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 11/13, we talked about TSLA, JNJ, DE, PLTR and LYV . Let’s see how we did.
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Tesla is a stock that makes the headlines quite often thanks to Elon Musk, and this time was no exception. The stock had a big sell-off thanks to the results of a twitter poll in which he “offered” to sell 10% of his holdings so he could pay more taxes… We’d previously been watching for a gap to fill in the $950-$900 range and this seemed much more in reach. Our support at $988 did fail, but buyers stepped in just before the gap could fill. With Musk back in the spotlight after saying he was considering quitting his job, this fill continues to look appealing.
JNJ made our watchlist after the company announced it was splitting into multiple companies. The idea was to look to GE as a comparable to how the stock price could react. Ge had recently made a similar announcement and had similar price action… Initial spike followed by a bearish move. We were watching for either a break above $167.66 for a retest of $171, or a break below $161.88 for a continuation to $157 and potentially $153. Ultimately, the latter happened with the price falling below $156 before buyers stepped back in.
Dan was initially looking at DE after seeing it in the news for an ongoing strike and spotted a strong range with support at $320 and resistance at $400. We had a tough time deciding on a plan, as there was a tweezer top on the weekly at $366, but also a nice bull flag forming too. We decided to watch $365 and if it broke above, a move to $370-$375 was likely. The other idea was to watch for a retest of $320 to get long and play the range. On the 24th, the stock did break above our level with strong volume and nearly tagged $175 before quickly getting rejected. The idea is still in play though, as the price continues to bang against that $365 level.
PLTR has been on our radar since the IPO, and the price had a sharp sell-off following (decent) earnings. We were watching the support at $22, if it failed, $20.75 then $17.50 looked likely. If it held and broke above $23.75, a push back to $25-$27 was likely. In the end or bearish bias proved correct as $22 failed and the stock nearly hit $18 before bouncing.
LYV was really appealing to Kyle thanks to a big gap left behind after their November earnings report that was starting to fill. we liked the $114 area, as it looked like it had failed as support and turned into resistance. Kyle was watching for a bear move to $106 to $102, Dan targeting $100-$98, with the idea of flipping long as both were still bullish on the company. The plan worked perfectly, with a low of $98.50 before rallying back to retest the $114 level again.