Looking back at the last 4 weeks of price action on the stocks we were watching to see how well we were able to interpret the charts. On the episode released on 11/06, we talked about Z, PTON, V, FTV and TGT. Let’s see how we did.
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Zillow made headlines last month for all the wrong reasons, with a massive drop due to some questionable decisions around it’s home buying segment. We were watching that ~$65 level to see if it would hold as support and possibly fill the huge gap, or more likely, fail and drop to ~$55.
PTON was another stock with a huge gap down, and again we were looking for more selling before considering any longs. Our first support level was in the $51.50 to $49.50 area based on volume profile, followed by mid $40s and ultimately around $35. There was one day of strength on the 16th, but it was short lived and the selling pressure still looks strong.
Visa was exciting because it broke above a strong resistance level around $214.50 with decent volume. Kyle had a price target of $225, hoping to see it start to fill a large gap, but the stock had other ideas, topping out above $221 before falling well below $200.
FTV had been on Kyle’s watchlist for a while now after posting new all time highs, he noticed the volume was starting to dry up. since the stock was still in a strong uptrend, he was watching for a pullback to around $75 to get onboard. The pullback was deeper than we thought, hitting $73.02 before the buyers came back in and pushed for $77 briefly, but the long legged Doji candle from last Friday makes us cautious about trying to buy this dip…
Target was the last stock we looked at last month, and we again were looking for short ideas as the stock had failed to make a new high and also dropped below the key support level of $255. We were looking for $245 as our first price target with $233 as the stretch goal, but the stock had other ideas. It promptly rallied and put in that new high before earnings dropped it right back down. this is why those levels are so important, as they give us the location for our stops!