3 Big Stock Charts: Twitter Inc (TWTR), Nordstrom, Inc. (JWN) and JD.com Inc(ADR) (JD)

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The markets look ready to continue their melt higher this weekend. Traders will start to focus even more on the stock charts as earnings reports and other announcements start to taper off.

Today’s three big stock charts — JD.Com Inc(ADR) (NASDAQ:JD), Nordstrom, Inc. (NYSE:JWN) and Twitter Inc (NYSE:TWTR) — represent three companies that have recently transitioned from bearish to bullish trends. And right now, we think they’ve opened up for further moves to the upside.

Twitter Inc (TWTR)

Twitter Inc (TWTR)
Source: Chart courtesy of StockCharts.com

TWTR stock has been making a strong comeback after Twitter’s latest earnings report. A constant drip of merger rumors has propelled Twitter shares higher, putting it into a new intermediate-term bullish trend.

Within the past two weeks, we’ve watched TWTR test its 50-day moving average, break above $19 (which had been chart resistance) and now move above its 200-day moving average. In short, this is just too many bullish signals for traders to think that Twitter is going to retreat lower. Instead, this looks like a true trend transition.

The $20 level will be a test for Twitter shares, but with momentum growing stronger and Wall Street taking note of an improving picture, we expect to see this chart/round-numbered resistance to give way and open up to further upside.

JD.Com Inc(ADR) (JD)

JD.Com Inc(ADR) (JD)
Source: Chart courtesy of StockCharts.com

Shares of the “other” Chinese online retailer are jumping after a mixed earnings report last week. The company also is benefiting from a tailwind from Alibaba Group Holding Ltd’s (NYSE:BABA) earnings report.

JD.com shares surged from their lower Bollinger Band back above the 50-day moving average after the earnings report. Now, they’re trading above the top Bollinger Band. This break above indicates that JD shares will see an increase in volatility with a distinct upside bias.

In the short-term, JD.com shares are likely to see a little bit of profit-taking given their fast and aggressive move higher, but any selling should be contained at the $23.75 mark.  Support here will bring buyers back into the mix and begin the second stage of this rally that should target a move above $26, which will transition JD stock into an intermediate-term bullish trend.

Nordstrom, Inc. (JWN)

Nordstrom, Inc. (JWN)
Source: Chart courtesy of StockCharts.com

Everyone is talking about Macy’s Inc. (NYSE:M) and J C Penney Company Inc (NYSE:JCP), but Nordstrom shares are flashing bullish signs that traders and investors should be taking note of.

JWN stock recently broke above a number of technical challenges that are opening up a rally that could extend much more than 10%. Shares have broken above a long-term bearish regression channel that dates back to June 2015. This alone suggests a shift in the long-term trend for Nordstrom.

While making this bullish move, JWN shares also broke above their 200-day trendline, which has been trending lower, and above the stock’s top Bollinger Band, signaling that upside volatility is likely to continue.

Short interest on Nordstrom shares was high at 12 times the average daily volume, signaling that the short sellers have been helping in the rally. So we could see the stock take a rest before making a renewed push.

As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/08/3-big-stock-charts-twitter-inc-twtr-nordstrom-inc-jwn-and-jd-com-incadr-jd/.

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