Sometimes less really is more, especially during the busy trading day. Our daily chart scans have uncovered a number of opportunities for investors to profit from some recent changes in the stock market.
Today, we’ve decided to present an “elevator pitch” for three Nasdaq-100 Index stocks below that have interesting and tradeable chart developments.
Here are a few quick trading takes for Tuesday, Nov. 23, featuring Twitter Inc (TWTR), Tesla Motors Inc (TSLA) and Express Scripts Holding Company (ESRX).
Twitter Inc (TWTR) Is Breaking Psychologically Significant Support
Forget about the CEO drama — this stock’s movements have been coming from the technicals lately as Twitter shares have failed to break their long-term trend. Psychological support at $25 has been trying to hold the decline at bay, but it’s only a matter of time right now.
We observed an inversion of the 20- and 50-day trendlines last week, meaning that TWTR shares are ready to move lower again. Watch for a break of the $25 level to start another surge of selling pressure that will target TWTR’s next support level at $20.
Don’t try catching this falling knife yet.
Tesla Motors Inc’s (TSLA) Death Cross Problems
Tesla (TSLA) stock saw a death cross form on Nov. 16 as its 50-day moving average crossed below the 200-day. This often represents a long-term shift in price trends that favors the bears. The last similar condition for TSLA happened in January 2015. After that, the stock’s volatility increased and returns declines of 12%.
Looking at the current chart, Tesla stock will see some support at $210, but a break below this level will see the technical and logarithmic traders into the market selling with a short-term target of $200.
Stay clear of TSLA as a buyer until then.
Express Scripts Holding Company (ESRX) Is Ready to Rally
Express Scripts got panned by Barron’s this weekend, but the charts and fundamentals are telling a bullish story. The company hasn’t missed an earnings number for more than a year as its business continues to flourish. The charts also back the bulls as Express Scripts remains in bull market territory.
Express Scripts stock has consolidated with strength just above its 50-day trendline and is now heading to move above the critical 200-day trendline. A large short position suggests that a move above $87 will trigger a short covering rally.
ESRX remains a buy with a target of $95.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
