Earnings and surges through round numbered support are the theme of today’s three big stock charts as Analog Devices, Inc. (NASDAQ:ADI), Amazon.com, Inc. (NASDAQ:AMZN) and Domino’s Pizza, Inc. (NYSE:DPZ) are three names that are offering bullish opportunities based on their price movement and charts.
Analog Devices, Inc. (ADI)
Apple Inc. (NASDAQ:AAPL) supplier Analog Devices came out with a great earnings report. The company beat on the top and bottom line as well as providing an upgraded outlook.
Analog Devices shares of the semiconductor stock are surging higher into a volatility rally this morning as a result of the catalyst. In early morning trading, ADI has shattered through $85, which had been chart resistance for the stock.
The move also surges Analog Devices shares into an overbought reading of the RSI, but this is one of those situations where overbought will become more overbought as the market is going to load-up on ADI shares. A similar situation happened with Nvidia Corporation (NASDAQ:NVDA) shares after their earnings this quarter.
Analog Devices saw a 26% increase in short interest just ahead of the report, so there are going to be a lot of short sellers entering the market to cover their losses quickly. This will help to propel Analog Devices stock even higher.
The stock’s next technical target is $100, where it will start working on moving into new all-time high territory.
Amazon.com, Inc. (AMZN)
Will it or won’t it? That’s the question that market-watchers are asking about Amazon.com shares breaking above $1,000.
AMZN stock has been doing a dance just below the $1,000 mark for the last four trading sessions. This is a perfect example of how round-numbers tend to act as resistance and support. The more the zeros, the more impact.
Amazon stock is toying around with breaking above the top Bollinger Band at the same time that we’re going to see a break above $1,000. This combination will have a bullish volatility affect that is likely to see AMZN stock surge higher in a fast and aggressive motion.
Our charts expect to see a 5-10% rally after the break above $1,000, followed by a pullback to the same price level as a technical test. In other words, this chart reads like a trader’s dream.
Domino’s Pizza, Inc. (DPZ)
It makes sense. More discretionary income also comes with less time for fun, so we order pizza to save time, right? So when I see that Domino’s Pizza stock is benefiting from improving from stronger fundamentals it just makes sense.
DPZ stock is surging as it has now broken through $200 and it trading above its top Bollinger Band. This trend has been supported by Wall Street analysts getting into the stock as a whopping 78% of the analysts have been camping out in the hold category. Now we’re seeing interest in Domino’s Pizza stock change, which means a migration of cash is on its way as upgrades drive investors to the shares.
Over the intermediate-term, we expect to see a $225-print on DPZ shares, followed by some profit-taking on the stock that will likely re-test the $200-level. Again, another chart that should get traders excited for the long and short opportunities.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.