Time to buy Apple, Amazon and Netflix?
These leaders can give important signals about the broader market. With one of their charts showing a bottom, investors should take notice.
- The decline took AMZN back to the early-2011 highs, line a, as well as the uptrend, line b. AMZN had higher lows on Tuesday and closed up for the day
- The upside targets from the trading range breakout (line a) are in the $220-$225 area
- The RS analysis indicates that AMZN is outperforming the S&P 500, as it broke through resistance (line c) in late April. The RS is above its long-term uptrend, line d, that goes back to the 2008 lows
- The RS made a new high last week with prices, which is positive
- The daily on-balance volume (OBV) also confirmed the new highs and shows a bullish pattern, as it surpassed resistance at line e
- If this week’s lows are violated, there is further support between $181.50 and $186
- NFLX has developed a narrow trading range over the past two months, with good support, line g, now at $224.41-$225.30
- Initial resistance stands at last week’s high of $249.62 and then at $254.98-$258, line f
- The daily OBV has been diverging since the November 2010 highs, as it shows a pattern of lower highs (line i). It is above its weighted moving average (WMA) and now has short-term support at its uptrend, line j
- The weekly OBV (not shown) did confirm the April highs, which is more important
- If support at line g is broken, NFLX could decline to the $210 area
- AAPL tested the $330 level and the former downtrend (line a) on Tuesday before closing higher. The six-month trend line support comes in at $324, with the rising 200-day moving average (MA) at $316
- The longer-term RS analysis is positive, but it came close to long-term support (line e) this week. The RS violated six-month support, line d, in April, which was a sign of weakness
- The RS needs to move through its downtrend, line c, to signal that AAPL is once again acting stronger than the S&P 500
- The daily OBV held support, line g, in April, but is still below its weighted moving average. The weekly volume (not shown) is acting weaker and is below its WMA
- There is initial resistance for AAPL at $340-$342 with stronger resistance at $350
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The apparel chain takes a hard hit after blaming the weather for its quarterly sales decline. But cold temperatures don't explain the drop in full-year sales as well.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.