Technical Analysis: Snap Inc.

Snap Inc. Daily

A much anticipated listing sent this stock bolting in it's first two trading days however the fairytale start wasn't to be as the early birds and profiteers decided to cash in on the good run and eventually collapsed the price below $23.50, a significant point that marked the lowest price since it's listing at the time. 

Since then we've seen much weakness entering the fray with not much support from buyers scoping in on a bargain at lower prices with the current rally reaching back up towards $23.75. 

The RSI has begun to take shape and so far has yet to produce a reading above the all important 50 mark. There's a degree of flattening in the line of the indicator but it's too soon to say whether this assessment is valid given the short period this stock has been listed. 

In saying that, should the price breakthrough the 50 level on the RSI as well as defeat sellers at the lateral line of polarity of $23.75, we could see a fresh attempt to reconnect with the previous all time highs.

Technical Analysis: Delta Air Lines Inc. Part 2

Continuing from the previous post, zooming into the Daily there's a similar pattern of consolidation occurring as we saw on the monthly. 

From the lows of July 2016 the price has been given a mighty push upwards towards $52 amounting to a 57% increase in value in a relatively short period of time. 

This can be due to the turnaround in the fortunes of oil supplies which have been lessening following an agreement by OPEC nations to cut production. 

Currently the price is situated in no mans land and isn't resting on an optimal support or resistance in order to call a direction. 

However if we use the analysis in the previous chart in our assessment of this one it's clear to see that there still remains potential in this stock should we see continued effort by the buyers. 

A price above $52 should see the buyers staging a fresh rally.  

Technical Analysis: Delta Air Lines Inc. Part 1

Delta Air Lines Inc.

Looking at the longer term charts this particular stock has been trapped in a consolidatory motion for some time which has frustrated both sides of the trade. 

The bollinger bands indicates that the price remains in a tight range however it must also be noted that the only time price was able to finish outside either the top or bottom band, the signal produced a false signal. 

This happened during June 2016 and although the break occurred, $35 provided strong support for buyers. Since then we've seen a resurgence of price back up towards the upper band. 

The RSI has been trending to the downside since 2014 but there does seem to be a challenge being undertaken and should this downtrend be broken, an aggressive buying frenzy could ensue. 

Technical Analysis: iShares Silver Trust ETF

iShares Silver Trust ETF

This ETF has formed a sturdy uptrend since the start of the year with a particularly neat series of higher highs and higher lows in place however yesterday's price movements have left many buyers vulnerable and doubting the strength of the existing trend. 

The depth and size of yesterday's candle is a good indicator of the balance of power between buyers and sellers with the latter firmly in control. The stochastic has in place a triple top formation, confirms the flimsiness of buyers optimism. 

All isn't lost as the 50 day moving average moves above a key support area of $16.25 that should act as strength for buyers if the price gets closer. 

Overall it looks likely that we'll see a consolidation take place over the next few weeks with price formation on top of traders mind as the sustainability of the short term uptrend is tested for longevity.

Technical Analysis: Advanced Micro Devices Inc.

Advanced Micro Devices Inc. Daily

The best way to describe this chart; Trend Following 101, there's nothing simpler to spot than a security that exhibits higher highs and higher lows coupled with a strong and steady 50 moving average in the direction of the prevailing trend that correspondingly triggers a buy signal when the stochastic lies oversold. 

It appears as if $14 is standing as resistance to bullish optimism but won't provide much of a fight when weighed up against the strengths listed in the paragraph above and the divergence emerging from the stochastic that indicates the continuation of the trend.

Technical Analysis: Kraft-Heinz Corp.

A distinct pattern that's taken shape since late 2015 is the resemblance of a step structure in the price consolidating for an extended period and then breaking through to the next level in a rather smooth transition. 

What is to be expected is the measure of control that happens behind the moves to the next level of highs or lows. The reason for pointing this out is based on the observation that the price is currently situated near the previous highs with potential to breakthrough those levels. 

The MACD is registering a favourable reading which will be optimal for the buyers in this respect but caution must be shown as the moving averages on the indicator are sitting lowly in positive territory and subsequently look set to turn downwards below the zero line.  

Technical Analysis: Global X Uranium ETF

Following a stable and consistent downward run, this instrument has transitioned perfectly with the bottoming phase being proportionate in the lows registered as well as in formation. There was hardly much of a struggle at $16 as price eased its way past this important resistance mark. 

The ideal target for this setup would be roughly around $22 however it's very likely that we could see a retest of $16. 

Reverse bearish divergence is evident and considering the fact that the uptrend in force wouldn't be classified as dominant as of yet, the downtrend could still play a good part in bring down the price.   

Technical Analysis: Allergan Plc

Allergan PLC.

This stock had a strong build up into the highs of $330 before tapering off and falling back into line of trading normalcy without running away with itself. The pullback down to $195 is a unique figure in the formation of the uptrend to come. 

It's previous struggle at around this level during the momentous runaway does stand out as an oddity but also laid the support for the present pullback to easily find assistance in curbing the seller's enthusiasm. 

There looks to have formed a fairly large inverted cup and handle pattern that's dominated the chart for the last six months. 

Given that the above chart has been taken on a Monthly basis, the anticipation of a break to the downside would've wrote this stocks fortune but not this time. 

A strong bounce off $195 and the proceeding rally close to the highs of the handle does leave bears feeling vulnerable at present. 

The change of polarity in both the 13 day moving average and the RSI gives impetus to the bulls to take things higher from here with the first target being a close above $260. 

From here it's likely that this stock could rally all the way up to $430 in a short amount of time and considering the P/E ratio lies just above 6.5, there's more space for movement than one thinks.    

Technical Analysis: Twilio Inc.

Twilio Inc. Daily

A recently listed company, this stock started off it's debut with a bang having run from IPO price of $15 all the way up to $70 before sellers winded their momentum and sent the price back towards it's listing levels. 

The depth of the fallback was a sheer 57% drop before a throwback set in however effort was feeble and it wasn't long before the sellers took control again. 

What distinguishes the two parts of the downtrend is the characteristic of lows and particularly how they were registered.

In the first phase there was no support whatsoever from buyers which meant price kept sinking past previous lows whereas in the second phase there's a display of buyers gradually stepping in and producing the necessary zeal to allow for a throwback. 

The current rally in place is the strongest yet with signs of buyers emerging by indications of the price securing itself above the previous low near $28.  

Technical Analysis: AutoNation inc.

AutoNation Inc. Weekly

A consolidatory trend has laid claim to activity in this stock over the past year or so after a severe drop in price. The lows of $41.50 that's been tested twice over this period but don't look to be set in stone as most of the price movement has occurred above $44.

Resistance just under $54 has prevented the price from surging higher and delivering the throwback many buyers were looking for.

The stochastic seems perfectly poised to hint at the next direction of the price from it's present state. Although it should be noted that the current rally off the lows of $41.50 back to the top of resistance has been the strongest yet in this cycle of  the trend.

Long tails left to the top of candles together with the area of overbought captured by the stochastic does leave a sense of pessimism.  

Technical Analysis: United States Steel Corp.

United States Steel Corp. Daily 6 Months

Analysis shown on this stock two months ago indicated an incredible run in a short span of time but signs of an imminent slowdown in momentum perking up with a decrease in volumes whilst price levels continued to rise as well as shakiness in a measure of trendiness.

We've witnessed a consolidation phase occur since the start of December till present with a fairly steady shift in price finding shallow support not far from the previous highs.

Observing the behaviour of the price line with the 13 day moving average, the moment price began stumbling below and reclaiming the space above on a frequent basis the consolidation set in. Since then we've seen the 13 SMA follow the price closely.

Any positive shift above the 13 SMA could trigger bullishness for traders looking to capture the next swing higher.

 The $32 horizontal support line looks sturdy enough to hold buyers for a little while longer with a degree of comfort in knowing this.

Decreasing volumes coupled with a slow grinding downtrend could suggest the sellers are running out of steam to drive prices lower.

Technical Analysis: Starbucks Corp.

Starbucks Corp. Monthly 7 Years

This stock has been a consistent performer in years gone by as is seen in the long term chart displayed above. The expected view is a continuation of the upward trend following the recent break out of a bullish flag pattern towards the end of 2016. 

The 50 day moving average is fairly parallel with the uptrend which bodes well for bullish traders. It should also be noted that the RSI, an indicator used mostly for signals of momentum, doesn't show any form of vulnerabilities suggesting the trend will remain. 

Technical Analysis: Alibaba Group Holding Ltd.

Alibaba Group Holding Ltd. Weekly

This stock has performed relatively poor since it's listing in late 2014 although the wide shaped double bottom pattern that took place in between August 2015-2016 has allowed bulls to build enough sentiment to carry the trend upwards.

The impressive 29% gain made from the breakout in eight weeks after the event did give traders a taste of the potential this stock holds. The full target of this pattern indicates $120 however the pullback started occurring at around $110. '

Price has pierced above the 21 simple moving average for the first time since November with a fairly flat gradient. This comes off the successful retest of the $85 region where the breakout took place.

The MACD managed to stay above 0 and avoid going into negative territory placing considerable edge in favour of the buyers. A confirmed close above the 21 SMA will set in motion a move back to $110.

Technical Analysis: Eli Lilly & Co.

Given the extensive downward pressure that's hampered this stock, the long term lateral support of $68 came to the rescue of buyers during November and has since generated a decent bounce with much determination to negate sellers efforts to take control.

Although price is relatively close to the downtrend, the closeness between periods where price meet resistance has narrowed enough to suggest buyers might be setting themselves up to break free from the downward trap. 

Circled on the chart are two points, both at $80 as well as exhibiting long ranged positive candles that gave impetus to the follow up rally that ensued after their respective closes. 

Co-influentially, $80 marks a point where both trending and horizontal resistance are needed to be broken in order to defy the current sentiment.

Technical Analysis: VanEck Vectors Gold Miners ETF

This ETF has started off the year with a shake up in direction away from the predominant downtrend that occupied most of the second half of the 2016. Should the price be able to hold itself well at these levels there is a strong case for the previous support of $25 being touched in the not so distant future.

As mentioned above, the downtrend has broken upward with a of reluctancy from price to proceed higher. The most probable cause of this is a change in dynamics of sentiment with a brief pause in anticipation for further clarity on a continuing or expired belief. 

Observing the 50 day moving average(yellow line) indicates a shift in polarity from bearish to bullish if judging the passover of price above this line a few days back. 

Price movements alongside the 50 MA show a similar course to what is exhibited on the Moving Average Divergence Convergence indicator. From an optimal point of view, traders would prefer to go long when both the price is above the 50 MA and the MACD lies on top of the zero line. 

The occurrence of a comparable action at present does strengthen the argument for higher prices going into the first quarter of the year. 

Technical Analysis: Mylan Inc.

Price consolidation has been the flavour of the month over the past three months after a protracted downturn in sentiment. The 50 day moving average(yellow line) has flattened out substantially with the line now acting as an indicator of polarity. 

The recent move by price over the 50 DMA was a positive signalled for bullish traders however yesterday's sinking performance placed a damper on forward looking optimism for the time being. 

Support and Resistance will be key to the direction of price in the weeks to come with the test of support at $34 producing rebounding price actions while resistance at $40 providing enough opposition to overcome a new found positive sentiment building into the stock. 

Traders will be aware of the break downwards of the RSI below 50 and may have seen this as a sign of a weakening hand on behalf of the buyers spurring on demand but if price action is able to retain it's position above the 50 DMA in disregard to this there's likely to be a big shift in the price in an upward direction.

Technical Analysis: Micron Technologu Inc.

It's clear from a quick glance that the downtrend has broken coupled with a strong accumulation of buyers coming into the stock in the last six months. The steady upward momentum has reached a major resistance point at $20 which most would've thought could slow down the pace of buyers but this hasn't been the case. 

Price has pierced the upside of $20 and looks firm in its placement together with the recapturing of the area above the 200 day moving average adding the element of confluence to this chart. 

The steady uptrend in the MACD shows signs of a strong trend that could ensue in weeks to come as price re-establishes itself above this crucial support. 

Technical Analysis: Blackberry Limited.

Today I haven't drawn the usual upwards, downwards and sideway trend lines that I often exhibit in my blogs but chose rather to highlight an important aspect to keep in mind when considering technical analysis as a form of understanding price movements. 

To the left and right of the chart one will notice diminutive sized candles that hardly help establish the ideal buying and selling points while in the middle of the chart is filled with an explosion of the price range characterised by a rapid rise and fall that's indicative of a bubble. 

Hindsight would tell us we would be correct in our thinking however undertaking analysis on this basis will only show up after the fact. 

The quickening of price in either direction without a sustained test of the trend is never a feasible environment to trade in although the perception might imply it. 

A chart that possesses a smoothness and steadiness of trend as well as showcases neatness are more predictable than one which is erratic  and temperamental. 

Technical Analysis: Barrick Gold Corp.

Gold started the year off with high expectations following a tumultuous 2015 that saw the market come under attack from theme's such as the Chinese economic slowdown and the Fed's decision to alter the course of interest rates in the US to an upward trajectory. 

Needless to say the past few months haven't boded well for it's yearly performance and this stock is a good example of how gold miners have been adversely affected by the sudden weakness in the yellow metal.  

There was an amazing run up to the highs registered in June of this year against the backdrop of a staggering underperformance by this commodity for a number of years. The subsequent consolidation that happened between June and October produced a topping pattern in the form of a Head & Shoulders with the breakdown  occurring at the beginning of October.

Price had initially broken to the downside with a solid red candle but crept it's way above the neckline of the formation that made optimists hopefully of a resurgence however that has been short-lived ever since the price has reversed back down and begun it's descent once again.

Those trapped in long positions might find themselves compromised should the price be able to get lower than November lows with a heavy selloff expected.

The 50 day moving average has a negative gradient that's shaped itself out over the last few weeks which gives impetus to the sellers finding ways in tearing apart a good performance for the year.  

Technical Analysis: Yelp Inc.

A solid uptrend that's been in place over the medium term with a healthy an expected pullback occurring during the month of October. The interesting part about this is the price tested the trendline and responded with a firm candle in an upward direction.

The short term moving averages of 8 & 21 provided the signal for traders to get in but the aftermath leaves little to be excited about. The shorter moving average of 8 (yellow line) has breached underneath the 21 moving average (blue line) suggesting a bearish sentiment taking control over proceedings.

Considering the placement of price currently and the less than desirable bounce off the trendline with a renewed test happening quite shortly after the initial pullback indicates there could be a lack of conviction in this stock.