Stocks and triangle patterns

Stocks and triangle patterns

2021-05-14 • Updated

Moderna: rise again to $180?

Moderna's weak financial performance made the stock price tumble recently. Yet, we have the zone above $180 as an important strategic resistance that has already sent the price downwards three times since the end of 2020. Currently, the price is supported by the 50-MA and 100-MA. A very likely scenario is that the price dips below them first - that would mean it goes under $145. After that, if bulls press on, $180 may be reached again. Will it be eventually crossed? Very possibly. First, let's watch if the price makes a U-turn around $145. 

Recommendation

Watch the price movement around $145 and 50-MA/100-MA; if an upward reversal confirms formation, buy at $150 and hold to sell at $180.

MRNADaily.png

Activision Blizzard: things not going good?

Trading under $94, the stock price is at the crossroad - which is visible with the crossing MAs. Above all, it means it's quite unstable. But if the triangle formation proves to be correct, the stock price will likely plunge to $88 and possibly much lower than that before it starts making a new long-term uptrend. 

Recommendation

If short-term timeframes show local bearish formations, that may be a beginning of a local downtrend - sell above $92 to buy at $88.

ATVIDaily.png

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Apple: a strong long-term outlook

Business-wise, Apple has good prospects, both in the long-term and mid-term. What it's going throw now is possibly a local drop that may turn out to be a sideways period. However, it already confirmed that zone $137-145 is a resistance channel that was entered several times before - the stock will return to do the same. Therefore, holding may be rewarded by an uptrend that finally breaks $145. That may be long holding, though - prepare for position trading here. 

Recommendation

Wait for the stock to start reversing - it may happen at the support of $116 - once the reversal is confirmed, buy and hold to sell ta $145.

APPLEWeekly.png

Tesla: more falling?

$550-600 is definitely a formidable support zone. The stock price is right in that zone now. The first scenario is that this zone sends the price back up again - the possible target for bulls would be at $770. If there is no bounce upwards, then you may expect it to go all the way down to $400. Tesla's outlook has enough dark spots to back a plunge this deep.

Recommendation

Watch if the stock resurges to the upside from the support channel $550-600. If 200-MA and $550 get crossed downwards, sell at $540 to buy around $450. 

TESLADaily.png

Disclaimer

FBS Analysts are a team of ordinary people - not clairvoyants. All the recommendations expressed in this article and any other are mere opinions and under no condition should be taken as guarantees of what will happen in the future. Learn the market, practice an informed decision-making, and elaborate a reliable Forex strategy of your own. Trade responsibly. 

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