After the worst first quarter in the history of the Dow Jones Industrial Average, long-side traders hoped that April Fool’s Day would provide some relief. Boy, were they disappointed.
Perhaps the market slid on Wednesday because the White House predicted a “very, very painful two weeks.” In any case, the coronavirus from China clearly left a lasting impression on the trading community.
Regardless, a handful of stocks managed to stay in the green. That’s comforting and perhaps a positive sign. The three big stock charts for Thursday will focus on the ones that kept their cool even while the market was floundering.
Kellogg (K)
Why not wake up to a tasty bowl of cereal and a big helping of Kellogg (NYSE:K) stock to start your day? As you can see, this one’s been fortified with green candles lately.
- There’s firm support at the $53 level. The stock bounced off of it like a springboard, and so far the momentum seems intact.
- At $63 and change, we’re right smack in the middle of that giant channel. We can conclude that the stock’s neither cheap nor expensive.
- Moderate volume on Wednesday’s candlestick implies some uncertainty. It’s best to take a wait-and-see approach now.
Regeneron Pharmaceuticals (REG)
Health-care investors took a shine to Regeneron Pharmaceuticals (NASDAQ:REGN) stock on the first day of the new month. But are healthy profits on the horizon?
- Five consecutive green candlesticks is a sure sign of momentum. The trend is your friend, so you don’t want to short-sell this one.
- On the other hand, there’s resistance at $500. That’s a psychologically significant number, so watch that level for clues as to the stock’s next move.
- Support at $425 means that it’s probably safe to take a small position here. And with a nearly-$500 stock, that could actually mean one share.
Newmont (NEM)
If you like gold, then you might be a fan of Newmont (NYSE:NEM) stock. Will this famous resource name shine in the days to come?
- That gigantic megaphone pattern is shouting to the hills. What’s it saying? It’s saying that the price moves are getting bigger, so please be careful.
- The last half-dozen candlesticks all had big upper wicks. That suggests the next move might be to the downside.
- Longs can take profits at the $52 resistance price point. Or you can sell at the top of the megaphone, wherever that might happen to be when the price gets there.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.
