Note: I’ll be out of the office late Thursday and Friday, so no report on Friday, nor Video Thursday or Friday, but all will resume Monday. Have a nice weekend!
Granny Shot Stock List with Support and Resistance
(ST= Short-term, IT=Intermediate-term)
Abbott Labs (ABT 0.45% - $106.21) Attractive to buy following a 21% decline over the last seven months as it’s thought that ABT 0.45% has started its stabilization process and should begin a rally back higher in the near future. At present, a short-term downtrend from late December remains intact which has held two of ABT’s recent rally attempts. Overall, it’s important to relay that while ABT 0.45% has declined over 20% in recent months, the stock has only given back 38.2% of its rally from late 2016, a key Fibonacci level that’s thought to be very good support. Key level to exceed lies at $112 and getting over this would suggest this decline has run its course. On the downside $101 is important to hold on pullbacks, as below would have little real support until near $90, which is the 50% retracement of the stock’s five-year uptrend. Bottom line, ABT 0.45% remains in a very attractive sector, and it’s difficult to view recent weakness as anything more than a temporary pullback as part of its longer-term uptrend.
Autozone (AZO -0.73% - $2182.37) Near-term bullish as part of a neutral period of consolidation that began in late December 2021. AZO has been extraordinarily strong in recent months, having avoided much of the carnage that’s affected many other retailing names. At present, AZO lies within striking distance of all-time highs on a weekly close and is expected to push back to new high territory in the months to come. While some evidence of weekly negative momentum divergence happened into April 2022 peaks, the decline into May barely breached February 2022 lows, showing hardly any real damage. Until greater evidence of trend deterioration starts to occur, AZO remains quite attractive technically, and is considered one of the best stocks within the entire Consumer Discretionary sector. Until/unless this breaks May lows near 1703, this is considered a strong overweight within Discretionary, and upside technical targets lie near 2400.
Biogen (BIIB -0.03% - $218.80) Attractive to own on an intermediate-term basis following its successful bottoming out near two major intermediate-term lows that have held over the last six years. BIIB -0.03% bottomed back in June 2016 along with March 2019 between 205-215 and weakness into 2022 barely undercut this support zone before pushing back above in recent weeks. The act of having reclaimed such a prominent level of lows is thought to be important and positive technically, and BIIB -0.03% definitely looks to have begun its bottoming process, not unlike what happened near those prior lows. Its rally over the last 3 of 4 weeks has carried the stock up to the highest weekly closing levels since February and it’s expected that Biogen should push up to $254 into September, with intermediate-term rallies expected to eventually reach $295. In the weeks to come, minor pullbacks are possible in the short run, but are expected to hold recent lows near $187 and provide excellent buying opportunities for Dip buyers.
Genuine Parts (GPC 0.69% - $137.14) Attractive technically given very little evidence of any real trend deterioration. GPC’s early year pullback proved brief, lasting around a month before turning back higher and has successfully logged three out of four positive months during a very challenging time for retail stocks. GPC 0.69% is technically similar to AZO -0.73% in having weathered this difficult time for Equities and now looks to be setting up for an upcoming challenge of all-time highs in the weeks/months to come. Key resistance lies at $143, then $150, while support is found at $129, then $115. Only a decline under $115 would postpone GPC’s push back to new highs, and it’s right to own GPC 0.69% and consider this to be a top technical holding within Discretionary. While weekly momentum has lost some ground in the last few months on GPC’s stalling out, this has not served as a sufficient warning sign to avoid owning this at current levels. Overall, GPC 0.69% looks quite appealing to own for a push up to $150 in the months to come.
Intuitive Surgical (ISRG 1.12% -$208.81) ISRG’s recent bottoming out near its 50% absolute and relative retracement of its long-term advance looks significant and could mark an area of major support which should result in a rally into the Fall. Weekly momentum officially reached oversold levels per RSI last month and ISRG 1.12% looks to have made two equal waves of price from late December that bottomed out nearly four weeks ago. Rallies are expected in 2H 2022 which should face initial resistance near $254, but above that would argue for a push up to $279 which looks important on rallies. Any pullback in the weeks ahead should find strong support near $186, but any weakness back under $195 into late July should translate into a great risk/reward area to buy dips for the start of an intermediate-term rally.
Meta Platforms (META 0.57% - $170.88) Despite being down over 55% from last August’s peaks, META 0.57% has not shown sufficient stabilization to think this has officially bottomed. While many routinely think of META 0.57% as being “cheap”, this continues to trade within an ongoing downtrend from April, and the breakdown back down to new lows into June keeps this trend bearish and devoid of much stabilization. In the short-run, further weakness into late July looks likely which could take META 0.57% down to $150 or even lower to $137-140 to challenge prior lows from March 2020 before this can bottom out. On the upside, recovering the area of the breakdown at $176 would represent the first step towards thinking META 0.57% can begin a larger rally. Its wave structure looks to be in the final stages of the decline, which suggests that a meaningful low could come about in the next 2-4 weeks. However, exhaustion signals based on DeMark indicators look early by at least four weeks before signaling any sort of weekly TD Combo “13 countdowns”. Until META 0.57% can either reach more material areas of technical support near prior lows, or trigger DeMark weekly exhaustion, than owning this at current levels might be a bit premature in expecting immediate rallies until/unless this regains the preferred $176 area. Such a rally would break intermediate-term downtrends as well, offering more conviction about a more meaningful low in place.
Moderna (MRNA -0.30% -$176.23) Near-term trends look bullish and further rallies appear likely to levels near March 2022 peaks at $188 which might provide initial resistance to this rally. Following four straight weeks of gains, MRNA -0.30% looks to have finally begun its bottoming process after having lost a stunning 76% off August 2021 peaks. Momentum has begun to stabilize in recent months, and indicators like MACD have made bullish crossovers based on the extent of its recent push back up to multi-month highs. While MRNA -0.30% has gotten a bit overbought on daily charts after its rally in the last month, pullbacks likely won’t get below $151 before turning back higher for a more meaningful advance. One should look to position long, looking to buy dips when given the chance in the weeks to come with key areas at $159 and then $151. Above $188 would target $206, but eventually should allow for a move back to $261, and then $305 which is a 50% retracement of the decline from last year.
Regeneron (REGN -0.33% -$621.57) REGN -0.33% looks quite attractive following its rally back over prior May lows near $597.76 in recent weeks. While Regeneron did drop more than 10% off April peaks this year, this has defied the patterns being seen over much of the Biotech space, and just pushed back to new all-time highs three months ago. The act of having exceeded 2015 peaks is seen as a very positive intermediate-term development, and should drive the stock higher to levels near $747 and then $833 which would represent a 100% alternative extension to the rally which began back in 2019. In recent weeks, the specific act of having recovered May lows makes these two waves from April peaks almost exactly equal at a price of $551, and should result in a rally back to new all-time highs in the back half of 2022. Technically, REGN -0.33% is quite positive, and it’s right to own this, looking to buy all pullbacks with recent lows near $583 likely not being undercut on any late month weakness.
All prices reflect closing prices as of Wednesday, 7/13/22
