A Quick View of Levels to Watch in Leading Stocks XOM, GOOG, and AAPL
By Corey Rosenbloom | December 18, 2009 | 12:24 PM | 0 Comments
Sometimes, when trying to assess the broader market, it can be very helpful to look at the daily or even weekly charts of leading stocks that have a tendency to give us an early 'heads up' on turns the broader indexes like the S&P 500.
Let's take a quick, "fly-by" view of leading stocks Exxon-Mobil (NYSE: XOM), Google (Nasdaq: GOOG), and Apple (Nasdaq: AAPL) including key levels to watch for a break which would give us a clue regarding the possible near future of the S&P 500.
First, let's start with Exxon-Mobil (NYSE: XOM):
Quick analysis tells us that the $68.00 per share level holds the clue for the next likely swing in Exxon-Mobil.
If buyers can hold this level, it would be bullish for the broader market, though if sellers can crack confluence support of the 61.8% Fibonacci Retracement along with the two trendlines I have drawn here, it would be a bearish omen for the broader market. The next support level under $68.00 appears to be the prior price support at the $66.00 level.
The last time I analyzed XOM was on October 15th when I highlighted the tight triangle consolidation in price and called attention to the breakout of the triangle, which gave a minimum upside target of $75.00, which has been hit. See the prior post: "An October 15th Update on the Triangle in XOM") http://blog.afraidtotrade.com/an-october-15-update-on-the-exxon-mobil-xom-triangle/
The trendlines from the triangle have extended to provide a possible floor under price ... but if sellers are aggressive, they will break the support level so watch closely.
Next, let's take a quick look at high-flying Google (Nasdaq: GOOG):
I'm showing the Weekly chart here to call your attention to the significance of the $600 per share level. This price reflects an important resistance level that, if broken, would likely clear the way for a move to test the $725 highs over the next few months or longer.
However, if sellers can push price lower and $600 proves to be a resistance level, then Google would decline to challenge lower support, perhaps back to the $525 level.
Watch the support of the 20 day EMA (not shown) at the $590 level, and if broken, look for a play to test the 50 day EMA (not shown) at the $560 level. Should Google's share price fall under $560, it will have broken key daily chart support, so we'll look to weekly EMAs as shown above for possible inflection points.
So, for now, the $600 level is key.
Finally, let's see popular stock Apple (Nasdaq: AAPL) for an upside and downside level to watch for clues to the future:
Apple appears at first glance to be forming a "topping" or distribution pattern, but we look to price levels for clues.
The dominant short-term trendlines in Apple include those I have drawn, which place price within a triangle consolidation pattern.
The upper resistance level comes in at the $195 level, which reflects both the 20 day EMA ($195.85) and the upper trendline as shown. A move above $196, and especially back solidly above $200, would clue us in that higher prices were likely.
Until that happens, the lower support line is the trendline drawn at $190, along with the 50 day EMA which currently rests at $193.76.
A move under $190 would confirm a short-term (daily chart) trend reversal, and argue for lower prices that could target $180 (the 20 week EMA) or even $160 (the 50 week EMA) along with "Fibonacci" price retracements, which we'll draw on any breakdown of $190 per share.
For now, watch the $197 to $200 zone as the key to expect higher prices if broken, and the $190 level to expect lower prices if sellers push price lower.
It's likely that all of these stocks will break upper resistance together, or break lower support together, and that resolution would give clues as to what to expect with this tight range in the S&P 500 and other US Market Indexes.
Corey Rosenbloom, CMT
http://blog.afraidtotrade.com
Learn the Secrets of Candlesticks with this Free Article from GFT
| 
|
