Could big moves lead to even bigger moves? That’s a common question in the stock market and the answer is yes. Just look at the big stock charts. Sometimes momentum can really take over and change a sideways-trending stock into a fuel-filled juggernaut.
Friday ended the trading week on a fairly positive note for many long-leaning traders. Investors may be starting to feel some hope that the panic induced by the novel coronavirus will be resolved. Businesses in nearly every major market sector seem to be at a turning point now.
Sifting through hundreds of big stock charts, a handful of names really catch the eye. Three well-known stocks made some serious gains at the end of the week. Is the market signaling continued upside for these stocks? We’ll explore this as we present to you three big stock charts to get you ready for a new and exciting week in the markets.
Among American aerospace and defense names, Boeing (NYSE:BA) is considered a true industry giant. Unfortunately, the economy has been rough lately and many planes are grounded now.
That should change eventually, however. For the time being, we can analyze the BA stock chart to see if there are any clues as to where the price action will lead us.
- Friday’s candlestick might not look like anything to write home about. But don’t be fooled, as BA stock made a serious move of nearly 15%. The volume was high as well.
- BA stock is still far below the 50- and 200-day moving averages. It has some catching up to do, even after Friday’s candle. However, it just popped above the 20-day moving average. That’s a short-term directional indicator and could be a very positive signal.
- Resistance is way up there at $375, but that’s just a dream for now. For the time being, consider $200 a significant psychological price point to watch closely.
AMC Entertainment (AMC)
There’s absolutely no denying that owners of AMC Entertainment (NYSE:AMC) stock have had a challenging time since the spread of the coronavirus. Indeed, AMC shareholders’ troubles started all the way back in September of last year.
Friday’s price action may have provided a ray of light to embattled AMC stockholders, though. Is this the beginning of a turnaround in fortune?
- The main feature here is a widening channel. Unfortunately for the bulls, it’s on a clear and worrisome downtrend that has been in effect for half a year. Long-leaning AMC stock traders will definitely want to see the price break out of that channel.
- The 31% single-session move in AMC stock was a sight to behold. However, Friday’s candlestick reveals that the price was substantially higher during the trading day. It nearly reached $4 but then pulled back somewhat. Therefore, $4 should be viewed as a resistance point until further notice.
- Still, Friday’s trading volume was the biggest we’ve seen in AMC stock in a long time. This one could have some real firepower!
The biotechnology sector has always been a mixed bag for stock-market traders. The spread of the coronavirus has made this typically volatile sector even wilder. Expect to see some large candlesticks printed on stocks in this sector for a while.
A case in point is Moderna (NASDAQ:MRNA) stock. The third of our big stock charts saw a sizable gain on Friday, capping off a full week of consecutive upward moves. Is this a buy signal, or will traders get trapped at this loftier price point?
- The visually exciting candlesticks from the past week display a stock that’s gaining momentum. There’s a long lower wick on Friday’s candle which signals a strong push by the buyers.
- You can see now that the widening channel is in the rear-view mirror for MRNA stock. It has broken clearly above it, and the bulls will hope that the stock continues on its upward trajectory.
- Still, we must be cautious and consider $50 as the next potential barrier. There’s nothing wrong with taking profits despite the stock’s apparent momentum.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.