Friday wasn’t an easy one for bulls. Markets are under pressure and concerns are mounting that this was simply a dead cat bounce rather than a sustainable rally. Good thing InvestorPlace readers have been on their toes. Now let’s look at a few must-see stock charts for Monday’s preparation.
Must-See Stock Charts for Tomorrow #1: Costco
Costco Wholesale (NASDAQ:COST) is a great company, but the stock doesn’t come at a discount. As a result, shares weren’t able to hold up to investors’ ever-increasing expectations. Costco stock is down more than 8% after the company reported earnings.
Costco knifed right through $217 support and went through the 200-day moving average. If it’s able to rally, see how it trades near the 200-day. On a continued decline I want to see if support comes into play near $200 or $190.
If not, Costco stock could be in no man’s land for a while.
It seems appropriate to provide an update now. Yesterday, I wanted to see the $240 level hold as support. Should it fail, I wanted to see downtrend resistance (blue line) hold up as support.
Now just below that mark, it will be interesting to see if Adobe is able to find its footing. Its earnings weren’t bad, but if the market is in a sell-first, ask-later mood, it won’t matter.
Should support fail, bulls really do not want to see Adobe back down near its $210 lows. Let’s see if it can find buyers before than and put in a higher low to trade against.
Must-See Stock Charts for Tomorrow #3: Johnson & Johnson
The stock plunged down to $130, but support came into play near the 200-day. For those that want to buy, they can now use this low as their stop-loss. On a rebound, look to see if $140 and the 50-day become resistance, or whether the 100-day becomes resistance first.
I would rather wait for a larger dip to buy in JNJ.
Must-See Stock Charts for Tomorrow #4: Goldman Sachs
Remember when we said not to buy Goldman Sachs (NYSE:GS) on a break below support near $210, no matter how cheap the stock seems? Cheap stocks can always get cheaper and expensive stocks can always get more expensive.
Now though, the stock is in the low-$170s, hitting its election breakout base from 2016. Investors who want a low-risk entry opportunity, perhaps this is their spot. If it holds as support, look for a rally back to the 200-week moving average. Below ~$167.50 and GS could be in trouble.
Must-See Stock Charts for Tomorrow #5: Starbucks
Starbucks (NASDAQ:SBUX) is under pressure after the company’s analyst meeting where it provided lower-than-expected guidance. So far shares are holding up okay, given the massive move they’ve made from late-October, as well as its summer lows.
I would be concerned with SBUX if it lost $62. Below that mark and it will lose uptrend support (blue line), the 50-day moving average, its prior high from 2017 and the earnings gap up from October. If that’s the case, look for a gap gill near $59.
Investors looking to get long may take a shot below $64 for a solid risk/reward, but Starbucks’ guidance will likely sap much of its momentum. It’s too early to tell, but SBUX could be range-bound for a while now. New highs in the short-term seem unlikely.