Good evening readers. Below, are some of the most requested charts over the past few days. The bulls made a nice run this morning only to falter later in the day. We still need to break the 200-day MA in the S&P 500, which is about 1108. If we can do that, it will be easier to embrace the bulls and we should see more dip buyers joining in, out of fear they might miss out on gains. However, today I saw many bullish analysts turn short, so be prepared for some downside risk before we attempt to test the 1108 resistance again. Keep that in mind when viewing the charts, as a major selloff could overrule the indicators, no matter how bullish they appear.
Jamba Juice (JMBA)
A/D line: Positive, recently flat but starting uptrend again. bullish
ADX line: Signaled buy today but the trend is weak, needs more time to build. bullish
MACD: Signaled buy today, which confirmed the signal in the ADX. Very bullish due to the dual confirmation
CMF (21): Positive almost the entire past 3 months but not a strong positive. above .5 would be very bullish. positive nonetheless but has been weakening lately. This could be a lead indicator on a selloff. Therefore, watch closely, intraday, but use the CMF (15) for anything smaller than daily intervals.
OBV: Confirmed all moves in the PPS, normal
RSI: Neutral territory closer to oversold territory. This means lots of room to run on a breakout north.
200-day MA is likely good support as it was never truly tested.
100-day MA was resistance that was broke last week…bullish
Resistance: $2.80
Analysis: I’m holding a position overnight and if the market doesn’t selloff Tuesday morning, we could see another gap-up in JMBA. The CMF (21) concerns me though, as it traded poorly most of the afternoon today, along with the PPS. The long green line around $2.80 is the current resistance, which we failed to break today. Even though we faltered later in the day, the key point was that we closed green and never went below the open price. Be wary though, 51% of the shares traded today, per Finra, were shorted. If we can catch them with a surge of buying volume, we could see a short squeeze, taking us to very nice levels. Make sure you watch this one closely as in an uncertain market, this is not a slam-dunk trade.
Verde Media (HMIT) (aka Hidalgo Mining)
A/D Line: Long uptrend showing strong accumulation.
ADX: Finally signaled a buy today but needs time to create a new strong trend
CMF (21): Almost all positive over the past 3 months. .5 or higher is very bullish
MACD: The lagging indicator right now which is showing bearish signals. Needs to confirm the ADX buy signal if the chart will make a nice run
OBV: Did not confirm the PPS moves down in a strong way. Therefore, showing strength even when the PPS falls
RSI: Neutral territory closer to oversold territory
Support: (straight red line on chart) .001
Resistance: (straight green lines on chart) .0017
Analysis: The ADX line signaled buy today, which is a strong indicator when seeing the very strong A/D line. However, the MACD is lagging far behind and needs to signal buy, which should create a strong run up. If the MACD does not turn around, it could be the lead indicator that this attempt will fail. I liked the chart enough to jump in myself and currently have a long trade in HMIT.
Verizon (VZ)
A/D Line: Recent uptrend but trend is not strong yet.
ADX: Recently signaled buy
CMF (21): Positive but not strong. Positive nonetheless
MACD: Already signaled buy, which confirms the ADX, and should continue a nice uptrend
OBV: Confirmed all moves, normal
RSI: In neutral territory.
Analysis: It looks like VZ just signaled a buy and this should be its run-up to the dividend in July. If you look at the ADX signals in VZ, every buy signal starts a new trend leading up to the dividend. The day after the dividend, the price falls and goes into a downtrend. VZ may not make people rich but in an uncertain market like this, it becomes much more valuable. I will be looking to add a position.
As always, do your own homework to see if you agree and join our live stock market community chatroom, if you have questions. Good luck out there.
Mike
At the time of publication, Kudrna was Long HMIT and JMBA but positions may change at any time.
