Stocks looked set for more gains in pre-market trading before opening lower on weaker-than-expected retail sales. Stocks recovered their losses by midday trading, as bears weren’t able to crack the markets too badly. That sets us up for a few must-see stock trades going into Friday.
Coca-Cola (NYSE:KO) is having a pretty rough day, especially as its investors aren’t too accustomed to 7.5% one-day pullbacks. After in-line earnings results and a beat on revenue, management provided a cautious outlook that sent shares reeling.
It’s hard to deny that $50 was clearly resistance in this name, but there could be some debate about support. Some will say KO has already dropped through it at $46.50. Others will say support still rests down at $46. Within 50 cents of each other and I say it’s a wash.
Notably, we also have the 200-day nearby at $45.62. Those who want to take a stab at Coca-Cola stock should keep these levels in mind. A close below the 200-day and traders may want to rethink their position. Keep in mind, PepsiCo (NYSE:PEP) reports earnings on Friday before the open.
Now investors are wondering where it can rally to. Short of a market-wide breakdown, CYBR has room above $110, with trend resistance still a little ways above current levels.
On the downside, should CYBR pullback, look to see if it can stay over Thursday’s low. If it can’t, see how it handles uptrend support (purple line).
Canada Goose (GOOS)
Despite all this, shares are down about 11%. Shares are now technically below the 200-day, but have the 21-day and 50-day moving averages just below current levels. Further, its got short-term uptrend support nearby too.
Those who feel this is the wrong reaction and/or an overreaction to what were truly great results may consider this a buying opportunity. Below $50 and a drop down to $46 to $47 isn’t out of the question, and possibly further.
Conservative traders who don’t mind buying even though we’re heading into the spring and summer seasons instead of the fall and winter seasons may consider waiting a few days to see if buyers step in first.
S&P 500 ETF (SPY)
The SPDR S&P 500 ETF (NYSEARCA:SPY) is one we should look at now given how well the market has done since the December lows. A lot of investors were focused on possible downtrend resistance (blue line), but I didn’t like that look.
Why? Because it feels cherry picked and felt forced on the charts to justify a negative view. Plus, it’s an inaccurate trend, but I digress. Instead, I continue to focus on the $280 level, a mark that SPY failed at three times in October, November and December. If we get there in a relatively quick amount of time, it will also likely push the RSI (green circle) into overbought territory.
A rally to this level would be my ideal scenario and give investors a solid risk/reward for some profit taking and/or possible shorting opportunities. The exception is if we get there via a trade deal with China. If that happens, $280 may prove to be feeble resistance.
Not that it was surprisingly with a near-15% yield, but CenturyLink (NYSE:CTL) stock is getting pummeled on Thursday after axing its dividend to $1 a share from $2.16. Shares are down about 12% in response, but according to the charts, they could have further room to fall.
The downtrend (blue line) told investors all they needed to know leading up to this gut-punch. Now below $14 and shares are in no man’s land until $12. Maybe buyers will step in near $12.50, but there seems to be little reason to hop on board into such a route.
Let CTL wash out and let’s see if $12 holds. Below and it’s really in trouble.