ADSK, CB, CVNA, DDD, DLTR, FTCH, LLY, PXD, SPWR and TREX
| ADSK Autodesk, Inc. ($264.68) - Software - ADSK fell in early trading Thursday to break a double bottom at $260. This 2 for 5'er moved to a negative trend in November and ranks in the lower half of the software sector RS matrix. The technical picture is negative and once again weakening. Long exposure should be avoided. Additional support may be offered at $252 and $248, while initial overhead resistance is seen at $284. |
| CB Chubb Ltd ($197.98) - Insurance - CB broke a spread triple top at $198 for a second consecutive buy signal and a new all-time high on the chart. The stock is a 3 for 5'er that ranks in the top third of the Insurance sector matrix and is accompanied by a yield of roughly 1.6%. Okay to consider here on the breakout. Initial support lies at $186 with additional support at $180, the bullish support line. |
| CVNA Carvana Company ($190.83) - Autos and Parts - CVNA broke a double bottom at 194 on Thursday before tumbling lower to 186. This stock is an unacceptable 0 for 5’er that has given three consecutive sell signals since December. Avoid as supply is in control and the weight of the evidence is extremely bearish. |
| DDD 3D Systems Corporation ($20.14) - Machinery and Tools - DDD fell Thursday to break a double bottom at $20 before dropping to $19.50 intraday. This 0 for 5'er moved to a negative trend in October and ranks 64th out of 65 names in the machinery and tools sector RS matrix. Long exposure should be avoided. Note that the stock is at support from last May while initial overhead resistance may be seen at $24. |
| DLTR Dollar Tree, Inc. ($142.89) - Retailing - DLTR broke a double top at 144 on Thursday. This marks the retailing stock’s fourth consecutive buy signal. From here, support sits at 134 while DLTR faces resistance at 148. |
| FTCH Farfetch Limited Class A ($29.76) - Retailing - FTCH is an unacceptable 0 for 5’er within the unfavored retailing sector that broke a double bottom at $28 today, marking the stock’s fourth consecutive sell signal. Avoid as supply is in control and FTCH does not have any positive technicals in its favor at this time. |
| LLY Eli Lilly and Company ($260.14) - Drugs - LLY shares moved lower today to break a double bottom at $260 to mark its first sell signal. This 5 for 5'er has been in a positive trend since December of 2020 and on an RS buy signal versus the market since August. LLY is trading near the middle of its trading band with a weekly overbought/oversold reading of -2%. From here, support is offered at $240. |
| PXD Pioneer Natural Resources ($198.33) - Oil - PXD continued higher on Thursday, taking out resistance at $196, its 2021 high. PXD is a 5 for 5'er and ranks in the top half of the oil sector matrix. From here, support sits at $180. PXD carries a 1.2% yield. |
| SPWR Sunpower Corporation ($19.25) - Electronics - SPWR moved lower Thursday to break a double bottom at $19, marking a second consecutive sell signal and a new 52-week low. This 0 for 5'er moved to a negative trend in December and ranks in the bottom quintile of the unfavored electronics sector RS matrix. The weight of the evidence is negative here and continues to weaken. Long exposure should be avoided. Further support may be found at $18.50, while initial overhead resistance is seen at $22. |
| TREX Trex Company, Inc. ($123.54) - Building - TREX broke a double bottom at $124 on Thursday, resulting in a second consecutive sell signal. The stock maintains a 5 for 5 rating and high placement in the favored building stock sector matrix, but given the near-term absolute weakness, we would not advocate for new exposure at this time. The next level of support is distant, located at around $104. Demand would reenter the picture with a breakout at $138. |
