Technical Trade Lesson: Weekly Outside Reversal Pattern Workday Inc (WDAY:NASDAQ) is a leading provider of enterprise cloud applications for finance and human resources. The stock recently topped out on November 27, 2017 at $116.89 a share. Since that high pivot, the stock has declined sharply. Last night, the company reported earnings and the stock is falling lower today by $2.54 to $104.00 per share. The pattern forming on the weekly chart is what we call an outside reversal pattern. This is usually a very bearish pattern that indicates further downside is possible in the coming weeks. Traders should realize the stock is short-term oversold on the daily chart already, so there could be some minor bounces or positive trading days in the stock. But please note, the weekly reversal pattern that has formed is not a sign of strength. This pattern will generally indicate more weekly chart selling down the road. So where are the support levels for WDAY stock? There are several important support levels coming up. The first support level that I see is the 200-day moving average at $98.42. This moving average will be major daily chart support if price trades directly into the level. Should price consolidate above the 200-day moving average then that area will become minor support. In other words, watching the pattern develop is extremely important, you must see how a stock trades into a particular support level. The second major support level will be around the $95.00 area. This is where the 50-week moving average is located. This will likely be a major support level when tested as long as price comes directly into that support level. The next major support area for WDAY stock will be around the $90.50 level. This important area is where the stock broke out in May 2017. If you have been reading my work over the years than you know that prior breakout levels are often major chart support when retested. Again, it is very important to see how the stock trades into that level, the chart pattern is always critical and it can change the odds of the trade. Nicholas Santiago InTheMoneyStocks
Why I Shorted The Transportation ETF $IYT... This is a pretty straight forward trade. The daily Transportation Index ETF $IYT jumped from $173 to $187 in three days. First, this makes it overbought for a swing trade short. Then you note the major trend line price hit today that stretches back to 2015 and the multiple technical indicators screaming overbought. Lastly, add in that this run is factoring in tax reform, which means there will be little further risk even if tax reform gets through (which is likely). This is a solid risk/reward swing trade short. I would like to see a pull back minimally to $168.00. Gareth Soloway InTheMoneyStocks
This Video Game Stock Should Be On Your Trading Radar Leading video game developer, Electronic Arts Inc. (NASDAQ:EA), has been under selling pressure since August 31, 2017. At that time, the stock traded as high $122.79 a share. Today, EA stock is trading lower by $4.25 to $101.78 a share. The video game giant stock is now trading below its important 200-day moving average. This tells us that the stock is weak and should trade lower before finding institutional sponsorship. Traders and investors should now look for major chart support around the $96.50 area. This level is where the stock broke out in May 2017. Very often, this prior breakout area will be defended when it is retested. Traders and investors should keep this support level on your radar. Nicholas Santiago InTheMoneyStocks
Clovis Oncology Inc (NASDAQ:CLVS) Sinking But Getting Attractive Clovis Oncology Inc (NASDAQ:CLVS) is leading biotechnology company that is focused on developing and commercializing anti-cancer agents globally. This stock has been under pressure since peaking on July 1, 2017. At that time, CLVS stock traded as high as $99.45 a share. Today, the stock is trading around $59.00 a share. This is about a 40.0 percent decline in the stock in the past six months. The stock is now trading down towards its 200-week moving average. This important moving average is around the $55.00 level. This area should serve as major chart support when it is tested. This is a very attractive area for a bounce in the stock. Now please understand, all biotechnology stocks do have a lot of risk in them. So the way that I will trade the stock will probably be with a call option. By using options I will simply be risking the premium paid for the call option, therefore knowing my maximum loss if I'm wrong on the trade. The positive upside of using a call options is that the potential percentage gain will be much greater than if I actually bought the stock outright. Nicholas Santiago InTheMoneyStocks
The Chart That Told Me To Short Costco Wholesale Corp (NASDAQ:COST) Costco Wholesale Corporation (NASDAQ:COST) was upgraded yesterday. Mind you, this came after a run in the stock from $154 to $188. For some reason, an analyst thought it was the right time to upgrade Costco after a huge run like this (I don't get it). Anyways, the stock opened higher and then sold off. The reason for the reversal was because the stock slammed into a great resistance trend line (as seen in the chart below). This triggered my short. This is a no-brainer trade in my opinion as the stock was so insanely overbought that it was a huge pullback opportunity. Add in the massive trend line and it likely is a recipe for profit.
This BUD (NYSE:BUD) Is For You Anheuser Busch Inbev NV (NYSE:BUD) is a leader in the beer brewing industry. Recently, the stock has been coming under selling pressure. BUD stock has been declining since topping out on October 10, 2017 at $126.50 a share. Today, the brewing giant is trading lower by 0.24 cents to $112.73 a share. Traders should note that BUD stock is now trading below its important 50-day moving average. This chart formation puts the stock in a weak technical position. The next major support level for BUD stock should be around the $109.00 area. This is a very important retrace level and a place where the stock was defended in July 2017. Often, these chart factors will provide a very solid chart level for a bounce and long trade in the stock. Nicholas Santiago InTheMoneyStocks
Ciena Corp (NYSE:CIEN) Tanks After Earnings, Watch This Level Today, leading computer networking company, Ciena Corp (NYSE:CIEN), is tanking after reporting earnings. The stock is falling lower by nearly 5.0 percent to $20.24 a share. CIEN stock is now trading below its 50-day moving average, this puts the stock in a weak technical position. The monthly chart is now signaling further downside for the stock. Traders must now look at the $16.75 area as the next major chart support level. Very often, when a stock declines so sharply in a single trading day it will take time before it will be defended by the institutional money crowd. I will be keeping this stock on my watch list until the equity drops into this important support level. Nicholas Santiago InTheMoneyStocks
Shares Of Endo International $ENDP May Have 50% Upside, Note This Chart... In recent weeks, pharma plays like Valeant Pharmaceuticals Intl (VRX) and Teva Pharmaceutical Industries (TEVA) have surged. Valeant is up almost 100% since October and Teva is up almost 50%. In other words, pharma has become a hot sector as Trump's corporate tax cuts near finalization. One pharma stock that is lagging but has a gorgeous bull flag is Endo International (NASDAQ:ENDP). I have placed this one on my watch list. Should the bull flag start to breakout with price pushing over $7.75, it becomes a strong buy with major upside potential. The upside potential target is $10.65. This would be a catch-up trade to the other pharma plays like Valeant and Teva. Gareth Soloway InTheMoneyStocks
Gold Mining Stocks Keep Falling, Know This Trade Level Many of the leading gold mining stocks have been declining since September 2017. The highly followed VanEck Vectors Gold Miners ETF (NYSEArca:GDX) peaked out on September 7, 2017 at $25.58 a share. Since that high pivot, the GDX has traded down to the $21.50 level and will likely fall lower in the near term. Leading gold mining stocks such as Newmont Mining Corp (NYSE:NEM), Royal Gold Inc (RGLD:NASDAQ) and Randgold Resources Ltd (GOLD:NASDAQ) are now trading below their important 50-day moving averages. This is signaling near-term weakness for the industry group. Randgold Resources Ltd (GOLD:NASDAQ) is one gold mining stock that has caught my eye. This stock should have solid chart support around the $86.00 level. This area is where the stock was defended in July 2017 and will likely serve as support when initially tested. Randgold Resources Ltd (GOLD:NASDAQ) could be setting up nicely for a long side trade this level. Nicholas Santiago InTheMoneyStocks
