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 11/20, we talked about CVS, F, COF, TSM and AQST. Let’s see how we did.
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CVS made Dan’s list after announcing the closing of 900 locations. We were watching the support at $92.25 for a break and retest, targeting a push down through minor supports at $91 and $89 to the next major support at $87.50. On 11/26-27, the break and retest occurred and just missed our ultimate target, bottoming out at $88.77 before rallying to a new 52 week high.
Ford and GM made the news that week after announcing they were getting into the chip manufacturing business. When we looked at the chart, our feeling was that it was looking kinda top heavy and were watching for a failure of $19. F did break below our level on 12/6, but buyers stepped in pretty quick and pushed the close back above. Other than the false breakout and a marginal new high, not much has happened yet and our trade idea is still on the table.
COF ended up on both Dan and Kyle’s watchlist as it had just failed to hold support at $151.90. The stock did rebound over the next 3 days, topping out around the $158.50 resistance before continuing the bearish move. The drop filled a small gap from April around $140, coming up just shy of our next target of $135.
Taiwan Semiconductor Manufacturing Co.
The next stock was also on both our lists, after we both saw the beautiful channel TSM’s price had been stuck in for the past 8 months. With this stock, we were looking for either a breakout of the $125-$108 range, or to just play the range. A false breakout on 11/22 occurred before the stock ultimately dropped back into fair value territory over the next few weeks.
AQST was brought to us via YouTube comments, so we decided to apply some TA to the stock. At the time, AQST was holding $5.50 as support, but the stock had been in a longer term bear trend for the past year or so. We didn’t like the idea of getting long unless price broke above $6.37 with volume, ($7 ideally) for a push to $8 again. If $5.50 failed, we had supports at $4.70 and around $3.00 that could be targeted. The latter happened after a double top at $6.37 and price tagged the $4.70 level before rebounding with decent volume back above $5.50.