Earnings are still the focus as the market continues to drive to higher prices, despite some rather large names falling short on the earnings front. Of course, Apple Inc. (NASDAQ:AAPL) will be the talk of the market today as the company surprised investors with better-than-expected results; however, the broader picture remains tepid.
Today’s three big stock charts look at Under Armour Inc (NYSE:UAA), Ford Motor Company (NYSE:F) and Twitter Inc (NYSE:TWTR) as these three companies are bucking the market’s positive trend and threatening to continue their moves lower.
Under Armour Inc (UAA)
Under Armour shares went from teasing the technicians with a recovery to failing to hold a critical chart level as the company’s earnings results disappointed the market. As of now, UAA stock is trading below a critical level, but that could change over the next few trading days.
- Ahead of the company’s earnings, Under Armour stock was actually teasing technical traders as the stock had reached its 50-day moving average and threatening to move higher. Instead, the stock was rejected twice, setting the tone for a technically bearish outlook.
- The one-day decline in UAA stock not only saw a rejection of the 50-day, but also moved the stock below clear chart support at $16.50. Under Armour has seen the stock rally from this price twice in the last three months, meaning that a break will erode confidence and increase technical selling.
- Under Armour is now trading in a long-term bear market trend for the third month in a row, with overhead resistance at $22.30. Any short-term rallies will be sold into this strength.
Ford Motor Company (F)
Despite growing confidence in the economy and consumer spending, Ford shares are moving back into a potentially bearish trend after the company reports slumping retail and fleet sales.
The stock is threatening to head back below $10 as we’re seeing some shifts in the trends that may pressure F stock lower.
- After trying to hold on to support at the stock’s 50-day moving average, Ford stock has broken this important trendline. The break below the 50-day has the trendline shifting into a neutral-to-bearish outlook trend, lowering price targets for the next three months.
- F stock is pressing against $10.90, which has been a consolidation level and chart support for the stock. A move below this level in the next few trading days will increase the selling pressure on Ford shares.
- Momentum, according to the MACD, has moved negative again, projecting lower prices. In addition, F shares were already trading in long-term bear market conditions. For now, a price target of $10 is reasonable for Ford stock.
Twitter Inc (TWTR)
Twitter shares are dealing with the fallout from their negative earnings report, which showed disappointing sales and growth numbers. TWTR stock broke through some technically key levels and remains in a bear market.
There may be a trade for the extremely nimble trader here, but the long-term remains bleak.
- Twitter’s earnings results sent the stock slicing through its 50- and 200-day moving averages and shares are now sitting at what should be considered critical chart support at $16.
- From a short-term perspective, TWTR shares are deeply oversold and are likely to see some buying come into the market to pop prices. This bounce is likely to run into overhead resistance at $17 as Twitter’s 10- and 20-month moving averages are combined in this area and trending lower.
- From a longer-term perspective, TWTR shares should be kept at an arm’s length as the stock remains in a bear market trend that is targeting the next level of support at $15.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
