Five Stocks That Have Held Up For Now
These stocks have been correcting and could be ripe for bounces. But the question remains whether they are forming tops.
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The Market
Over the last few months, we’ve looked at several stocks that were correcting. My comment was always let’s watch these stocks to see if they make a lower low or if they hold. In each case, they have held.
This week, we looked at Netflix NFLX with the same situation. Yesterday, it appeared to be holding, and today it gave way. But it finds itself at that 1250 level, which is support from the June high, and this uptrend line dating back to May. It really ought to bounce within the next few days, but this stock should be on your watch list.
At some point, these stocks will not get saved, and we need to be aware of it because it takes time to show up in the statistics; the charts usually show it first. So, if there is a change, we want to know.
One of the names I wanted us to watch a month or so ago was Twilio TWLO. It was toying with 115. You see how it didn’t break and rallied, but basically came right back down to the 115 area (technically it’s 112-113). But forget the level for a minute and notice the stock is the same price it was in May. And that is exactly why we want to know if it breaks these lows. Especially if it does it approximately two weeks from now, because that is when the flat line intersects with the uptrend line.
Another name from that list in mid-June was Walmart WMT. You may recall when I was asked about Walmart in May, I said I thought it was likely to be in a trading range of 95-100 (it has mostly done that). But in mid-June, I said watch if it breaks the lower end. It didn’t. Instead, it rallied, but now it finds itself back here again. Would breaking 94 be a big deal? There is support at 90-92, but think of all that resistance it would leave overhead.
There is a new name I would add to the list. It’s highly speculative and in the big picture not a big deal as, say, WMT is, but CoreWeave CRWV, a hot IPO this year, is back to its early June level. If this can’t bounce, it tells us something, doesn’t it?
Finally, last week, we looked at Palo Alto Networks PANW as someone requested it. At the time, I didn’t love the chart, wondered why these cybersecurity stocks had lagged so much. Today, the stock got clocked (after attempting a breakout yesterday). It has a ways to go to get to support at 185-ish. But we’ve got a list of well-known and well-owned stocks to put on our watch lists. None have broken, but are they rolling over?
Yet despite this, it feels as though the S&P (which is flat on the week) will never go down again!
New Ideas
If you are looking for a down-and-out retailer, then look no further than Lululemon LULU. It broke support but came right back over it and now has retreated for a little retest. I don’t have a great stop for it, but it might be worth a trade.
Today’s Indicator
The ten-day moving average of the put/call ratio is low again, under .85.
Q&A/Reader’s Feedback
Enovix ENVX has a big base, but it is also overextended and has that spike high from January to contend with. It has also been green for six or seven straight days. Some digestion would be helpful. Or a pop to 16 followed by a pullback to 13-14.
PBF Energy PBF crossed a downtrend line (black) and now has to contend with the blue resistance area (30-32). The pattern has been to rally and pull back, so perhaps a move to 30 followed by a pullback to 25-26 before chewing through that resistance.
The homies look like they are turning upward, with their rounding bottoms. DR Horton DHI will run into some resistance in the 145-150 area, but the measured target from this small base is around 155-ish.
Helene welcomes your questions about Top Stocks and her charting strategy and techniques. Please send an email directly to Helene with your questions. However, please remember that TheStreet.com Top Stocks is not intended to provide personalized investment advice. Email Helene here.
