Futures are down this morning with the debt ceiling deadline quickly approaching. Let’s look at the Paper Trade Portfolio.
BWA closed up 3.23% yesterday at 47.64. Cost basis was 46.15 giving the portfolio a $1.49 / share gain. The 50-day SMA should now at as support with resistance found around 48.98. All oscillators are in the green and price is currently above all the critical moving averages.
STX closed up 1.11% at $62.95. With a cost basis of $62.26 this provides the portfolio with a $0.69 / share gain. The 50-day SMA is about to cross above the 200-day SMA (Golden Cross) which is considered bullish. Support will be at the 200-day SMA finding resistance at 64.87. All the oscillators are green, and price is above all the critical moving averages.
ANET closed up 1.46% at $145.37. With a cost basis of $143.91, this provides the portfolio with a $1.46 / share gain. The RSI is just below the 50 level, so keep an eye on that. Support will be around the 20-day EMA with resistance at 149.26. Price is still trading below the 50-day SMA.
BRKB was the only disappointment yesterday closing down 0.38%. The MACD is just barely above the signal line and the trading pattern is sideways. Price is still above the 9-day SMA which provides a level of support and an area to consider stop limits.
There were a few stocks that have graduated from the Horizons List this morning so let’s take a look.
ATVI has an RSI that just crossed over the 50 level with a reading of 50.64. We want to see more strength with the RSI. The Stochastic and MACD are above the signal lines. Price closed at 79.06. Support will be about the 2-day EMA at 78.51 (0.55 downside potential) with resistance at 80.39 (1.33 upside potential).
FOLD closed above the 200-day SMA with price action wicking up to the resistance level at 12.18 for the second day in a row. Current price is 11.80 showing a potential $0.38 upside. Support is at the 200-day SMA which is $0.14 below yesterday’s closing price. The MACD is flat, but appearing to want to trend up.
TDY shows all three oscillators in the green. Support is at 416.27 (20 EMA) or $4.34 below the current price. Resistance is 424.61 or $3.70 above the current price. This shows upside potential is less than downside potential. Most traders would either pass on this trade or set a buy limit closer to support levels in hopes of improving your risk / reward ratio.
Futures are down this morning, so even though stocks may meet the requirements of your trading guidelines, the indicators used are lagging and therefore are not including the parameters of market conditions such as the outcome of the debt ceiling discussions or fed interest rate hikes. Market conditions and your risk tolerance should be considered within your swing trading plan when considering entering or exiting a position. There is no need to rush into a new position. Be patient.
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