Analyst Commentary. Includes: ADBE, BAC, CHTR, CRI, GOOGL, HAS, HD, NFLX, SHLD, and WBA.
| Comments |
|---|
| ADBE Adobe Systems Incorporated ($88.80) - Software - While the technical attributes of ADBE are holding up, the trend is faltering and that is enough to warrant at least scaling back. On Friday, ADBE gave a second sell signal, a spread triple bottom at 87. This breakdown follows a violation of the bullish support line at 88. The next support is the 80-81 area which is also the bottom of the ten week trading band. |
| BAC Bank of America ($14.46) - Banks - Like many stocks here, we look at breakdowns and then look to see where the next support levels can be found. In the case of BAC, it is holding up on a relative basis as the technical attributes are a 4 out of 5. The recent breakdown at 14.5 is a tripe bottom but there is support at 14.50 so holders of this one can give it some room to 14 which violates all near term support. The next support after that is 10.50, the bullish support line. |
| CHTR Charter Communications, Inc. ($164.45) - Internet - CHTR reversed down into a column of O's and fell to the $164 level. With this move, CHTR violates the support at $168. The next level of support for CHTR is at the August correction low of $162. Any move below the correction low level would warrant further defensive action. Avoid any new exposure for now. |
| CRI Carter's, Inc. ($89.36) - Textiles/Apparel - After hitting resistance at $94 for the third time in the past four months, CRI reversed down and has now fallen to the $89 level. This move breaks a double bottom and violates the bullish support line at $89. From here, CRI will become a 3 for 5'er in attribute reading. Okay to hold here, but look to begin to trim on any further violations of support. From here, notable support for CRI resides in the $83 to $87 range. |
| GOOGL Alphabet Inc. Class A ($710.49) - Internet - GOOGL broke its bullish support line this week dropping the technical attribute score to four. Given the defensive posture we have taken in this market, we would look to use this development as a sign to trim or at least hedge. The chart sits at $704 with next support at $672. The August, 2015 low rests at $568. |
| HAS Hasbro, Inc. ($72.07) - Leisure - HAS broke a quadruple top to give a buy signal at $72. This move also tests the bearish resistance line. Should the stock move to $73 on the chart, the trend will reverse to positive and the technical attribute rating will rise to a 3 for 5'er. Weekly momentum just turned positive suggesting the potential for further movement to the upside from here. Note the yield of 2.55% as well. This is one to add to watch lists. |
| HD Home Depot, Inc. ($118.88) - Building - The technical attributes of HD continue to be very strong and on a relative basis, this stock continues to do well. On an absolute price basis, HD has given a sell signal, a double bottom at 118. With more support in the 112 to 108 area, we would be inclined to give HD a little room here and use a violation of that support area as a stop loss point. |
| NFLX NetFlix Inc. ($104.04) - Internet - NFLX has given three consecutive sell signals since its November 2015 high at $132, and after a series of lower tops and lower bottoms, the chart rests now at $102. However, the stock maintains all five positive technical attributes and would need to fall substantially to $79 to break trend. For more near-term support we would look to the $97 level and any violation of this level of support would potentially warrant defensive action. |
| SHLD Sears Holdings Corporation ($17.00) - Retailing - Retailers have been struggling of late and SHLD is no exception. The stock violated its bullish support line at 38 in June of last year and has continued to give sell signals. In fact, the sell signal at 17 in January was the fourth consecutive one. No visible signs of support here and would continue to avoid or move to the sidelines if long. |
| WBA Walgreens Boots Alliance Inc. ($79.93) - Retailing - WBA completed a bearish catapult by falling below the $79 level. WBA recently violated its bullish support line earlier in January at $81. With recent action, WBA now sits on the November low support level at $79. From here, those holding WBA should look to take defensive action upon the violation of support at $79. On the longer term side of the spectrum the August correction lows remain intact as viable support levels, but any move below the correction lows at $77 should present further evidence to take defensive action. |
