Headline news surrounding Nort Korea, President Trump and the NFL and the approach of earnings season look to have stocks off to a soft start for the week.
A pullback ahead of the earnings season could actually be bullish as it takes some of the optimism out of the market ahead of the earnings season, which would be bullish.
Today’s Three Big Stock Charts looks at the technicals for Intel Corporation (NASDAQ:INTC), First Solar, Inc. (NASDAQ:FSLR) and Fitbit Inc (NYSE:FIT) as all three stocks are indicating that they are ready to break to higher prices over the next 4-6 weeks.
Intel Corporation (INTC)
Intel has been a relative strength laggard among the semiconductor companies for much of the year as the stock’s lack of direction trend have kept traders interested in more active names like Nvidia Corporation (NASDAQ:NVDA).
Things may be changing for the semiconductor giant’s stock as shares of Intel are breaking into a new bullish trend that is worth checking out.
- The recent rally in Intel shares took them above long-term chart resistance at $36.50. The stock has run into and been rejected at this price each and every time it approached it in 2017.
- Currently, momentum measures such as the MACD and Chandre Trend Meter Are indicating that the stock is likely to continue its move higher as volume and breadth are providing a tailwind for Intel stock.
- The break above the long-term trading range comes at the same time that the longer-term trending 10-month moving average for Intel shares begins to move into a bullish trend itself. This will provide some strength from long-term buyers now migrating to the stock.
First Solar, Inc. (FSLR)
First Solar shares got a boost from the ITC findings last week as the company has low dollar costs and thus potential to benefit from the potential tariff increases on Chinese Solar products. The stock has spent the last two-month trading at the top of its range, looking for a breakout, will last week’s news provide it?
- First Solar shares broke into a volatility rally on Friday as the stock broke and closed above their top Bollinger Band. This suggests a rally that is likely to move fast and last more than a week as traders try to catch-up with the stock.
- First Solar shares have support from their 50-day moving average which is trending higher. This trendline has been in bullish mode since early May as the stock has rallied to $50 from $34.
- The stock recently switched to a long-term bullish outlook as shares moved above their 20-month moving average in July and have sustained that strength. With only 35% of the brokers recommending the stock as a buy, there is plenty of room for upgrades to drive prices higher.
Fitbit Inc (FIT)
Shares of the fitness tracking gadget company moved higher last week. In part, the move is likely to the fact that the new iWatch didn’t deliver a death blow to the Fitbit product. Fitbit shares remain one of the more volatile names in the Nasdaq 100, however this volatility offers traders exactly what they are looking for, tradable movements.
- Another stock that is now participating in the rally is Fitbit. After being left behind for more than a year, the stock has found some strength after their last earnings report. In addition, the market appears convinced that the new iWatch is not a replacement for the Fitbit.
- From a longer-term perspective, Fitbit shares just moved above their 10-month moving average, which is also a close partner with the 200-day trendline. This should put the stock back on the screen of technical traders again.
- Shares of Fitbit are benefitting from the bullishly biased 50-day, which is trending higher and bullish chart support from the $6.20 level, identified with the green line in the chart above. Watch for a rally to take shares of Fitbit as high as $9.85.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
