Daily Technical Strategy Video (3/20/24)
Upticks – Newton’s Law
(New Additions in Bold)
4 New Additions
- MSTR -7.59% – MicroStrategy Inc
- ORCL 0.99% – Oracle Corp
- FCX -1.29% – Freeport-McMoRan Inc
- TSLA -0.89% – Tesla Inc
Upticks Commentary (Commentary on all 16 names)
Netflix (NFLX – $627.69)
Rally to test all-time highs is ongoing
Support- $530, Resistance- $661, 700
Rally in NFLX -0.52% has grown more parabolic since early 2024, and rally up to $700 looks likely
No evidence of deterioration has occurred in recent weeks
Former all-time highs looks like first meaningful resistance target, though 661 might prove temporarily important
Amazon.com (AMZN – $178.15)
Rally to test all-time highs and exceed this level likely
Support- $146, Resistance- $190, 210
Rally back to test all-time highs is ongoing, and push up to $190 likely without much resistance
Overbought conditions have not resulted in any deterioration
AMZN 0.75% has begun to show some relative strength vs. other Magnificent 7 names, as it shows mean reversion back higher. An eventual push above 190 is likely up to 210
Tesla (TSLA – $175.66)
Tesla has shown the first steps towards bottoming. Shares look attractive from a counter-trend perspective for gains in the months ahead
Support- $152, Resistance- $183, 245
TSLA’s ability to have recaptured former lows from February is an encouraging first step towards bottoming out
While TSLA remains intermediate-term bearish structurally, this shows an excellent likelihood of bottoming out based on cycles, oversold conditions and DeMark exhaustion signals
Cycle composite projections on TSLA -0.89% show this rallying sharply in the months ahead
Climbing above $183 will be the second technical sign of structural improvement following the stock having recaptured last month’s lows. The ability to break its downtrend from late 2023 should help this rally up to $245
American Express (AXP – $277.91)
Quite technically attractive despite recent breakout to overbought levels
Support- $200, Resistance- $245, 262
Quite bullish structurally, despite being overbought after five straight months of gains
Ability to have pushed back to new all-time highs resulted in acceleration above 220 and should help this reach 245 before some minor consolidation.
AXP 1.38% joins V 3.00% and MA 1.70% back at all-time highs and this remains a very bullish part of Financials sector
Pullbacks, if/when they occur, should find strong support near $200
Berkshire Hathaway (BRK/B – $416.11)
Cup-and-Handle breakout has allowed BRK.B to accelerate
Support- $375, Resistance- $450, 462
BRK-B -0.01% .B broke out of a large two-year Cup and Handle pattern in early 2024 which has helped prices accelerate higher.
Despite overbought momentum, BRK.B has shown no evidence of any deteriorating momentum or negative divergence that would warn of potential trend failure.
Any consolidation into May likely finds strong support near $375 while further gains are likely in the weeks/months ahead up to $450
Intuitive Surgical (ISRG- $390.37)
Large base breakout bodes well for intermediate-term gains
Support- $360, Resistance- $435, 504
Breakout back to new all-time highs above a large base which has been building since late 2021 bodes well for intermediate-term gains for ISRG -0.49%
Recent churning following ISRG’s breakout doesn’t appear too bearish, but should pave the way for further gains as Healthcare turns up into the bullish period of June/July
Minor consolidation would likely find strong support near $360 and make this an even more attractive risk/reward opportunity
Eli Lilly (LLY- $772.86)
Ongoing parabolic rally looks difficult to fight
Support- $630, Resistance- $850, 1000
Early year upward acceleration in LLY -6.51% keeps this uptrend very well intact and likely can lift this to $850 with intermediate-term targets at $1000
Pullbacks from extended conditions, while not anticipated right away, should provide solid support as part of this ongoing uptrend
Difficult to sell based on overbought conditions alone, and attempting to avoid based on overvaluation and/or overextended reasons have both proven to be failures
Vertex Pharmaceuticals Inc. (VRTX – $412.11)
Recent consolidation should prove buyable
Support- $385, Resistance- $503, 558
10% decline over the last month in VRTX 1.00% did little to disrupt VRTX 1.00% ongoing bullish intermediate-term pattern.
Recent consolidation has helped to alleviate near-term overbought conditions and has pulled back in a three-wave pattern
Axon Enterprise Inc. (AXON – $314.28)
Late 2023 Reverse Head and Shoulder breakout proved important and bullish
Support- $280, Resistance- $340, 360
Despite a lengthy rally from mid-2022 to challenge all-time highs from 2021 into early 2023, it was the three-year Reverse Head and Shoulders pattern breakout that has helped AXON -0.71% accelerate
While weekly momentum has become quite stretched, this act of having risen parabolically is quite constructive to the intermediate-term momentum and keeps this trend very much intact
Copart Inc. (CPRT – $56.90)
Continued higher highs and higher lows is bullish
Support- $52, Resistance- $61, 67
February’s breakout has led CPRT 0.23% higher for five straight weeks, helping this approach initial targets at $61.
While near-term momentum has grown extended, this acceleration is also a very bullish technical development. CPRT continues to show excellent momentum and has exhibited little to no evidence of weakness
TransDigm Group, Inc. (TDG – $1214.98)
Push back to new highs keeps intermediate-term uptrend intact
Support- $1010, Resistance- $1243, 1300
Early 2023 breakout of TDG -0.49% three-year base helped this nearly double in price
Trends have grown more parabolic since late 2023 but still looks apt to reach targets near 340, then 360.
Arista Networks (ANET- $296.58)
Triangle breakout bodes well for even more gains
Support- $246, Resistance- $300, 325
Recent churning in ANET was not unlike other areas of Technology, but its push back above triangle resistance is thought to be bullish technically
Triangle breakouts often can lead to immediate acceleration, and I expect ANET -2.13% to likely push up to 300 in the near future, with intermediate-term levels at $325
MicroStrategy (MSTR – $1546.52)
Recent consolidation from $1800 should spell opportunity
Support- $1070, Resistance- $1927, 2090
Recent pullback held Ichimoku support and now should push back higher into mid-April as Cryptocurrencies start to stabilize and rally
MSTR maintains very bullish intermediate-term momentum and a lift back to new highs looks likely
Oracle (ORCL- $129.24)
Breakout back to new all-time highs bodes well for further gains
Support- $117, Resistance- $140, 165
The act of just exceeding prior peaks from Spring 2023 bodes well for a continued push higher to $140, in my view, then intermediate-term technical resistance near $165
ORCL 0.99% recent base from May 2023 was successfully built on top of another base and held support near former highs from late 2021. This week’s breakout bodes well for near-term acceleration
Western Digital (WDC- $60.72)
Pullback in recent weeks represents appealing risk/reward opportunity
Support- $54, Resistance- $72, 78
WDC -2.20% has gradually been improving in relative strength and 2024’s minor upside acceleration bodes well for further gains in the weeks and months ahead.
Minor pullback from the mid-$60’s did little technical damage and WDC looks to be holding trendline support.
A coming rally back to $72 looks likely with intermediate-term resistance found near $78
Freeport McMoran (FCX – $46.01)
Year-long consolidation breakout bodes well for FCX gains as Copper rises
Support- $42, Resistance- $52, 65
FCX -1.29% just exceeded a lengthy consolidation which had been ongoing since mid-2022. This is bullish for a coming rally to test and potentially exceed 2022 peaks.
FCX breakout happened coinciding with the breakout in COMEX Copper. Further gains look likely to $52, while movement back to new all-time highs would likely rally to $65.
Upticks Deletions
- DKNG 0.44% – DraftKings Inc
- AMD -10.93% – Advanced Micro Devices Inc
- DPZ -0.52% – Domino’s Pizza Inc
