WEEK OF NOVEMBER 16, 2020
Market notes
After the big gap up in the market (SPY) on Monday, we saw some digetstion throughout the week with some continued strength on Friday. A lot of news driven events have been rolling out, so stay nimble, but the overall market is still leaning to the bulls.
How to read the charts
Ready-to-go setups
ADM - Archer-Daniels-Midland Company
Entry: above $50.04
Stop: $48.82
Experienced a gap-up last monday and has been holding onto gains well. Found support at the VWAP from the peak (purple oval)
Looks like ADM could retest the all-time highs (purple line) and possible work its way higher
APPS - Digital Turbine, Inc.
Entry: above $38.33
Stop: $35.51
Initial Target: $44-50
APPS experienced a strong rally two weeks ago and has been digesting those gains over the past week - pulled back to the 61.8% retracement & the rising 50-day MA
During the second half of Monday, the 5-day MA will start to flatten out and begin to turn higer as last Monday’s price action (purple oval) moves out of the 5-day MA calculation. This could get the stock moving back to the upside
We’ll want to see APPS holding above the VWAPs from the peak and earning’s low
BLDP - Ballard Power Systems Inc.
Entry: above $16.46
Stop: $15.43
Initial Target: $18.25 - $19.25
Finding support at the 5-day MA over the past few days
Range is tightening on the daily chart, consolidating at the 50-day MA
Holding above the VWAP off the all-time high
CGC - Canopy Growth Corporation
Entry: above $24.70
Stop: $23.51 / $22.51
Initial Target: $27-30
Strong rally with a pullback to the 50% retracement and the VWAP from the relevant low
Could get going above the recent highs and VWAP off the peak
A lot of the weed stocks have similar setup, but CGC has a good longer-term chart, with a rising 20 & 50-day MA and flat 200-day MA
Weed stocks have been in play lately, but consider them more on the risky side and would recommend trading smaller size
CLF - Cleveland-Cliffs Inc.
Entry: $8.52
Stop: $8.08
Initial Target: $9+
The VWAPs off the recent relevant highs and lows are converging. Combined with the flat-to-rising 5-day MA, it could be setting up a good launch pad to retest the $9.00 level and possible push through
The 200-day MA started turning higher over the last week or so
Still setting up
The following setups still need some time to develop, so entry and stop targets are areas of focus rather than exact levels
CNDT - Conduent Incorporated
Entry: $4.10
Stop: $3.80-ish
Initial Target: $4.75+
CNDT got back above the VWAP froom the gap (on the 65 minute chart), but still has a declining 5-day MA, so it’ll need some time to setup
Would like to see some consolidation near the 5-day MA with a move above the VWAP off the recent peak
The 200-day MA has started to flatten out, with a rising 20 and 50-day MA
SNAP - Snap Inc.
Entry: $41.80
Stop: $39.20
Initial Target: $45.50+
SNAP experienced a big gap on earnings and is starting to get back above the earnings VWAP. The VWAPs off the peak and recent low are also converging
By Tuesday, the 5-day MA should be flattened out and may start to rise if we see some consolidation in this area
Found support at the rising 20-day MA
WATCHLIST
AAPL - Range is tightening and the 50-day MA is flattening out. Watching the $120.53 level
AAXN - Has some VWAPs overhead to work through. Watching the $121.77 level
ADI - Consolidating after a big run. Watching the $137.16 level
ADNT - Could get going above $27.63
BYD - Casino stocks have been in play this past week. Watching the $35.51 level
CGNX - The 5-day MA will start to flatten out on Monday. Watching the $72 level
CRON - Another weed play. Could get going above $7.40 with a stop at $6.61
EXAS - Needs to get through the VWAPs off earnings & recent peak to get going, above $127.50
FOUR - Maybe above $60.50
JKS - Solar stocks have been strong, but can be tricky. Might be worth a shot above $68.74 with a stop at $62.50
MCFE - Got involved in this one on Friday at $16.70, but needs to get through $17.30 to really get going
NET - Watching $66.14
PLTR - Strong IPO. Watching the $16 level
RKT - Watching the $22.41 level. Caution as it has a declining 50-day MA
SGMS - Watching the $35.80 level with a stop at $32.30.
SHAK - Would like to see another pullback / consolidation. Watching the $80.30 level
SPWR - Another strong solar stock. Watching the $19.74 level with a stop at $19.20
TUP - Watching the $31.13 level
TWTR - Big gap down on earnings. Could try and fill the gap. Watching the $44.15 level
