ADI] Analog Devices, Inc. ($48.25) - Seminconductors - Already a 1 for 5'er, ADI completed its second consecutive sell signal to confirm that supply is in control. This breakdown brings the stock back to its February pullback low and follows recent changes to negative weekly and monthly momentum. With the weight of the evidence now negative for ADI, those still long can use this most recent breakdown as a stop loss.
[BAX] Baxter International Inc. ($71.51) - Healthcare - With only 1 positive attribute, the weight of the evidence for BAX is already on the negative side. The only attribute it has been able to maintain is its positive trend, which is now being threatened with its recent sell signal at $71. If the stock continues lower from here, it will violate its multi-year bullish support line with a move down to $69. Those still long here will want to set an alert for a trend line violation, as that would leave the stock with zero positive attributes and should thus be used as a stop.
[BBG] Bill Barrett Corporation ($20.74) - Oil - Shares of BBG fell below $19.50 on Wednesday and thus completed a bearish catapult pattern. This breakdown also takes out support that dates back to June of last year. With zero positive attributes and supply clearly in control, this is one to sell and avoid for now.
[BIDU] Baidu, Inc. (China) ADR ($212.03) - Internet - After spending the past several weeks consolidating between $212 and $228, BIDU broke out of that base to the downside on Wednesday. A move to $208 completed a triple bottom sell signal. Those with profits to protect, can use this breakdown as a tight stop loss point, especially considering the next potential support isn't until the $178 range on the chart.
[BLK] BlackRock, Inc. ($323.24) - Wall Street - After completed a triple bottom breakdown on its chart Wednesday, BLK is now within just one box of violating its long term bullish support line. A move down to $316 would change the trend from positive to negative for BLK for the first time in 2 years, which would also cause a decline in the technical attribute rating from. With that in mind, current investors can look to use $316 as a stop from here. If the stock manages a reversal off of this support, it will complete a quadruple top breakout with a move to $340.
[DUK] Duke Energy Corporation ($75.30) - Utilities/Electricity - For about a year and half now, DUK has been trading in a range of about 65 to 75. For the third time in about 18 months, DUK is again testing resistance at 75 and setting up for a spread triple top at 76. Okay to buy DUK on that breakout with a stop ideally set at 68, a spread triple bottom and violation of all near term support. A closer stop could be placed at 70. Note the nice yield of 4.2% for DUK and the monthly momentum recently flipping back to positive.
[GRMN] Garmin Ltd. ($50.99) - Electronics - GRMN has been a very strong stock over the past few years, but has come upon rougher times since peaking in July at $62. The stock has now given three near-term sell signals with the most recent double bottom break at $50 on Thursday. This sets up a rather important test for investors and provides a few interesting levels as well. The attribute rating is 4, but a decline to $47 would violate the bullish support line. This would provide cause for investors to play some defense. On the other hand, if the stock finds buyers here in the high-40s, a print at $55 would return the chart to a near-term buy signal and suggest the stock is ready to recover from its near-term woes. Okay to buy upon such a breakout.
[MCD] McDonald's Corporation ($94.19) - Restaurants - The trend chart of MCD is negative and the stock has no positive technical attributes. MCD tested resistance earlier this year at 102 but was unable to get through that area and instead broke down and moved back to a negative trend. MCD has just reversed down to make yet another lower top. While the yield is good on MCD, the stock appears ready to test support in the 89-90 area. After that, the next support is at 84.
[RS] Reliance Steel & Aluminum Co ($67.32) - Steel/Iron - Shares of RS have been among the most stable of Steel stocks in recent years, but this area of the market has been very narrow in its leadership and generally choppy in its participation in broad market returns. RS broke a spread triple bottom at $66 on Thursday, a move that violated all visible support from earlier in 2014. The attribute rating is already 2, and so defense may be considered here with the weight of evidence bearish in general.
[RSP] Guggenheim S&P 500 Equal Weight ETF ($74.78) - The day to day gyrations of the market can tempt us to take our eye off the ball so sometimes it is helpful to look at a Point & Figure chart of the market and get a picture of what's really happening. A peak at the chart of the RSP still shows a textbook series of higher highs and higher lows above the bullish support line. In fact, the RSP has just pulled back on the chart, as it has done routinely for months now. The first sign of any trouble here would be a double bottom at 70.
[TXT] Textron Inc. ($35.48) - Aerospace Airline - Shares of TXT broke a double bottom at $35, which completes a bearish catapult formation from above the bullish support line. The attribute rating is 4 and the stock was able to publish new highs a few months ago at $41, and is also within about 10% of its bullish support line. For these reasons, investors currently involved in the stock may afford the position a bit more room here and use trend-based stops of $30.
[WEN] Wendy's Company ($8.11) - Restaurants - The trend chart of WEN is positive and the stock has seen it's technical attributes uptick to a positive 2 out of 5. While not quite the 3 we like to see, we will take into consideration the fact that WEN has a decent yield of 2.47%. The stock has been quite stable through the recent volatility in the market and for accounts looking for a stock like that with a close stop loss point, WEN is one to consider as a move to 7.5 would be a double bottom and provide a stop/hedge point.
[XHB] SPDR S&P Homebuilders ETF ($29.16) - Building - Shares of XHB fell to break a double bottom a $29.0, a third consecutive sell signal and one that comes with trend already negative and the fund score now well below 3.0. The weight of technical evidence is negative here and we will continue to avoid this fund as a result. The first positive breakout would now come a $32.50.
DWA - DIF Broker
Disclaimer
WARNING
The Analyses that are on this site are not recommendations to buy or sell, so no decision should be taken without consulting your financial advisor in advance.
Dif Broker makes no exhaustive and permanent analysis to any issuer, issuing opinion solely on known technical standards.
The texts reflect the opinion of the authors and do not bind the opinion of Dif Broker.
The authors make mention of positions, direct or indirect, that may hold in the titles analyzed.
General Risks of Investments and Trading
All tradable securities, whether stocks, futures, forex or CFD's are speculative in nature and involve substantial risk of loss.
Therefore we strongly encourage you to seek private consultancy, through your financial advisor or broker, or make your independent research before taking any position based on information published here. We can not guarantee that this information is complete or correct.
You can lose money investing
Trading in shares or other financial instruments always involve risks. For this reason you should only invest the money that you have the possibility to lose.
Past results are no guarantee of future results
All investment involves risk whereby the investment decisions are the responsibility of the investor. There is no guarantee that systems, indicators and other trading signals will result in profits. Investors are advised to thoroughly understand all the risks associated with investments that claim to do.
Never invest without fully knowing the result of the worst scenario.
Dif Broker is a financial intermediary that is registered in the CMVM for the provision of consultancy services for investment, and can perform customized investment recommendations.
The information published herein are not intended to be customized, nor can be considered recommendations to buy or sell.