Stocks are notably lower on the day, with major U.S. indices falling as trade-war worries continue to weigh on investors. As some companies are reporting earnings on our list of top stocks to trade, that makes things even more interesting.
One of the companies reporting? FedEx (NYSE:FDX).
This stock had a big breakout over the $255 level, and it got us to bite back in June. However, the company reported earnings and shares quickly cascaded lower.
That’s why discipline is so, so important in trading. Consider that $252.50 to $255 area as the breakout level, right?
As pointed above (arrow on the chart), FDX initially bounced off this area, but then closed below it at $250 the next day. If investors pulled the plug and stopped out, as they should have, they saved anywhere from $25 to $30 per share of agony.
While FDX stock has broken above that level again, it’s now hitting a level that’s formed as downtrend resistance. Let’s see how the stock reacts to earnings. Bulls can be buyers with FDX over downtrend resistance and the $255 level. Look to see if $265 acts as resistance, but as long as FDX has support below it, it could worth a shot on the long side.
Teva (NYSE:TEVA) is off its morning gains, but is up over 2% Monday thanks to FDA approval for its migraine drug.
The rejection off $25 is somewhat discouraging, but it’s positive to see Teva up over all three of its major moving averages. Still, it’s a volatile name that investors may be better of waiting on until there’s a more definitive move.
If Teva can breakout over and close above $25, it may be worth a look on the long side.
Man, it’s been a painful stretch for JD.com (NASDAQ:JD), which fell another 5% on Monday and is making new 52-week lows.
The stock is now down almost 50% from its highs. If long-term investors have been waiting for a position in this name and still believe in its future, maybe near current levels is a good area to dip their toes.
For me, there’s not much a reason to buy JD from a technical perspective. It might take some time to work down to the $22 to $23 area, but that may be a good spot to scoop up JD. Otherwise, let’s see if it can put in some higher lows first.
While we’re using the short-term chart above, the long-term chart suggests that $50 is a significant level for Oracle (NASDAQ:ORCL). On the short-term chart, $50 is also channel resistance, while support is down near $48.
Like FedEx, Oracle is due to report earnings. A breakout and close over $50 should tempt bulls on the long side, although keep in mind its prior highs near $52.50 may keep a lid on the name in the short-term. Above $50 and its prior highs and ORCL seems quite interesting on the long side.
Should the stock pullback, see how channel support holds up. That’s right near the 200-day moving average and just above the 100-day. If those levels give way, bulls should stay clear of ORCL.
Dave & Busters
Dave & Busters (NASDAQ:PLAY) couldn’t add to its gains on Friday, after the company beat on earnings and revenue estimates and initiated a quarterly dividend.
I would love to see PLAY pullback a bit. If the overall market comes under pressure, we could get PLAY into that $58 to $60 area. If so and it holds as support, investors may view it as a gift. Below this level and we have to see where support comes into play. If PLAY rallies and takes out its highs, momentum bulls may step in on the long side and push it higher, much like they did with Roku (NASDAQ:ROKU).