It is interesting to note that the stock market is still in a nice uptrend despite the presence of the Coronavirus. Uptrend is still intact and good and we should continue to remain positive on the stock market until the trend changes. The latest analysis will be on the top. I write as much as I can but sometimes I do not have the time to do so. Hopefully, I will be able to update everyday in this month of July 2021. I have found that if I update the pages here, I myself also benefit from these analysis. So I guess it is both ways. You benefit and I also benefit.
Homebuilders ETF or the XHB has risen quite a lot. The rising daily 200 MA still points to the long term health of this sector. When people are able to purchase homes and furnish them nicely, then this points to consumer wealth that is growing and this indeed points to a growing economy.
Recently the XHB made a double bottom after a sell off. This is good as it is a bullish reversal pattern. As long as the XHB stays above the lows of this pattern, I believe that it will continue to move higher and maybe make new highs. This in turn will also help to lift the stocks in this sector.
Microsoft is one of those stocks that have gone up non stop over the years. Ever since CEO Satya Nadella took over the reigns, its stock price has increase many fold. The daily chart below shows us that the stock is still on a very bullish note. It is still above its rising daily 20 MA and rising daily 50 MA. This points to a short term bullishness as well as long term bullishness in this stock.
There are 2 areas of support that you should watch in this stock. The first one being the one around the $275 area which I have put in green color. This will be the short term support. If MSFT manages to stay above this area, then it is very likely to continue its bullish run up and continue to make new highs.
The 2nd area of support to watch in this stock is around the $260 area. This will be an area to watch if there is a bigger correction in the stock. The rising 50 MA will also be a support area to watch. If the stock corrects and drops to the 50 MA, then it might find support there and bounce back up.
I like how one stock can go up and up and up rewarding the faithful and long term investor. The monthly chart below shows us that MSFT has gone up many fold since 2014. Making a series of higher highs and higher lows, MSFT is indeed a gem for the long term investor. The stock has stayed above the rising monthly 20 MA for a very long time. It has not gone below it for a long time. And as long as the stock stays above this rising monthly 20 MA, the long term investor should continue to be bullish on this stock.
Amazon one of the popular stocks in the Nasdaq has broken out of a trading channel recently. I have drawn to channel using a green color and blue color. You can see how it broke out of a weekly trading channel not too long ago. If you remember your technical analysis correctly, a long term resistance area once broken out of will now act as a long term support.
I believe that as long as AMZN stays above the green area, finding support there, then it can continue to move higher and make new highs. Since AMZN is a portion of the Nasdaq, it will give a psychological and meaningful boost to the composite and help it to move higher.
Even in the midst of the pandemic, AMZN is doing very well. Online sales does indeed change the world even in a pandemic.
Netflix is one of the favorite stocks of the people. Well known and its services reaching almost anywhere that has internet. With the pandemic, people will be spending more time at home and binging on movies and series.
It has also expanded its catalog to include original Netlfix series that cater to local taste. One recently title "The Rational Life" that caters to Chinese speaking audiences aims to capture this segment of the market.
NFLX is right now at its 50 day moving average as well as the 200 day moving average. A powerful support combination. At the same time, the stock is at a prior high support area.
Notice the many dojis as well as one bottoming tail that hints of a slowing down of bearish momentum. Stock is a bit pricey to play, so options might be a good choice. Its oversold on the stochastics as well. I did not show it but you can check it yourself.
If NFLX manages to find support at this area, then it is likely to bounce back up.
Apple is set to announce its earnings after the market close. How will it perform? It might gap up or down. If it gaps up then it will be good for the markets and if it drops then it will affect the market in a negative way.
Sometimes we can take lessons from the weekly chart to have a look at the longer perspective.
Right now, the weekly chart of AAPL shows us that AAPL is in a long term uptrend. In fact it is making a kind of ascending triangle pattern. The top will act as support and if AAPL stays above this area after the earnings come out then it is very likely to continue to move higher. The rising trendline can also act as a support. In the event that AAPL gaps down after the earnings, the rising trendline can act as a support.
I think that as long as AAPL stays above these two areas, then it will continue to move higher in the long run.
If in the midst of a pandemic, the United States stock market can make all time highs...
Imagine what it can do when the world is rid of this pandemic. After all the companies in the S&P 500 are the greatest companies in the world with a reach to almost all countries in the world.
Think about Apple. Who doesn't want to have an iPhone?
Even people who are not so well off can sacrifice some other things in life just to have an iPhone. It is more about necessity nowadays rather than luxury.
Hope you are keeping well during this time. Stay safe and be careful to take all precautions to keep yourself from being infected with Covid.
The above is the weekly chart of the S&P 500. Note how much it has gone up since the month of March 2020. Almost doubled in price since the low set in March 2020. The S&P 500 has made a series of higher highs and higher lows and this is a classic definition of an uptrend. Notice lately the S&P 500 made many weekly bottoming tails. This shows some sell off as the market made new highs but they eventually recover to the price that it started at the beginning of the week. Telling us that the market stull refuses to go down. The red line will be the rising weekly 20 MA. Of course it was not rising back in the early months of 2020 but it has been sloping upwards since the 3rd quarter of 2020.
The SPX has not fallen below the rising weekly 20 MA for a very long time. The weekly 50 MA is also rising and this shows that the very long term trend is up. With the rising 20 MA above the rising 50 MA this tells us that the trend is indeed very bullish. I think one should continue to remain bullish in the US stock market for the long run. Sure there will be corrections here and there but do not be mistaken. The long term trend is still up and dips should be bought.
Jul 30, 21 09:54 AM
Take a look at the various charts of the stock market for the month of July. Interesting to note that the uptrend is still intact.
Mar 23, 21 08:25 AM
This week let us take a look at the SPX and TSLA. See what we can learn from their charts.
Mar 19, 21 05:24 AM
In this week we will have a look at Bitcoin, ETN and MAT, SPX and QQQ and see what we can learn from its chart.
Mar 09, 21 08:33 AM
In this week's lesson, let's take a look at bitcoin and makita.
Mar 03, 21 09:48 AM
In this week we will take a look at BRX and KIM and see what we can learn from the charts.