3 Big Stock Charts: GoPro Inc (GPRO), Starbucks Corporation (SBUX) and FireEye Inc (FEYE)

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The market continues to show signs of fatigue as traders are pulling money from equities ahead of the election on the fear that more volatility will take the market lower.

3 Big Stock Charts: GoPro Inc (GPRO), Starbucks Corporation (SBUX) and FireEye Inc (FEYE)In this case, it’s hard to disagree as thoughts and memories of turmoil caused by the 2000 presidential election run through our collective heads. There’s still business to do though, as the flow of earnings continues to rock and roll, creating their own trading opportunities.

Today’s big stock charts look at three earnings stocks in GoPro Inc (NASDAQ:GPRO), Starbucks Corporation (NASDAQ:SBUX) and FireEye Inc (NASDAQ:FEYE).

All three just provided their quarterly results to the Street and all three are stocks that traders are likely to take lower after their reports (yes, we know FireEye is trading 13% higher).

GoPro Inc (GPRO)

161104 GPRO Price Chart
Source: Chart courtesy of StockCharts.com

GoPro is trading 17% lower after another quarter that can be summed up as disappointing. Investors have been waiting for a “what’s next” moment from the company and there’s just nothing there.

The charts are breaking in a big way with the earnings miss as the stock is trading below $10 in the pre-market session.  This will break what is critical support that was last “in play” in July of this year. Traders react positively and negatively to stocks moving above round numbers like $10, and this move will draw sellers.

The trends on GoPro ahead of earnings were poor, as all the intermediate-term trendlines had shifted into bear market mode after the stock peaked in early October. This indicates that the Street was already moving money away from the name ahead of the report, a “sell the rumor” situation that goes bad for GoPro.

GoPro shares are already oversold, but this is a situation where cheap is likely to get cheaper as the fundamental analysts will review their price targets. At this point GoPro looks like more of a lottery ticket investment as the hope of an acquisition is likely the basis for many investor’s positions.

The stock remains in a bear market trend, as it has since January 2015.

Starbucks Corporation(SBUX)

161104 SBUX Price Chart
Source: Chart courtesy of StockCharts.com

Starbucks provided a good earnings report for the quarter along with some downside guidance — so a mixed report. Shares are trading 3% higher in early morning trading, but SBUX stock has been mired in a terribly bearish trend that could continue, and overhead resistance at the $54 level could prove tough to break.

For the past year, Starbucks shares have been following a pattern of lower highs and lower lows that are a regression trend analyst’s dream as they have could identify perfect trade points for the stock. This earnings report happened to come as the stock was trading near the bottom of that range and at the bottom Bollinger band, which could cause trouble for the Starbucks shares.

A break below the $51.50 price is going to continue the move below the channel that has been in place and the Bollinger bands, which should send technical traders into sell mode. Volume has spiked on yesterday’s decline, suggesting that SBUX stock could easily become oversold, but that would be short-lived considering the volatility trading that is hitting Starbucks stock.

On a longer-term chart perspective, the $51.50 price was a resistance point for the stock on its climb in 2015, meaning from a chart perspective it should try to hold Starbucks from too much selling pressure, at least for the next few trading days, but there’s a bottom line on this one.

A move below $51.50 for more than a day or two is going to get more program traders involved in the selling, especially if we begin to see the Wall Street analysts lower their price targets, which is likely considering the lowered guidance from the company.

Our charts are showing that we should see some short-term buying kick in next week as the oversold signal will trick a few traders into taking a flyer on the stock, but negative momentum and a clear trend from the 50- and 200-day moving averages suggests that Starbucks is likely to see another 10% downside.

FireEye Inc (FEYE)

161104 FEYE Price Chart
Source: Chart courtesy of StockCharts.com

The real earnings winner this morning is FireEye whose shares are trading 13% higher Friday morning on a positive earnings report. The technical bulls that may have bought the stock ahead of earnings did it on little more than a lark, as there are no technical in place to support the stock at this point, suggesting that the nimble traders will take their profits and run.

Overhead technical resistance is in place in spades with the 20-, 50- and 200-day moving averages all trending lower just above the current market prices. This confluence of technical trendline resistance is part of what held the shares back from any rallies this summer and they are likely to trigger opportunity selling in the stock now.

FireEye does have a good share of short interest on the stock, indicating that we may some further upside from this morning’s open as the shorts get squeezed out of their positions. Expect this to help drive the stock above its open towards the $13.75 price. This is the line that is likely to slow FireEye’s progress though as it is the site of the stock’s 50-day moving average.

Conveniently, the 13.62 price is the site of the stock’s 50-day and top Bollinger band, so expect profit-taking at this price and a likely reversal. For now, the bulls are celebrating the earnings news, but the charts still have a lid on the stock.

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/2016/11/three-big-stock-charts-friday-gopro-gpro-starbucks-sbux-fireeye-feye/.

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