FlowTrades Blog Articles

American Express Close to Support

On Thursday, shares of American Express, Inc. (NYSE:AXP) traded very close to calculated support at $38.29.

American Express Company is a global payment and travel company. The Company's principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. American Express is based in New York and was founded in 1850.

American Express' current stock range is defined by current calculated support defined at $36.6 and by the resistance level at $39.17, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to American Express' price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $39.17 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

Chevron's Support Breached

Shares of Chevron Corp. (NYSE:CVX) closed Thursday trading session at $71.37 below calculated support at $71.75 breaking the stock technically, raising concerns by investors, as the move might trigger more selling.

Chevron Corporation is an integrated energy company with operations in countries located around the world. The Company produces and transports crude oil and natural gas. Chevron also refines, markets, and distributes fuels as well as is involved in chemical operations, mining operations, power generation and energy services. Chevron, the second largest U.S. energy producer and formerly known as ChevronTexaco, was founded in 1879 and its based in San Ramon, CA.

Chevron's stock was trading in a well defined range with support at $71.75 and resistance at $81.09; given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous support becomes resistance, as the new range gets defined, however, given that Chevron's stock is still near the broken support, traders will be focusing on $71.75 to see if the stock can bounce back and return to its previous range.

Traders wanting to establish a short position in Chevron can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes at previous support of $71.75. For traders wanting to establish a long position the current setup is to wait for the stock to get back to calculated support, given that the stock is still near from this level.

Cisco Breaking Down?

Shares of Cisco Systems, Inc. (NASDAQ:CSCO) closed the trading session on Thursday at $22.52 below calculated support at $22.64 breaking the stock technically, raising concerns by investors, as the move might trigger more selling.

Cisco Systems, Inc. supplies data networking products for the Internet. The Company's Internet Protocol-based networking solutions are installed at corporations, public institutions, home networks and telecommunication companies worldwide. The Company's solutions transport data, voice, and video between networks and computers around the world. Cisco was founded in 1984 and its headquartered in San Jose, CA.

Cisco's stock was trading in a well defined range with support at $22.64 and resistance at $24.89; given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous support becomes resistance, as the new range gets defined, however, given that Cisco's stock is still near the broken support, traders will be focusing on $22.64 to see if the stock can bounce back and return to its previous range.

Traders wanting to establish a short position in Cisco can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes at previous support of $22.64. For traders wanting to establish a long position the current setup is to wait for the stock to get back to calculated support, given that the stock is still near from this level.

Apple’s Earnings – Will Jobs Surprise the Street

Next week is one of the busiest this earnings season, and Apple Inc (NASDAQ:AAPL) is slated to report its quarterly results this coming Monday, January 25^th after the market closes.

With current market weakness, Apple’s results can help the bullish sentiment if they provide a convincing beat to Wall Street expectations. Although, the tape has been sell after earnings, as it was evidenced with Intel (NASDAQ:INTC) and IBM (NYSE:IBM) results that rollover after beating the street’s expectation.

What can be viewed as a difference in Apple’s situation is that a beat of expectations can probably generate a jump in the stock, as the stock has not had its usual pre-earnings run up. In addition, still momentum can get into the stock given next week’s Apple Tablet PC presentation, which is expected to offer functionality from the IPhone and work as an e-book reader as well.

Wall Street estimates already call for a robust 20% growth in revenue, which will be tough to beat. Consensus calls for a profit of $2.07 per share on $12.05 billion revenue, with the low estimate calling for a profit of $1.71 per share on $$11.21 billion revenue. The high range of the estimates is calling for a profit of $2.27 per share on $12.60 billion revenue.

Monday’s intraday action might give traders some clues of what the market will do, after it digests Apple’s earnings on Tuesday.

Amazon looking at the Abyss

Shares of Amazon.com (NASDAQ:AMZN) continue to be under pressure the stock hasn’t been able to shake off the onslaught of profit taking.

Amazon shares have been down 10 of the last 13 days, severely underperforming the S&P 500 in the first 2 weeks of 2010.

The chart formation in Amazon is not encouraging as the stock was not able to get above its previous all time high, and now is struggling to hold support. Although Amazon stock price dipped below the $130 level, traders are looking at $125 as their point of reference, given that this is the level from where Amazon was able to bounce back.

With today’s price action Amazon is below $130 once again, traders are eyeing the $125 level to see if support holds. Given the ongoing weakness in the stock, it might be overdue for a bounce; this could materialize if buyers come in at the $125 area.

If the $125 level fails the stock get hit with more selling as technical traders will be forced to sell given their stop losses will be hit accelerating the fall towards the $110s, basically booking a full roundtrip from where is started after beating estimates.

The 20 day moving average in Amazon’s chart is starting to turn bearish as well, given that is developing a negative slope. However, the fundamentals in the stock should translate into a good technical pattern once the profit taking subsides, which in turn will provide traders with another good opportunity to enter this stock.

More Articles...