Stocks: April 14

Tue April 29th:
FB Face Book: this is starting to look a bit bearish as it sets up with a potential H&S pattern. The neck line looks to be at around the $54 level so watch for any break of that support. Price is also now trading below the Ichimoku Cloud:
 
FB:
 

FB Cloud:

 

Tue 22nd April

General Markets:
There has been much talk of a major correction but I am still not seeing any sign of this just yet. The S&P500 and NASDAQ are still trading above support and whilst the small cap Russell 2000 index broke its daily support trend line this chart is now looking rather ‘Bull Flag’ like:
 
S&P500: ‘triple top’ concern will probably emerge here soon though:
 
NASDAQ: watch for any breakout, up or down, as price edges towards the apex of the triangle:
Russell 2000: A Bull Flag forming here?
 
VIX: the fear index isn’t signalling anything just yet either:

Stocks: some stocks that are looking like they’re getting ready to make a bullish move:

KO Coca Cola: this is starting to look interesting now as it tests a recent bear trend line. KO is now trading above the daily and weekly Ichimoku Cloud which is bullish. A triangle breakout and close above the $41 might suggest bullish continuation here and, possibly, up to the $45 level:

KO daily:

KO weekly:

KO monthly

KO daily Cloud:

KO weekly Cloud:



MCD: McDonalds: Price has been consolidating on MCD since mid 2011. During this period it has been ranging between $86 and the $100 region but having trouble clearing the $100 level. It might be third time lucky this time! The stock has recently made a bullish breakout from a descending trading channel and is also trading above the daily and weekly Ichimoku Cloud. Watch for any new hold above the $100 level. MCD reports earnings before the market open today; ie before the bell April 22nd.



MCD daily:

MCD weekly:

MCD monthly:

MCD daily Cloud:

MCD weekly Cloud:



MRK: Merck & Co:Merck broke through the $50 level earlier this year and has been consolidating a bit lately. I’m watching for any break of the $58 level as this would suggest continuation. Merck is trading above both the daily and weekly Ichimoku Cloud:



MRK daily:


MRK weekly:

MRK monthly:

MRK daily Cloud: 

MRK weekly Cloud: 



MSFT: Microsoft
: Keep an eye on the NASDAQ but MSFT continues to look bullish as it holds above the major $37 support. The monthly chart shows clearly how the recent close and hold above the $37 support/resistance level has been a ‘game changer’ here. MSFT is trading above the daily and weekly Cloud as well:



MSFT daily:


MSFT weekly:

MSFT monthly:

MSFT daily Cloud:

MSFT weekly Cloud:



NUE Nucor: Like Microsoft, this stock has broken through a major S/R level recently. NUE tested the $50 level a couple of times last year but didn’t manage to close out the year above this key level. Price is back above $50 now and looks to be consolidating around this important region and within a triangle pattern. NUE is trading above the Cloud on the daily and weekly charts so I’m on the lookout for any bullish breakout here:



NUE daily:


NUE weekly:

NUE monthly:

NUE daily Cloud:

NUE weekly Cloud:


PEP: Pepsico: this stock has struggled twice already at the $87 level but I’m on the lookout for any new and successful attempt. Price is above both the daily and weekly Ichimoku Cloud:



PEP:

PEP monthly:

PEP daily Cloud:

PEP weekly Cloud:



AA Alcoa: I have been ranting about Alcoa ever since it made the wedge breakout at $8 late last year. This continues to look bullish and the weekly and monthly charts shows, now the $11 level has been cleared, that the $18 level looks like it might be the next stop! Price is trading above the daily and weekly Ichimoku Cloud:



AA daily:

AA weekly:

AA monthly:

AA daily Cloud:

AA monthly Cloud:



ADBE: Adobe: this is one I tracked from way back when it made the triangle breakout from the $35 level last year. Price did reach up as far as $70 but been consolidating at these new highs and looks to be forming a ‘Bull Flag’. Price is above the weekly Ichimoku Cloud but below the daily Cloud. Watch trend lines here and for any move back above the daily Cloud:



ADBE daily:

ADBE weekly:

ADBE daily Cloud:

ADBE weekly Cloud:


BAC: Bank of America: This stock made a bullish close above the $15 level late last year and has managed to hold above this level for now. Watch for any continued hold above the $15 level as this would suggest continuation and the monthly chart show that the $20 level looks like the next major support/resistance zone here. As for ADBE, price is above the weekly Ichimoku Cloud but below the daily Cloud so watch for any move back above the daily Cloud.



BAC daily:

BAC weekly:

BAC monthly:

BAC daily Cloud:

BAC weekly Cloud:

 

HPQ Hewlett Packard: I have been stalking this stock since prior to the bullish ‘inverse H&S’ breakout and continue to do so. The neck line of this pattern is at the $30 level and this breakout evolved along with a bullish triangle breakout as well; for added confluence! HPQ is trading above the daily and weekly Cloud as well which is bullish. HPQ reports after market close today, ie 22/5.
 
HPQ:
HPQ weekly:
HPQ daily Cloud:
HPQ weekly Cloud:
 

MU Micron Technology: Hindsight is very clear and, as it turns out, given that the daily S&P500 and NASDAQ trend lines had not broken last week then I should not have sold this stock. I’d held it from $6 so I can’t complain too much. Price is above the weekly Cloud and popped back above the daily Cloud after yesterday’s bullish move. The weekly chart does have a bit of a ‘Bull Flag’ look to it. 



I have sold Puts here but will buy stock and write Calls if it closes back above the previous highs:

 
MU daily:
MU weekly:
MU daily Cloud:
MU weekly Cloud:
 
YHOO: Yahoo: I have been tracking YHOO since it made the triangle breakout from the $19 level back at the end of 2012! That was $21 ago! Price is now consolidating under the next major S/R level of $40 and looks to be forming a possible ‘Bull Flag’. A break and hold above this $40 level and up from the ‘Bull Flag’ would be very bullish and the monthly chart suggests that the $60 level might be the next major stop here. Price is above the weekly Ichimoku Cloud but is back down below the daily Cloud. Watch for any ‘flag’ trend line breaks here and for any move back above the daily Cloud:



YHOO daily:

YHOO weekly:

YHOO monthly:

YHOO daily Cloud:

YHOO weekly Cloud:

Sun 13th April
MU: Micron Technology
 
I mentioned in my w/e write up how I had sold some stock and Call options and MU stock was one of these. 
 
My cost basis was just $6 and the stock had been as high recently as $25 but I sold it on Saturday morning at $21.19. This represents a gain of 250% though which isn’t too bad but, you may ask, why sell when the S&P500 and NASDAQ have yet to break their daily support?
 
S&P500
NASDAQ
The answer is because I have now received a signal to sell MU from my daily chart and, with the price pulling back, I wanted to lock in the sizable profit that I had accumulated. I am going to keep an eye on this stock though an will re-enter when I see the next opportunity.
MU monthly: this chart shows how MU had recently broken through the major resistance level of $20 and this may well offer some support in the short term. Respect of this $20 level would have me selling Put options back around this region:
MU weekly:  the weekly chart, though, shows how this stock has been running, ‘Forrest Gump’ style, for over a year now and I do consider that a pause or pull back may be in store. I have ‘fibbed’ this recent bull run and this shows that a 50% pull back would bring price back down to the $15 region, an area where there is also some support/resistance. A 61.8% pull back would see the $12/13 region which also shows some S/R.
MU daily: The daily chart is suggesting, to me at least, that if the $20 level breaks then we could be in for a pull back down to at least the $15 level. The reason for this is that I am seeing a possible bearish ‘Head & Shoulder’ pattern forming up on the MU daily chart, albeit a bit of a wonky one. The theory with these H&S patterns is that the suggested bearish move is equivalent to the height of the H&S, that is, the height of the ‘Head’ from the ‘neck line’. The height of this H&S is $5 and the ‘neck line’ is in the $20 region. This suggests a target for any bearish follow through to be down near the $15 region: 
Summary:
 
MU has paused on its bullish run and this represents either a period of consolidation for the stock or a period for some pull back.
The $20 seems to be the level to watch here so as to gain guidance about the short term future for MU.
  • A respect of this $20 level would suggest that the stock is just consolidating above new support and that bullish continuation may be in store. This would be akin to a ‘Bull Flag’ scenario. In that case I will resume Put selling.
  • A breach of this $20 level though would suggest that the bearish H&S may develop and I’d be looking for opportunities to resume trading here but at a lower level: down near the $15 level or lower!


Tuesday April 1st;
ACI: this has made another bullish monthly close above the $4.50 level.
 
 
Monday March 31st
 
I’m stuck at an airport and the flight is delayed 2 hrs. Thus, checking over some charts and thought I’d share what I’m seeing. I’m keen to see how these close out for the month. The monthly candle will complete after today’s trading.
 
CAT weekly: looking bullish and any close and hold above $100 would suggest continuation.
 
INTC monthly: any hold above $24 would suggest that $28 might be next target:
 
 
MRK monthly: a hold above the $50 would be bullish.
 
 
MSFT monthly: I see this, most likely, bullish close above the $37 as suggesting continuation.
 
 
NKE weekly: the $80 has given this stock some grief of late but and move above would be quite bullsih.
 
 
AA monthly: the continued hold above the $11 is bullish.
 
 
ACI: a monthly close back above the $4.50 would be significant.
 

 

 
ADM: any bullish close back above the $45 would put this into rare territory. For now, it looks to be trying to take on the $44 level:
 

 

 
BAC: this looks set to close above the $16 again this month which, if so, continues to be bullish.
 
 
BK: any monthly close here above the $35 would be bullish and suggest continuation.
 
 
HPQ: any monthly close above the $30 would suggest that the bullish ‘inverse H&S’ pattern might keep developing.
 
 
KBE: watch for any close and hold above the $35 level.
 

PFE: the continued hold above the $30 level seems bullish to me.

 
XLF: this ETF has struggled to escape from the 50% fib level. Any bullish continuation above the $22 would suggest more to come though.
 
 
YHOO: I’m on the lookout for any close and hold above the $40 as I believe this would suggest bullish continuation.