Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Stocks Fail Once Again At Resistance, Can We Make 3 Times?

Published 09/27/2019, 01:07 AM
Updated 09/20/2023, 06:34 AM
US500
-
SPY
-
AMZN
-
MU
-
NKE
-
TSLA
-

MACRO

S&P 500 (SPY (NYSE:SPY)

Regardless stocks didn’t have a great day falling by 24 bps. What is worse to some degree is that the index failed yet again at 2986. However, the good news is that a small uptrend has recently formed. I’m curious to see how this works out between the two trend lines.

It would seem that a megaphone pattern has been created in all of this mess. It established that dread loch-ness monster pattern we tend to hear about from time to time.

It is just one of those nasty patterns that look terrifying, but in reality, means nothing, because I made it up. But still, once again it proves that charting is in the eye of the beholder.

S&P 500 Index Chart

Back to reality, it is tough to say at that this moment in time which way the market wants to push. If the index fails again at 2985 tomorrow, I’d have to believe our next move is lower.

STOCKS

Micron (NASDAQ:MU)

Micron (NASDAQ:MU) surely won’t be helping the stock market. It is falling in the after-hours to support at $45.50. It will be necessary for that level to continue to hold. A drop below $45.50 likely sends it back towards $42.

Micron Inc Chart

I didn’t listen to the call, but I did quickly look at the guidance. Revenue guidance was stronger than expected, but earnings were weaker than expected. That is a tale of margin compression. Micron (NASDAQ:MU) and margin compression-only mean one thing, a lower stock price.

Tesla Inc Chart

Tesla (NASDAQ:TSLA)

I can’t believe it took this long for a “leaked” email to surface on Tesla’s delivery numbers. I was starting to get worried that perhaps the numbers would miss. Well, today, the worries stopped. A “leaked” email revealed that the company is very close to reaching 100,000 deliveries this quarter. So much for the demand issue, everyone was screening about in May. Now if those gross margin numbers can come up, then the stock would be worth a lot more.Nothing changes for the chart, with resistance still at $253.

Amazon (NASDAQ:AMZN)

Amazon Inc Daily Chart

Amazon (NASDAQ:AMZN) is starting to look as if the stock is in trouble. I’m beginning to think $1620 will soon be a reality.

AMD Inc Daily Chart

AMD (AMD)

AMD continues to look weaker too, with $27.20 on the horizon.

Nike (NYSE:NKE)

Nike Inc Daily Chart

Nike (NYSE:NKE) had a significant break out followings its results. It looks like it still has further to rise, to maybe $95.50.

Original Post

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.