconferencing. Second, weaker economic growth keeps interest rates low, which makes it easier to own high-multiple software names like Zoom Video Communications or Salesforce.com . Industrial stocks outperformed in mid-September before crashing along with the S&P 500 last week. They’re trying to lead again today and chip stocks have pushed to their highs in sympathy. Meanwhile ETFs tracking software like IGV and CLOU have bled lower since the open. Traders may want to keep an eye on this pattern given the potential catalysts this week. Congress may pass a coronavirus-stimulus bill. We also have ADP’s private-sector payrolls report on Wednesday, ISM’s manufacturing report on Thursday and non-farm payrolls on Friday. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
TVC:SOX
by TradeStation
Cup and Handle Breakout in Roku?Roku was one of the market’s most explosive growth stocks in 2018 and 2019. It’s chopped around with the rest of the Nasdaq during the time of the pandemic, however recent price action shows some interesting relative strength. First, ROKU made a new 52-week high on Monday, even as the Nasdaq-100 hit a two-month low. Next, ROKU bounced at its 50-day simple moving average (SMA) several times this month. Third, the stock has two near-term support zones in play: The early-September high around $180 and the and the recent area between $170-175. Depending on the state of the market, a deeper test shouldn’t be ruled out. Finally, the longer-term chart shows a cup-and-handle on ROKU. March’s low is the “cup,” followed by the “handle” in June. Fundamentally, ROKU has some catalysts. Monday’s rally came after the company reached an agreement with Comcast over NBC Universal’s Peacock App. Even before that announcement, ROKU announced strong results on August 5, with earnings, revenue and subscribers all beating estimates. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NASDAQ:ROKULong
by TradeStation
1
Alibaba May Be Turning Resistance into SupportChinese technology stocks have held their ground better than their U.S. counterparts. The Nasdaq Golden Dragon China Index is 8.5 percent below its 52-week high, while the SPDR Technology Fund is down 12 percent. Alibaba, a key name in the group, has some interesting patterns on its chart. First is the bullish-triangle breakout in August, which it’s now retraced. The previous high around $267 has become the bottom of its range this month. Is old resistance becoming new support? Next, BABA made a slightly lower low on Monday than earlier in September. But it quickly rebounded. That’s a false breakdown and shows that buyers may be willing to defend the support zone. Third is the descending triangle. This may create the potential for a breakout as the downward line converges with the support zone around $267. Still, there could be some near-term chopping and retesting of support. Finally, there may be a catalyst relatively soon. Bloomberg reports that Ant Group wants to raise at least $35 billion in an initial public offering in Hong Kong and Shanghai. (Up from the $30 billion total discussed in August.) BABA owns about one-third of the company. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NYSE:BABA
by TradeStation
$VNET can rise in the next daysContextual immersion trading strategy idea. 21Vianet Group, Inc. provides carrier and cloud-neutral Internet data center services to Internet companies, government entities, blue-chip enterprises, and small-to mid-sized enterprises in the People's Republic of China. The demand for shares of the company still looks higher than the supply. This and other conditions can cause a rise in the share price in the next days. So I opened a long position from $24,14; stop-loss — $23,24. Information about take-profits will be later. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas. Thanks for being with me!
NASDAQ:VNETLong
by KozakHlib