This week get off to a positive starts as the S&P 500 and other indices are looking to open Monday morning with some slight gains. Friday’s trading, boosted by the better-than-expected jobs data, saw a couple of interesting technical shifts that may signal the return of buying power to a few of the higher-profile stocks like Under Armour Inc (NYSE:UA), Netflix, Inc. (NASDAQ:NFLX) and Dunkin Brands Group Inc (NASDAQ:DNKN).
Here’s a look at the charts you should be watching today:
Under Armour Inc (UA)
It may be a coincidence, but Under Armour shares took off on Friday, just hours before the opening ceremonies for the Olympics in Brazil. Of course, we’re three days in now and anyone who has been watching has seen the well-known UA logo all over the place.
The stock got a boost on Friday, which is likely the old “buy the rumor” crowd coming in to hold the stock through the Olympics as the company gets positive chatter.
Don’t think that can happen? Look at Under Armour shares when Jordon Speith fell apart at the Masters.
Anyhow, the charts on Friday show a solid break above the stock’s 50-day moving average with a slight increase in volume. This after Under Armour shares initiated the recent rally with an oversold signal from their RSI on August 2.
The challenge will be the declining 20- and 200-day moving averages, which join forces at $40.86 as potential resistance. If the shares can take this level, then it will clear a tradable move to the $44-$46 target for the bulls.
Netflix, Inc. (NFLX)
Netflix stock also got a big move on Friday as rumors of M&A activity swirled through the trading floor and helped shot shares above their 50-day trendline. Netflix has been relatively quiet rally since bottoming at $85 ahead of its earnings on July 19.
The rally now has room to advance to the $101 level with little resistance, with the company’s focus on international growth and little expected in the way of news and reporting. In other words, Netflix is likely to be in the technical traders’ hands for the rest of August, and the improvements in the intermediate-term trends suggest the traders will take Under Armour higher.
Watch for a little slowdown at $101 from the 200-day, but our technical targets are eyeing $110 before the next earnings announcement.
Dunkin Brands Group Inc (DNKN)
Dunkin Brands Group has been undergoing a long-term fundamental and technical turnaround for more than a year. While the stock has been grinding in ranges, which aggravates the long-term investors, Dunkin Brands has been providing trading opportunity for the shorter-term traders.
The short-term bulls are currently seeing one of these form as Dunkin Brands shares made a nice bounce from their 200-day trendline last week, immediately followed by a break back above their 50-day moving average.
The combination of support and the a bullish break higher would get the traders interested in the potential for the stock to run to the $48-50 level over the next few weeks, at which point we’ll see those same buyers start to lock-in profits and take the shares back towards the bottom of the same range.
For now though, the bullish traders are ready to move Dunkin Brands higher.
As of this writing, the Johnson Research Group did not hold a position in any of the aforementioned securities.
