Having broken below the 50 day moving average - MCD has now descended to the 200 day and also, pushed below the lower Bollinger band, stretching the range. What now for this stock? Will the 200 day moving average act as support or will the bears claim the day? On the six month chart, we see the stock at the 200 day and threatening to re-enter the longer term down channel that claimed MCD for most of the last year. A look at the one year chart shows more detail. The stock broke out of the down channel and got caught in a wedge formation after doing so. A break to the downside out of that wedge tells me it's likely the 200 day will not hold. However, likely isn't fact. Watch that red line in the sand. A break below it will put the stock back into that down channel. Current MCD rating = HOLD
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Google now approaches the recent lows of its trading range. Does this present a buying opportunity or is it a sign of more weakness to come? The chart tells us Google has been in a topping pattern for quite some time, putting in a series of lower highs and lower lows over most of the last year. However, there was a bright spot of strength lately that is being tested with the most recent sell-off. Will the bulls return fire or will the bears manage to drive the stock back towards 500? I believe Google is a buy in this range AND it might go lower. So don't spend all your buying power in one shot. Watch for 531. If that breaks, we'll see more weakness. Short term rating BUY Long term rating BUY To the charts On the first chart you can see Google is pushing away from the moving averages. This action will soon put a stop to the rise of the 50 day and break the momentum that had been re-established. On the second chart we see Google has broken the 50 percent Fibonacci Retracement of the recent move to 582. In addition, Google is trading at the lower ends of its Bollinger Bands - and extending the range downward. All of this tells me the stock could see lower pricing.
It's not secret I've been bearish on oil for a while, advising people sell oil short for months. However, with USO now holding for a few sessions above the 50 day moving average - the time to end those shorts has arrived. I don't know if oil will continue to rise, but I do pay attention to moving averages more than guesses and hunches. Watch that blue line for opportunities to re-apply a short position in oil. If the blue line fails once again, game on.
For now - HOLD on USO. #COP continues to rise as crude oil seeks to achieve a short term bottom in pricing. Oil seems to be holding 50 and oil stocks have rallied. If you are one of those that bought COP near its low of 60, congratulations. You have seen a nice return and will still be paid an excellent dividend. Applaud yourself for spotting a good value.
To those wondering if it's too late to get into this stock, just take a look at the volatility over the last few months - I'd be very surprised if you didn't get another chance to buy below 68. Rating - short term HOLD Google is selling off today in early trading, moving down to the tune of 2 percent. I predicted last week that 541 would be breached and it's happened. Those that have been waiting for another shot at better pricing - today might be a day to add Google to your list.
The question is - might there be more downside to this sell-off and should an investor wait to pull the trigger? My answer is you shouldn't be looking to buy in one big chunk. Say you were looking to invest 10k dollars into Google. You shouldn't buy all 10k at once. Buy in 2500 dollar chunks over a span of a few trading sessions. Don't try to time the market. That's a fool's errand. Simply try to get decent prices for quality stocks. Rating = BUY Since hitting a high of 133 in mid March, Apple has traded in a consolidation pattern for the last month. However, one can see from the chart that the rising blue line of the 50 day moving average is lifting the stock. Will this be enough to break this mini- range that formed after the recent high? And more importantly for investors out there - is this a time to buy Apple?
I do not know if this range will break to the upside. Apple is still far away from its 200 day moving average, much too far for me to advise buying at this point because stocks always tend to revert to the means of the moving averages. That said - and I've said it before, Apple is a special case. Due to the sheer amount of cash on its balance sheet - any investment in this company is safe in the short/intermediate term due to its ability to buy back its own stock. The dividend isn't much however and I don't see crazy amount of upside, so don't rush into Apple here. HOLD is my rating. Google off in early trading. Watch for a buying opportunity - Anything below 545 is a signal to enter the stock if you don't already have a position. If you do already own shares, I'd wait for lower than 545. Watch that recent low of 541. If that gets tested, watch for a bounce.
Google has run from 541 to 548 and some may ask, did I miss my chance to buy. The short answer is Google is still below the 50 DMA and that's a signal the stock isn't out of the woods yet. However, that 50 Day *IS* rising and will soon collide with the 200 day. What happens then will decide the short term momentum. Incidentally, earnings are almost here. A big moment draws near.
If you have no position in Google, I'd wait. HOLD is my rating. After hitting a recent low of near 60 dollars, Conoco Phillips has broken out to the upside and eclipsed the 50 day moving average. Can this trend continue? To know - follow the price of crude oil, which seems to have reached a short-term bottom. If oil stabilizes, COP will continue to rise.
Oil is stuck around the 50 dollar mark per barrel and Conoco Phillips can't get above it's moving averages. The stock does pay a decent yield, so buying at these levels isn't a terrible idea, but due to uncertainly of oil prices - I rate this stock a HOLD.
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