All winning streaks must come to an end, and the stock market finally pulled back somewhat on Tuesday. It’s fair to conclude that the selling pressure caused by the novel coronavirus from China may persist for a while longer.
Yet, it’s not fair to say that all stocks move together in lockstep. There always seems to be a handful of stocks that buck the trend and “do their own thing.” That can actually be a positive sign, from a technical standpoint.
Let’s explore three big stock charts of non-conformists among the sea of stocks. Perhaps one or more of these “maverick stocks” will continue to sidestep any coming market downturns that might occur.
Altria Group (MO)
If you’re ready and willing to own a company that sells cigarettes, Altria Group (NYSE:MO) stock is a leader in this genre. Altria’s forward dividend yield of practically 9% is a real whopper, but will the share price go up in smoke?
- The $40 level was support but now could be the first resistance point. This will provide a key test as traders who would buy near the bottom might take profits at $40.
- There’s some serious resistance on this big stock chart at $51. That’s a good place to take some or all shares off the table if it gets there. You’d still probably have a decent profit if you sold there.
- Scarcely an upper wick on Tuesday’s candlestick suggests a full day of buying pressure. That’s rather bullish, so that $40 test might come very soon.
Founder Elon Musk is definitely a maverick — or eccentric, depending on who you ask. Tesla (NASDAQ:TSLA) stock, much like Mr. Musk, went against the grain on Tuesday. But will the stock continue to perform well?
- Some technicians would call Tuesday’s candlestick a “hanging man,” which is supposed to be bearish. Still, it’s hard to feel bearish about a 3% up day.
- The short-term trend is still to the downside until proven otherwise. A few more green days could invalidate that, though.
- Resistance definitely exists at $900. Book your profits at that point and thank your lucky stars — or Mr. Musk, perhaps.
Carnival Corporation (CUK)
Are you enough of a maverick to invest in a cruise line? The last of our big stock charts suggests that’s a bold move that might just pay off. Carnival Corporation (NYSE:CUK) stock actually looked great on Tuesday. Is there cause for celebration here?
- At least we escaped from the single digits, which is commendable. That’s psychologically important as we don’t want to backslide below $10.
- Resistance is at $47.50, which feels like a pipe dream at this point. But miracles do happen, so it’s worth mentioning.
- Bulls will appreciate Tuesday’s decent volume and the size of the price move. Just don’t bet the farm on this one, as $7.50 might provide some support, but don’t count on it.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.