Bitcoin Range: See The Breakout And Breakdown Points
Cryptocurrency Bitcoin continues to chop in a triangle pattern, trading just north of $7,500. Triangle patterns are consolidation formations, signaling shrinking volatility in the near-term but promising a big move on the horizon. Just last week, Bitcoin hit the lower end of the triangle near $7,000. It held and bounced back to $7,500+. The upside of the range is just under $9,000. As long as it stays between these two levels, expect chop. However, if it breaks below $7,000, Bitcoin will head to $4,900. If it breaks above $9,000, Bitcoin will head to $20,000. This is why triangle patterns are so important watch. The resulting move from the breakout/breakdown will be epic. Note the chart below.
Watch This Technical Chart Level For Unum Group $UNM
Unum Group (NYSE:UNM) provides group and individual disability insurance and group life insurance mainly in the United States and United Kingdom. This stock topped out in early January 2018 at $58.73. Since that peak in the share price the stock has plunged to $39.31 a share. Traders and investors should note that the stock is trading below its important 50 and 200-day moving averages. This chart formation will usually signal further downside for the stock. Trader should now look at the $35.00 area for major support on the charts. This important support level is where the stock broke out in November 2016. Often, prior breakout level will serve as major support when retested. This is a level where I will be interested in trading UNM stock on the long side.
Procter & Gamble Co (PG) continues to push higher as shorts cover and money flows to safer, high-dividend plays. With a move from under $71, Procter & Gamble hovers above $77.50. However, investors should be aware of a major gap fill resistance level coming into play at $78.20. Once hit, expect Procter & Gamble to pull back to $75.50 as consolidation takes hold. Only then should investors think about buying the stock for the next leg up.
Honda Motor Co Ltd ADR(NYSE:HMC) is a leading Japanese manufacturer of automobiles, motorcycles and power products, including general-purpose engines, generators, water pumps, lawn mowers, riding mowers, grass cutters, brush cutters, tillers and snow blowers. The stock topped out in February 2018 at $37.29 a share. Since that high pivot, the stock has declined. Today, HMC stock is trading around $32.36 a share. Traders should note, HMC stock is trading below it's important 50 and 200-day moving averages. This formation puts the stock in a weak technical position on the charts. Traders must now look lower for major support. The next important support level for HMC stock should be around the $30.50 level. This is a major retrace level and also an area where the stock broke out in October 2017. Often, this level will be defended by the institutional crowd when tested.
Shares of the Transportation ETF (IYT) continue to surge higher with eyes on the double top at $206.00. Based on the recent breakout in the Index, it is likely this target will be achieved within the next week or two, heading into the major cycle period that lasts between July and August 2018.
The commodity natural gas just broke out of a consolidation triangle. Natural gas storage is at a multi-year low in the United States and while oil is near multi-year highs, natural gas is just coming off multi-year lows. This recipe sets the stage for a solid surge in natural gas. Look for natural gas to trade up 20% in the coming months, realigning itself with the move in oil.
Mylan Drops After FDA Finds Deficiencies In Its Version of Advair, Watch This Level
Shares of the pharmaceutical giant, Mylan NV (NASDAQ:MYL), are falling by nearly 5.0 percent to $39.70 a share. The sharp decline in the stock comes after the FDA said that it found minor deficiencies in Mylan's generic version of Advair. Today, the stock is fighting to stay above its important 50 and 200-day moving averages. A close below these key support levels will signal further downside in the stock price. Either way, should the stock decline further from current levels the next major support area would be around the $35.00 area. This is where the stock broke out on early May 2018 and should be defended by the institutional crowd if retested.
Best Risk vs. Reward Short Trade Setup On Alphabet $GOOGL
Shares of Alphabet (GOOGL) are surging again as best of breed technology stocks are the 'in' thing. Every investor wants some, no matter the price. I am sitting back, allowing the average investor to pile in until Alphabet hits $1,181.50. Why this level? It offers the best technical setup trade short, with the smallest risk to biggest reward. Let me explain... The $1,181.50 level is a major gap fill, unfilled at this point. In addition, it is within 1% of the all-time high which is also a double top. This gives added resistance and adds to the short trade chance of success. Now that we have a technical trade level, let's look at the risk versus reward. First, the reward would be a fall with days to $1,120, with a second target over the following month to $1,000. The risk to the trade is tiny as any confirmation above the all-time high of $1,198 would stop you out. So in reality, the reward is $61 - $180 while the risk is a tiny $16.50. That is the type of trade worth taking in my humble opinion.
Verizon Remains Weak On The Charts, Know This Trade Level
Verizon Communications Inc (NYSE:VZ) has been falling lower over the past week. Many traders and investors are now expecting Verizon to get into the acquisition game since AT&T Inc (NYSE:T) and Time Warner Inc (NYSE:TWX) received approval to merge. Either way, the charts are telling me the stock should continue to trade lower in the near term. The $45.00 area is where there should be major chart support when tested. This important support area is where the stock was defended multiple times in 2017 and will likely be defended again.
Shares of Tesla (TSLA) are back in style as the stock continues to surge towards its target of $390. It seems as though Elon Musk has regained his mental clarity and is leading the company forward. Investors believe the production targets will be met and all is good in Tesla world. If the stock continues to surge higher, I expect $390 to be hit and crossed. I have a short trade setup at $405.
Know This Trade Level For This Major Defense Stock
Most of the leading defense stocks topped out in late April 2018. Since that pivot top, many of the leading stocks in the defense sector have declined by 10.0 percent or more. Raytheon Co (NYSE:RTN) is a stock that has now caught my eye. This stock is now testing its 200-day moving average. A failure to hold this key support level should signal another decline in the stock. The next major support area that will come into play will be around the $188.00 level. This is where RTN stock broke out of a sideways base in January 2018. A retest of this important level will likely be defended by the institutional money crowd. This is where I would look to enter a long position in the name. Some other leading defense companies that I follow include Lockheed Martin Corp(NYSE:LMT), General Dynamics Corp (NYSE:GD) and Northrop Grumman Corp (NOC:NYSE). These defense stocks are also on my radar for trading opportunities.
Shares of Boeing Co (NYSE: BA) will likely remain weak as a trade war with China escalates. The likely downside target is $310.00. This is the major pivot low from May/April and the daily 200 moving average. Once there, look for a strong bounce.
Shares of Celgene Corp (CELG) are beginning to breakout on the daily stock chart. This pattern setup is fantastic as money is beginning to flow from over-bought sectors to under-bought sectors. In a market priced to perfection, the biotechnology stocks have drastically lagged. Their valuations are extremely attractive compared to an Amazon (AMZN) and Netflix (NFLX). The Celgene stock chart has formed a beautiful bull flag just off the 52 week lows. Today, the breakout is beginning as the stock is up over 2% and cracking the upper band trend line. Look for an upside target of $86 in the near-term.
Oracle $ORCL Stock Gets Slammed, Know This Trade Level
This morning, shares of Oracle Corp (NASDAQ:ORCL) are falling lower by more than 7.0 percent to $42.87 a share. The decline comes as the business software giant gave an outlook below forecast. The stock is now nearing its 200-week moving average which should serve as short term support. A close below this key area will likely indicate another move lower for the stock. The next major support level for ORCL will be around the $40.00 level. This is where the stock broke out in February 2017. Very often, when a stock retests a prior breakout level it will be defended by the institutional money. ORCL will be on my radar around this key support area.
Starbucks Gets Roasted, Now Watch This Gann Trade Level
Yesterday, Starbucks Corporation (NASDAQ:SBUX) sold off after announcing it will be scaling back store growth and closing under performing urban locations. On June 19, 2018 SBUX stock closed at $57.43 a share, today the stock is trading at $51.00 a share. Very often, when a stock plunges in this type of chart formation it will signal lower prices ahead before a solid bottom is found. The retail coffee giant is now trading below its important 50-week moving average, this is also a sign of weakness. Traders must now watch the $48.00 as the next major support area for the stock. This level is an important Gann number and should be defended when tested.
The Semiconductor ETF $SMH may fall to $75 per share. This is shocking to most as the current price of the SMH is $107.75. However, a head and shoulder pattern is forming which is extremely negative for the semiconductors. Should the $SMH break the neck-line at $97.50, the calculated collapse target is $75. This would be a drop of over 30% from the current levels. This is a pattern all investors should keep on their radar because of what it means for the macro markets. If the semi's drop this much, you can bet the NASDAQ and S&P are in freefall as well. Again, please note this pattern has not triggered, but if it does, make sure YOU understand the repercussions...
The Semiconductor ETF $SMH Is Falling And Here Is Where It's Going
Today, the VanEck Vectors Semiconductor ETF (NYSEArca:SMH) is declining lower by 0.52 to $103.17 a share. This important ETF represents the semiconductor sector which is often a leading indicator for the tech heavy NASDAQ Composite. It should be noted that the SMH has lagged the NASDAQ Composite recently and that is generally a bearish indication for the tech sector.
A couple of days ago the SMH tested it's 200-day moving average around the $102.00 level. Should the SMH close below this key support level it would indicate more downside in the near term. The next major support level for the SMH would be around the $95.50 level. This support area is where the SMH pivoted and bottomed on April 25, 2018. This area should still be major support when retested.
FireEye Inc $FEYE Head & Shoulders In Full Motion To This Target
Shares of FireEye Inc (FEYE) continue their collapse after the neck-line of a head and shoulder pattern was violated. The break of a neck-line triggers a head and shoulder pattern, ultimately taking it to its final resting target. In the case of FireEye Inc, the final resting target is calculated out to be $13.50. The stock currently trades at $15.60, so there is still significant downside to go. I will be an interested buyer at $13.50, when the head and shoulder pattern has completed.
Watch This Medical Device Maker At This Trade Level
Varian Medical Systems, Inc. (NYSE:VAR) is a leading manufacturer of medical devices and software for treating cancer and other medical conditions. The stock topped out on January 26, 2018 at $130.29 a share. Since that high pivot the stock has traded lower in a very choppy fashion. At this time, VAR stock is trading below its daily chart 200-day moving average. This is indicating that there could be more downside in the near term. Traders and investors should now watch the $109.00 area for major support. This level is where the stock broke out of an eight month base. Often, stock will find major support and be defended at prior breakout levels.
End Of Year Target On Walgreens Boots Alliance $WBA
Amazon.com (AMZN) did it again. The online giant bought PillPack and is now headed into pharma distribution online. Shares of Walgreens Boots Alliance (WBA) and other pharmacy plays crumbled. Unfortunately, there is little support in the stock chart of Walgreens until $45.50. I expect this level to be reached by year end at which point I will look to accumulate based on major technical support.
