Take a look at the stock chart of Fitbit Inc (NYSE:FIT) over the last week. Not only is the stock up off its 52 week lows, there is a bullish pattern formation nearing major breakout. In addition, as the markets are taking a beating today, Fitbit Inc is slightly higher, showing great accumulation. Last quarter, Fitbit Inc reported solid earnings and actually shot sharply higher. However, bearish sentiment and shorts pushed it back down. After tagging the significant even-number $5 in recent weeks, things appear to have changed. The shorts are no longer able to push it down and the bull flag formation over the last few days is nearing blast-off. The key to the breakout is price trading above the daily 50 moving average. Once that happens, it likely squeezes to the daily 200 moving average at $7.95. That means there is a possible profit of 50%. This is a fantastic risk/reward trade setup.
One of the most diversified companies in the world is General Electric Company (NYSE:GE). Recently, the stock price jumped higher after a new CEO was announced, but since that spike in the share price the stock is now starting to retreat lower again. Today, the price of GE stock is trading around $27.00 a share.
Many traders and investors may think the stock is on sale since declining from its recent peak of $29.24 made on June 12, 2017. Unfortunately, this stock has lower to go before finding a solid trade worthy bottom. Traders and investors should now look for the stock to trade down to the $25.90 area. This is a level where the stock broke out of a two year trading base. Very often, These bases will serve as major institutional chart support when retested. This is the reason why the stock charts are more important than the news.
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AT&T Inc. (NYSE:T) pays a 5% dividend. The stock is a blue chip that will likely be around for decades to come. Based on these factors, investors like myself look to buy AT&T Inc. on any solid pull back, as long as the stock is into major technical chart support. Think about it like this, even if the stock does not move from your entry, you make 5%. Even if it falls 5% you are flat. In addition, you are buying it at a technical level that puts the odds in your favor significantly of major upside. This is how I think. After saying that, AT&T Inc. is approaching very serious technical support. I am a major buyer of the stock when it hits $35.95. I expect as much as a 10% swing trade bounce off that level, perhaps even more. Add in the 5% dividend and I see this as an obvious investment for longer term investors.
Kellogg Company (NYSE:K) manufactures and markets ready-to-eat cereal and convenience foods in the United States and internationally. The share price in Kellogg stock have been steadily declining since July of 2016. At that time, the stock price traded as high as $87.16 a share, today Kellogg stock is trading at $69.98.
Long term traders and investors should now watch the $64.00 level for major chart support. This is a level where the stock price based for over a year before breaking out to new highs in 2015. This chart area should be defended by the institutional crowd when it is retested. It should be noted that Kellogg Company is expected to report earnings on August 3rd, 2017 before the opening bell.