Top Story

S&P500: The Long And Short Of It | Cisco, Welltower, Applied Material

Welltower Inc CFD/DFT: The stock remains in a strong uptrend and is now consolidating just beneath record highs. The 20-day eMA is holding as support and we’re now watching to see it can break out of compression to new highs. Given trend strong trend and the fact it has had time to consolidate just below the high means this could be of interest to momentum traders on the daily and intraday timeframes.

  • A break above 92.50 assumes bullish trend continuation. Ideally a break will be seen on higher volume, or traders could wait to see if we see a daily close, or 92.50 is respected as support before committing.
  • An open target could be used as a breakout would be new record highs.
  • A break below 90.35 signals mean reversion, although the bullish trendline is also nearby to provide potential support.
  • A break of the trendline could be taken as a sign a deeper correction could be underway.



Applied Materials CFD/DFT: The bullish trend is less established than Welltower’s, yet a cup and handle continuation pattern has caught our eye. Prices have found resistance just below 52.60 and the two recent higher lows are what form the cup and handle components. Moreover, the 50-day eMA acted as support ahead of the latest leg higher. Of course, it’s possible resistance could hold for a while long, in which case look for the pattern to morph into a continuation pattern such as an ascending triangle. But ultimately, we’re looking for a breakout above resistance.

  • A break above 52.60 assumes bullish trend continuation. If it breaks higher without a retracement prior, then it confirms the cup and handle pattern.
  • The bias remains bullish above 48.78. If we see a pullback from the highs, we’d seek a higher low above 48.78 to show bullish pressure continues to build.
  • Whilst the pattern projects an initial target around 60, swing highs around 56.94 and 58.40 make viable interim targets.


Cisco Systems CFD/DFT: It’s far from perfect as we’re unable to draw an ideal neckline, yet the formation screams head and shoulders top. As the trend is clearly bearish, the H&S is now a continuation pattern which could target the 41-42 area if successful.

The fact we’ve seen two notable gaps lower since the post-Nasdaq bubble highs suggests the downtrend could still be within its infancy. And we especially like how the ‘head’ has closed the gap before turning lower, with the 200 and 50-day eMA’s capping as resistance and providing a death cross (a dramatic name for the faster average closing beneath the longer one).

  • The near-term bias remains bearish whilst prices hold below 48.13
  • A break below 46 assumes bearish trend continuation
  • With the H&S targeting the 41-42 area, traders can use round numbers as interim targets, or simply keep an open target towards the 40.25 low

 

Price Action Update: It's A Fine Line Between Bullish & Bearish on S&P500 | Apple, Netflix

Apple Inc CFD/DFT: After breaking out of its small correction line, prices reversed yet found support at the lower channel before accelerating high. Going on to close to fresh record highs on Friday, a small bearish hammer has formed to warn of near-term exhaustion. Still, as the trend remains bullish we’ll continue to seek opportunities to buy dips after prices have had a chance to consolidate or correct.

Netflix CFD/DFT: Prices have rebounded a little further than we’d hoped and now closed above the 275.80-282.66 resistance zone. However, the trend structure remains bearish and yesterday’s bearish hammer remains below the 50-day eMA. With earnings due for release tomorrow, we’re keen to see if it can roll over once more in line with the bearish bias or threaten the trend with a break above 305.

 

Related analysis:
Big U.S. banks fight Fed cuts to grow earnings
Earnings Guidance will be Watched Closely
FTSE Pauses At Resistance | CWK, CTEC, IMB
Stock Indices Weekly Technical Outlook: Bulls Rescued By Verbal Mini Trade Deal
S&P 500 Earnings Season Preview: Risks Abound!

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT