Today I choose to analyse 5 stocks. For two of them I have bullish expectations, for another two I have bearish expectations while the last one is neutral with a bearish bias. Lets start with the two bullish scenarios. My favorite stock with a bullish scenario currently is Twitter Inc (NYSE:TWTR). I’ve been bearish TWTR since 556 targeting low 40s as the potential bottom for wave C down as shown in the updated chart below.
Wave C is almost if not already complete. Trend remains down but I believe a reversal will take place from 40-41 area. Confirmation of trend change will come one price breaks above 47.75. My longer-term target is new all time highs.
Zillow Inc (Z.O) is my next favorite stock. I was bullish from low 80s targeting 110 but we exited at 96. The sideways triangle was broken upwards and price is now back testing this break out levels. If support at 80-84 holds and a break above 96.19 comes, we should expect 102-104 to be tested afterwards.
If Z falls below the upward sloping blue trend line in the weekly chart then it will have entered the Ichimoku cloud area support and would turn to neutral from bullish. As long as the cloud remains below price, then I’m positive. Breaking above 96.19 will increase chances of success for my bullish expectations towards 104-110.
Apple Inc (NASDAQ:AAPL) is my favorite stock with most bearish view. My longer-term view for AAPL has been bearish since 550 targeting 470-450. The current rejection at 549 and the lower high at 543.504 confirm that there is no clear impulsive move up and that the rise was corrective. Short-term trend is down as we have made a lower high and lower lows during the last couple of weeks. Inability to break above 550 was crucial. I expect AAPL to challenge the lows at 516 and if broken we should soon expect a test of 500-490.
Of course a break below 500-490 lows will confirm we are going towards our longer-term target of 450-470. Through my free twitter account @alexanderyf I have also posted when price was at 548 that I bought 470 June Puts at 2.5, valued now at 3.95.
Bank of America Corporation (NYSE:BAC) has also made a bearish pattern that could bring price towards 16 again. The short-term technical view of BAC is not good. Rejection at 17.50 and a break below the previous low at 16.83 is putting this stock to my bearish favorites. As long as it trades below 17.50 I believe bears will have the upper hand. With a Head and shoulders formation completed and the neckline broken on Friday, price could move lower than 16 which is important support.
Long-term support is found at 16 and I think price will soon re-test that area. The Ichimoku cloud will provide support and it will not be a good sign for the longer-term bullish trend if price moves below 16. So more downside is expected.
LinkedIn Corporation (NYSE:LNKD) has been in a downward sloping channel for some time now. Trend is down and price is approaching important long-term support levels at 160. Critical support is at the 61.8% Fibonacci retracement. The decline in the price of LNKD has no clear impulsive pattern and consists of lots of overlapping price movements. This implies that the decline is corrective and the upward trend will resume once this decline is over. I believe the end of this downward correction is near.
160 is a price level that supports this idea. The reversal could come from this price area. The price is also moving below the weekly Ichimoku cloud and if this is a fake break down, it should soon reverse upwards. Otherwise, this is a bearish signal that if not reversed, it could push the price of LNKD towards 140. Confirmation of trend change to up will come when price breaks above 192 on a daily closing basis.
For more analysis regarding US stocks, FX, Gold, European and US indices, follow us on @alexanderyf or become a subscriber today to receive our real-time tweets and trades.
Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.