Analyst commentary includes: ALK, AMBC, AN, BID, BOH, LL, MDSO, MPC, MRCY, and NXST.
| Comments |
|---|
| ALK Alaska Air Group Inc ($83.76) - Aerospace Airline - ALK broke a double bottom at $83 marking its fourth consecutive sell signal. This breakdown is noteworthy as well since it violates the bullish support line. Those still long may look to exit positions on this breakdown since supply has taken control of the stock. No new positoins at this time. Look to avoid ALK moving forward unless its technical picture is able to turn around. |
| AMBC Ambac Financial Group, Inc. ($17.06) - Insurance - AMBC broke a spread triple bottom at $17 and fell further to $16.50. This move broke the bullish support line, flipping the trend negative and downticking the stock to an unacceptable 0 for 5’er. Monthly momentum has been negative for three months, suggesting the potential for further downside from here. Additionally, AMBC ranks 61st out of 74 names in the Insurance sector RS matrix. Supply is in control and the weight of the evidence is negative. Avoid. The next level of support is at $15 while resistance is at $20. |
| AN Autonation Inc. ($39.50) - Autos and Parts - On Thursday, AN broke a triple bottom at $39, a new 52 week low. This move broke through the bullish support line, flipping the trend negative and downticking this stock to an unacceptable 0 for 5’er. Monthly momentum just flipped negative after being positive for four months. Additionally, AN ranks within the bottom decile of the Autos and Parts sector RS matrix, adding to the negative technical picture. Avoid as there is no remaining support on the chart. Resistance is at $45. |
| BID Sotheby's ($50.24) - Retailing - With the most recent market action, BID broke a double top at $50, marking a new 52 week high as well as the third consecutive buy signal on the chart. BID is an acceptable 3 for 5’er within the Retailing sector that just had a weekly momentum flip back to positive, suggesting the potential for further upside from here. The technical picture is positive here. Okay to buy or hold here. The first sign of trouble comes with a move to $43, a double bottom sell signal. |
| BOH Bank of Hawaii ($80.66) - Banks - BOH broke a double bottom at $80. This breakdown is notable as it violates the bullish support line. As a result, the stock will become a 3 for 5'er. Traders may sell on this breakdown, while investors may wish to see if it can hold support at $78 before exiting. No new positions at this time. |
| LL Lumber Liquidators Holdings Inc ($25.15) - Building - LL broke a double top at $25, a new 52 week high as well as the second consecutive buy signal on the chart, confirming that demand is in control. LL is a perfect 5 for 5’er as it is trading in a positive trend and is showing significant strength relative to the market and its peers. Additionally, this stock ranks #1 in the Building sector RS matrix, making it the strongest name within this favored space. LL has a price target of $42.50, offering a reward to risk ratio north of 3, assuming a stop at $19. Okay to hold here or buy on a pullback as the stock is overbought here. The first sign of trouble comes with a move to $19, a double bottom sell signal. |
| MDSO Medidata Solutions, Inc. ($71.15) - Software - MDSO broke a double top at $70, marking a new all-time high on the chart as well as the fourth consecutive buy signal on the chart. MDSO is a strong 5 for 5’er that is showing near-term strength relative to the market and its peers. Monthly momentum has been positive for three months and the bullish price objective is $79, both suggesting the potential for further upside from here. Okay to buy or hold here as the stock is trading above the top of the 10 week trading band. The first sign of trouble from here comes with a move to $63, a double bottom sell signal. |
| MPC Marathon Petroleum Corp. ($52.92) - Oil - MPC broke a double top at $53 on Thursday, completing a bullish triangle pattern on the chart. This stock is a strong 4 for 5’er that ranks within the top decile of the Oil sector RS matrix. Weekly momentum has been positive for three weeks, suggesting the potential for further upside from here. Demand is in control and the weight of the evidence is positive. Okay to initiate new positions on the breakout. The first sign of trouble comes with a move to $47, a double bottom sell signal while move to $45 would violate the bullish support line. Resistance is at $54. Note this stock has a yield of 2.72% attached to it. |
| MRCY Mercury Computer Systems Inc ($41.17) - Computers - MRCY broke a triple top at $41. This marks a new all-time high for the stock. The 5 for 5'er ranks in the top ten of the favored Computers sector matrix. The weight of technical evidence is positive allowing for new positions to be initiated on this breakout. The first sign of trouble comes with a move to $36, a triple bottom break. |
| NXST Nexstar Media Group Inc. ($60.48) - Media - NXST is trading in a negative trend and with the most recent action, broke a double bottom at $60. This is the third consecutive sell signal on the chart for this 3 for 5’er, confirming that demand is in control. Monthly momentum just flipped negative, suggesting the potential for further upside from here. Avoid as the weight of the evidence is skewed negative. The next level of support is at $57 while resistance is at $64. |
