The NASDAQ-100 Aroon indicator triggered a continuation long signal yesterday. In addition, many of the IBD50 winning stock picks on the watch list are either set up and ready break out or in the process of moving higher.
NDX-100 Signals Continuation of the Bullish Trend
Nasdaq-100 Aroon indicator triggered on Tuesday as Aroon Up (green line) popped sharply to the 80 zone. To complete the signal Aroon Down (red line) should continue lower over the next few days. Monitor, similar to what we did in December and in late March to a lesser extent.
Volume has been very steady as price action rose above the 5845.15 pivot high. We anticipate the 5897.69 pivot will be tested today or tomorrow. If this bullish momentum continues, we will also consider either adding to existing swing positions or we might start new short term swings. Many stocks are reporting over the next couple of weeks.
ATVI is setup
Activision has earnings scheduled for August 3, so this would be an earnings run type of play. This means we would swing it for a few days if it breaks higher. We intend to exit prior to the earnings report.
Technically speaking, we just need volume to push prices above 61.50, as RSI and MACD suggest momentum will continue.
Watch the 60-minute chart for confirmation. Prices should follow the current path. RSI is rising and MACD is just now turning back up. Note the shorter histogram bars pointing to a cross of the zero line as stochastic resumes the current up cycle.
Additional stocks on the IBD50 and watch list presented this week are breaking out as well. AMAT, CBG, CTRL, EDU, ESNT, ICHR, PYPL, SINA, and TAL should continue pressing higher levels as the Nasdaq-100 suggests.
Bonus Stock – TSLA
Tesla will either break higher or lower. While that seems obvious, what I mean by the statement is precisely what I am thinking. Comments below and on the chart.
Price action will dictate direction. If “they” want it higher we will see price action break above the moving averages. If that happens, we should test the broken trend line at a minimum. ( blue arrow).
If “they” want the stock lower, we’ll continue to see resistance here, the completion of a right shoulder (RS) and a measured move of about (-80) give or take, should the neckline break. EPS 08/02.
Have a great day!
Vinny