Please enable javascript in your browser to view this site!

Special report-Technical Analysis of NFLX, IBM, GS, JNJ, PM ahead of Earnings

IBM- Weekly-  A poor risk/reward for longs given its rally UP to , but not OVER key trendline resistance with some recent evidence of cracking this trend in the last couple weeks

Similar to US Equities as might be expected the trend is mildly negative over the last couple months, but still within striking distance of highs.

UNDER 152 is important for IBM, & would lead lower down to 146.60.. while for any bullish stance, IBM will need to show some improvement in its structure with an initial move over 158.50 but really over 165 helps this structure tremendously.  For now,  near-term momentum has begun to wane, and technically this stock doesn’t have much interest as a long until it can either consolidate some of the gains from early this year, or make further progress to get OVER these key areas of resistance directly above.


IBM- Daily-  IBM when dialing in a bit closer to the near-term daily chart, we see that the uptrend from early this year was broken and then retest attempts also failed.

The stock has been churning near September lows and wouldn’t take much to get below these areas which would cause a larger pullback into late October/ November


NFLX-  -  A good risk/reward long ahead of earnings given the pullback to near its four-month uptrend as part of a larger neutral pattern which has spanned most of 2016

Key to note:  NFLX rose early this month to the highest levels since April before showing some consolidation over the last couple weeks.  This has helped to improve momentum and help to steepen the uptrend over the last couple months and now this pullback should provide a more attractive risk/reward entry for longs-  Important levels for NFLX lie at 97 on the downside, which if broken, would warrant caution and postpone this advance while the stock likely tests Sept lows at 93.26-  Above last week’s 104.45 highs would help to improve the structure even further and suggest a likely start to a bigger bounce.  For now, longs are suggested, looking to add over 104.50 while cutting exposure or hedging under 97


JNJ- Daily-  Little to no real damage in JNJ despite the severe downdraft that’s hurt most within this group and this has proven quite range-bound with 117-120 containing most of the price action since August-  A break below 117 would cause a larger breakdown while over 120 should be a real positive.  Overall this looks like one to favor within the group though given its relative strength among real weakness, so longs are favored more so than shorts while keeping the 117 level in mind should JNJ get below this (as a level not to immediately buy more, but to look to hedge)


PM- Daily-  Signs of a bigger breakdown just in the last month with PM’s breakdown of a level of support that has held lows in PM since early this year.

The daily pattern resembles a giant TOP and until the stock can regain 98, it’s right to avoid PM and/or not buy stock until it can show further consolidation and/or get down to a better level of support

Based on recent price action, selloffs down to 93 and even 89.75 look likely.  So technically this is one to avoid/short until we see pattern improvement

PM- Weekly-  Another perspective with Move to new highs into this year now faltering.. so I expect a probable pullback into one of the zones shown below before this can move back higher

For now, the trend in this remains strong but wavering in the intermediate-term and definitely poor in the short term.  PM would benefit from a pullback down to 93 before getting too aggressive in buying, technically

Goldman Sachs- GS-  Movement up to former highs has caused some stalling out in GS and as the chart shows, the broader structure has improved for GS, but near-term it remains choppy and definitely range-bound between 160 – 173.

A pullback to 165 looks more likely between now and the next couple weeks , but given the intermed. Term strength, one would look to buy into weakness with only a move down under 158 causing concern and/or warranting hedging