Playing the bounce: F, TEVA, ADBE, TSLA
Market finally settled down at the support of the downward channel could potentially bounce in the next session if economic data does not do any major damage. With that in mind, here are few stocks to go long taking advantage of this bounce.
F - Ford has successful bounced off the weekly 50MA quite a few times and it seems it is going to that once again with the price action today with bullish volume and formed a nice hammer on an important support. Here's the weekly chart (Click to enlarge):
Look at the hammer today on the daily chart and bullish stochastic with momentum on the rise:
Here's the Chart Analysis for F.
TEVA - been trading in a bottom horizontal channel between 45 and 56. It broke down below the channel and managed to got back in where it filled the gap. The stock is now halting at a mid resistance where it forms a bull flag pulling back to a short term trend line to what look like a cup and handle pattern if you ignore the gap. If the stock breaks above 51 we could see it goes higher to test the channel resistance at 56.
Here's the Chart Analysis for TEVA.
ADBE - Big inverse head and shoulder on the weekly and ascending triangle on daily with rising support. Expect a bounce here when it touches the trend line with a potential breakout around $36.00.
Here's the Chart Analysis for ADBE.
TSLA - Double bottom in March. Been struggling with a resistance the last 2 months with rising support. A strong momentum move on Wednesday break it out lightly above resistance and looking to continue toward an unfilled gap. Next resistance around 32.50-32.86.
Here's the Chart Analysis for TSLA.
Be cautious with this market, as the bulls still trading inside a bearish channel but the bears have not been that strong considering we have not been down that much in May. It may be choppy but the bulls still seem to be in play. Hedge your positions with some options puts or some weak stocks to protect yourself from another sudden turn in the market.