The market’s indecisive moves have stocks bouncing around like a loose golf ball in a trunk. Volatility with little actual movement is what drives traders absolutely nuts, which is why we’re maintaining a vigil eye on the technical pictures for opportunities.
Today’s three big stock charts look at the technical pictures for Amazon.com, Inc.(NASDAQ:AMZN), Array Biopharma Inc (NASDAQ:ARRY) and Paychex, Inc. (NASDAQ:PAYX) as each of these companies are trading in their own technical worlds that are providing clearer signals than the market in terms of tradable moves.
Amazon.com, Inc. (AMZN)
We’ve talked about shares of Amazon almost weekly for the last month. There’s a good reason, everyone trades it, and it’s setting up for a tradable move.
- Over the last week, the 50-day moving average for AMZN shares has transitioned into a short- to intermediate-term bearish outlook. This sets the stage for sellers to take control of the stock.
- Overhead resistance in the form of the stock’s round-numbered $1,000 price has held, triggering selling pressure last week that rolled Amazon stock back lower.
- Because of AMZN stock’s rapid ascent, the 200-day moving average is the next line of support for the shares. This trendline is some 12% lower and it is the likely target that the technical traders will give to the stock.
Array Biopharma Inc (ARRY)
Pharma and biotechnology stocks have been trying to mount a comeback on the heels of some clarification on regulatory changes, or lack thereof.
Array Biopharma is showing signs that the recent rally is one that is likely to gain even more momentum, here’s why.
- After building a base at $7.50, shares of ARRY are now trending higher and are now trading above their 50-day moving average.
- The recent strength has turned the 50-day moving average bullish as the trendline is now moving higher. This forecasts higher prices for Array Biopharma over the next 4-6 weeks.
- ARRY stock is in the process of trying to break above $9. This price serves as round-numbered resistance and the spot where the stock’s 200-day moving average lies. A move above this will start a volatility rally that will carry Array Biopharma higher.
Paychex, Inc. (PAYX)
Despite strength in the employment market, Paychex has seen weakness all year and the stock is still on our targeted sell list. PAYX shares have surged over the last week, but are now looking as though they’ve run their course and it might be time to lock in some profits.
- Paychex is preparing to run into chart resistance at $57. This level has exerted itself as support and resistance since April and it is likely to trigger selling on shares of PAYX.
- The 50-day moving average for Paychex has rolled-over into a bearish pattern. This increases the odds that the stock will trade each day and puts more pressure on day-to-day activity.
- On a longer-term basis, PAYX shares are breaking into a long-term bear market pattern as the shares are pressing the support of the 20-month moving average. Currently, the 20-month is at $55.70, which should be considered the stock’s “line in the sand” for the bulls.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.