Shares of Amazon.com Inc. (AMZN) continue to grind higher. However, unlike stocks like Facebook (FB) and others, it has not made a new all-time high in recent days. In fact, Amazon has a classic bear flag wedge pattern formation on the daily stock chart. This signals a likely sharp drop in the coming month, possibly on an earnings miss. With the chart setup being strongly bearish, there is a classic way to swing trade the stock. Look to short at current levels of $1,730, with a stop on any daily close above the all-time high of $1,763.10. This allows for a tight, less-than 2% stop. The downside reward is fantastic, with the calculated target from the bear flag being $1,520. This is a 12% profit. A risk/reward trade setup like this is what the big players look for when swinging the market. Enjoy!
Watch This Daily Support Level For This Major Retail Stock $DDS
Many of the leading retail stocks have traded sideways for the past several weeks. One particular retail equity that has caught my eye is Dillards Inc (DDS). This retail stock has been pulling back since mid-June. The stock is now trading below its important 20-day moving average which tells me it has lost near term strength and momentum. The next key support area for DDS should be around the $81.00 area. This level is where the stock broke out in late May 2018. Often, when an up-trending stock pulls back into its breakout level it will be defended by the institutional crowd.
Shares of F5 Networks (FFIV) are forming a classic inside-bar, bear flag pattern. This is about as good of a short signal as swing traders can hope for. Anything around the $180 price point is a good short.
Carnival Cruise $CCL Is Sinking, But Watch This Level
Carnival Corporation (NYSE:CCL) has steadily declined since late January when it peaked at $72.70 a share. The stock is now trading below all of its key moving averages which puts the stock a weak technical chart position. The next important support level for CCL stock will be around the $54.00 level. This area is where the 200-week moving average is currently and should serve as support when tested. Pattern will be very important to follow over the next few weeks in this stock. Should there be consolidation above the 200-week moving average then traders will have to look lower for the next major support level. As of this time, the $54.00 level looks like solid for a bounce in the shares.
American Airlines Group $AAL Major Target Buy Revealed
Shares of American Airlines Group (AAL) continue to fall lower, along with the rest of the airline sector. Based on pure technical charting analysis, there will be more downside in the coming month. The stock should bottom based on cycle calculations in mid to late August at a price point of $30. Upside off this major buy trigger price is 50%. Big hedge fund managers and the top traders are looking to accumulate a position in this $30 range.
Predicted Oil Collapse Underway...See The Targets Here
The commodity oil is going lower, as I predicted a week ago. The $75 level was a major technical resistance point (seen on the chart) spanning back years and common sense told you not only would July 4th mark a high pivot, but President Donald Trump would start ripping OPEC to get oil down into the mid-term elections. Every political party in charge talks oil down into elections to get a few extra votes. This November is one of the most important elections in recent history. These factors all spell major trouble for oil. I have a first support target of $66 in the charts from my short alert at $75.00. The first target is just that, a quick bounce before oil heads even lower into November. The final target into November is $55.00/bbl. See you there!
Copper Futures Has Been Melting Lower, Watch This Bounce Level
Copper futures (HG-U18) have been falling sharply lower over the past five weeks. The industrial metal topped out on June 7, 2018 at $3.31. Since that high pivot, copper futures have fallen lower by over 16.0 percent. Today, copper futures are trading around the $2.79 level.
Traders should remember, the strong U.S. Dollar will generally hurt the price of copper and most other commodities. The U.S. Dollar bottomed out earlier this year and continues to remain near nine month highs. The pattern in the $ U.S. Dollar Index (DX-U18) chart is indicating more consolidation near term, so that could be positive for copper very soon.
Traders should watch copper futures (HG-U18) around the $2.62 level. This is where the 200-week moving average is currently at. There is also a lot chart support around this level as this is where copper futures formed a basing pattern back in the first half of 2017. Some major copper equities that could benefit from a bounce are Southern Copper (NYSE:SCCO) and Freeport McMoRan Inc (NYSE:FCX ).
Here's The AT&T Level That Every Trader Should Know
Everyone in the trading world is talking about AT&T (NYSE:T) these days. As you all know, the communications giant recently won a case against the DOJ regarding a merger with Time Warner. Since that court ruling the shares have continued to slump. Last week, the DOJ said that they would appeal the court decision.
The truth of the matter is that AT&T (NYSE:T) shares topped out in July 2016 at $43.89 a share. Since that pivot top in the stock price the share has dropped sharply and currently trade at $31.87 a share. Traders and investors should now watch the $29.65 level for support. This important support area is a major retrace level for the stock. Often, major retrace levels will serve as excellent support when retested.
Mylan NV (NASDAQ:MYL) is a leading developer of branded and generic drugs. The stock has been slumping since peaking in late January 2018 at $46.72 a share. Since that high pivot, the stock has fallen by more than 10.0 points and is now trading at $36.33 a share. The current daily chart pattern is forming a bearish consolidation pattern which indicates lower share prices ahead. Traders and investors should now watch for major support around the $34.50 area. This support level is where MYL broke out in October 2017 and should be defended again when retested.
Gold continues to fall as the U.S. Dollar grinds higher and investors flock to stocks versus the safety of the metal. In addition, it can not be understated how much crypto-currency has taken some of the buyers away from gold. Whatever the reasons, gold continues to tumble, now trading below $1,230/ounce. After analyzing the chart of the gold ETF $GLD, the buy level appears to be $112.50. That signals a drop below $1,200/ounce before the buy becomes a fantastic swing trade play.
Short Trade: CSX Corp $CSX Hits Major Resistance On Earnings Pop
Shares of transportation company CSX Corp (CSX) jumped over 6% on earnings. However, the move took the stock into an upper-band trend line which has continued to cause pullbacks through the last few years. This implies this upside move in CSX Corp will be short lived and swing traders may actually want to short the stock here at $68.75. The downside target calculation signals a move to $60.00 in the coming months.
Freeport McMoran $FCX Is Sliding, Where's The Trade?
Freeport McMoran Inc (NYSE:FCX) is a leading mining company that focuses on copper, gold and molybdenum. The stock has been falling sharply since mid-April and is now trading around the $15.87 level. Traders should note that the stock is now trading below the 50-day moving average. This puts the stock in a weak technical position on the daily chart which should signal lower prices ahead. The next major support level for FCX stock will be around the $14.50 area. This level is where the 100-week moving average is currently and it should be support when it is retested.
Take-Two Interactive Software $TTWO Nails Key Short Level
Shares of Take-Two Interactive Software (TTWO) were trading below $10/share in 2012 and below $25/share in 2015. The current stock price on Take-Two Interactive is $127/share. In January 2018, Take-Two topped and had a sharp pull back to below $95/share (a 25% correction). Since the bottom in April 2018, the stock has moved higher, now hitting the same pivot high from January. This is known as a double top and a solid risk/reward shorting opportunity for swing traders. Look for Take-Two Interactive to fall from this $127 level at least to $110 in the near-term. The longer term (6+ months) could see this stock dive to $80/share. Take-Two is a dead short to smart traders and investors.
Last week, leading electronic commerce company, ebay inc (NASDAQ:EBAY), dropped sharply after reporting earnings and issuing weaker guidance. Traders should note that the stock actually peaked on February 1, 2018 at $46.99 a share. Since that pivot high in the stock price the shares have plunged and are currently trading a $33.58 a share. EBAY stock is now trading below its important 50 and 200-day moving averages. This chart formation now puts the stock in a weak technical position.
There will be two key support levels for EBAY stock coming up. The first support level will be around the $30.00 area. This is where the 200-week moving average is located. If price comes directly into this moving average it should serve as support when tested. The second major support level f or EBAY stock will be around the $27.50 area. This level is where the stock was defended in November 2016. Often, stocks will find important support when a major pivot area gets retested.
Shares of Halliburton Company (NYSE:HAL) fell sharply on Monday following their latest earnings and guidance. The stock dropped 8% by lunchtime. Just since May, Halliburton is down from $55 to $41.50. This epic fall has come to pass while oil trades near multi-year highs. This is extremely bearish price action. Based on technical analysis, the stock could fall all the way to $38.30 (double bottom) before finding major swing trade buy support. This is where most big-time pros will be looking to buy for a technical bounce.
Automobile Earnings On Tap, Watch These Trade Levels $GM
Tomorrow is a big day for the automobile stocks. Leading auto stocks such as General Motors Co (NYSE:GM), Ford Motor Co (NYSE:F) and Fiat Chrysler Automobiles (NYSE:FCAU) are all scheduled to report earnings tomorrow. General Motors Co (NYSE:GM) is going to be on my radar if the stock declines. Traders should watch the $35.00 area if the stock falls sharply after the announcement. This level is where the stock was defended in March 2018 and should be excellent support if retested.
Whirlpool Corp $WHR Crashing, See Where It Will Bounce Here
Shares of Whirlpool Corp (WHR) are crashing hard after reporting lackluster earnings results. The stock is cratering 14% today, trading just south of $130.00. Technical traders and smart money are eyeing the major support pivot of $120.00 as a bounce level for Whirlpool Corp. This is a swing trade with an easy 10% snap back written all over it.
Toll Brothers Inc $TOL Is Testing Key Support, But This Level Is Better
Leading home builder, Toll Brothers Inc (NYSE:TOL), has been steadily declining since January 2018 when it traded as high as $52.73 a share. Since that high pivot, TOL stock has steadily fallen lower. Today, TOL stock is trading at $34.93 a share. Despite the stock being severely oversold and holding a major retrace level there is very little optimism for the shares to move higher from here. Many investors believe that higher interest rates will hurt the home-builder stocks going forward. Traders and investors should now watch the $30.00 area as the next major support level. This area is where the stock broke out in December 2016. Often, when a stock retests a major break-out area it will be defended by the institutional money.
Shares of Jetblue (JBLU) continue to collapse. Based on technical chart signals, the downside remains strong until price reaches $14.25. Once there, expect a solid swing trade bounce higher, possible back over $18.00. Cheers!
