Well, there you have it. The Federal Reserve decided to raise interest rates yet again, but curbed its rate-hiking outlook for 2019 from 3 hikes to 2. Still, markets aren’t loving it, with major U.S. indices reversing from their gains to now trading in the red. What now? Let’s look at a few must-see stock charts.
Must-See Stock Charts for Tomorrow #1: FedEx
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Let’s start with a look at several earnings stories, leading off with FedEx (NYSE:FDX). The stock has been under pressure but its 11% post-earnings decline is only making matters worse. Many considered this report a real doozy.
Last week, FDX knifed through its 200-week moving average and the losses are accelerating this week.
The sell-sign came near $200, when FDX broke below downtrend support. Now nearing $165, some may be wondering if FDX is oversold. After all, it does trade at less than 10 times this year’s earnings.
It may be oversold, but why is $165 better than $180 support or $200 support? Until I see FDX start to firm up, it’s in no man’s land to me.
Must-See Stock Charts for Tomorrow #2: General Mills
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General Mills (NYSE:GIS) remains in a disappointing state, beating on earnings but missing on revenue expectations. After initially rallying to $40, it was promptly rejected by the 21-day moving average.
It now puts the recent lows near $37 back on the table. However, its rejection from $40 was more significant than just hitting the 21-day moving average. Not shown on the chart is the five-year weekly look, which shows that this level has been quite significant over the past few years. Rallying to it and failing shows a significant sentiment shift. I would expect $40 to be resistance going forward.
Must-See Stock Charts for Tomorrow #3: Micron
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While we did give an earnings preview for Micron (NASDAQ:MU), we can’t ignore it after today’s move. Guidance came up way short and MU broke down as a result. Support gave way and MU tumbled to $31.28 before rebounding.
However, on its rebound it approached prior support near $34 before failing. Like GIS, that’s a bad sign for bulls and they will need to see MU reclaim that level before getting significantly bullish in the future.
For now, look to see if MU can get over downtrend resistance and the 21-day moving average. If not, MU will keep getting squeezed lower.
Must-See Stock Charts for Tomorrow #4: Advanced Micro Devices
Like many other stocks, Advanced Micro Devices (NASDAQ:AMD) has had trouble gaining traction to the upside. However, it’s still riding the backside of downtrend resistance.
Now just under $19, the stock is coming into uptrend support (black line) and the 200-day moving average. Longs who are looking for a low-risk setup have one. The one caveat here is that break below support could result in an aggressive selloff. So longs dipping their toe in need to be careful.
On a rebound, look for a test of the 21-day moving average near $20.
Must-See Stock Charts for Tomorrow #5: Nvidia
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We can’t talk AMD without talking about Nvidia (NASDAQ:NVDA) right?
The 21-day moving average has been resistance for Nvidia for two months now as the stock remains trapped in a downtrend. Basically, we need to see NVDA get out of this channel and get above its 21-day. Until it does, Nvidia can keep going lower. As it stands, the 52-week lows are on the table. Will it eventually weigh on Intel (NASDAQ:INTC) stock?
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA.
