Forecast for 24Nov14 to 28Nov14

Welcome to SGWiseInvestor once again. 

Yesterday we have news from China (ie hike in interest rate) and Europe (Draghi indicating that more stimulus had been implemented). Lets us look at how they close yesterday.

DOW JONES FORECAST

SPY – DOW JONES Daily Chart (a)

 SPY – DOW JONES Hourly chart (b)

Let me have a briefing of what we will expect DOW JONES next week? More upside or downside?

From the Daily Chart (a) we can see that there is a gap up and closes off below with high volume. This is a bearish signal. In order to see if it is Demand or Supply, we have to drill more into the Hourly Chart (b).Gap is filled on the hourly chart with shadow decreasing and BUY bar with high volume. Smart Money are pushing it down for more buying. We should see more upside this week or at least consolidating. Every DIP is a buy.

China Stocks

BABA – Downward Pressure?

BABA shares has been on the pullback on the past few days. Yesterday pullback indicated BEARISH signal. However this is accompanied by decrease in shares. Do you see high volume shares with big dip?

It is just purely marking down by money market and creating fear to retailers and also short term holder to protect their gains. However, from my point of view this is just a pullback for more entry. Always remember the cause and effect. In order for a stock to move it has to accumulate enough, test the background if there is any supply before the next explosive big move will come.

WUBA – 58.com

WUBA rises to high of 47.34 before closing at 46.28. what is your view? My view for this is that there will be consolidating at the moment. Monday should be a pullback unless big volume from Smart Money comes in. Yesterday candle indicated that there is not enough strength and lag of participation from the Smart Money. It will likely pullback slightly before approaching the resistance with stronger volume. Yesterday move is basically retailer pushing up the price together with the good news from China and Europe. They closed their position before the market closes. There are still some holder thinking it will rise forward.

Qihu

There are continuation of buying pressure. However it will be consolidating for the time being. We should see further upside coming soon. It will test 75 and target should be 88. Long Term investor can invest a bit of money in this as it is a company good at their earnings.


SEMI-CONDUCTOR

INTC –INTEL

What is coming next?

Daily Chart

2-hours Chart

5-mins Chart

INTC share fell when DOW JONES are Strong. From the Daily Chart we can see that when it reaches 36.5 high, it is pushed down by the BEAR with high volume. BEARISH indeed. We will have to drill down to 2 hours Chart and to my surprise I see that the down bar is accompanied by the decrease volume. Doji appears and that shows that strength is behind the background. I attached the 5 mins chart to show all readers who come to my blog that the shares are currently consolidating at support 35.50 big support. We should be seeing more upside in the coming weeks.

MU – MICRON

Love this chart. MICRON is now the strongest in semi-conductor list. INTC is currently in Moderate Bearish mode. From the chart above, yesterday up bar is accompanied with high volume. This is good news. It’s a no-brainer. We are going to test for 35 next week for sure given the strength. We should be seeing a breakout above 35.

FB - Facebook

FB is consolidating sideway.  Yesterday price action shows that is closing higher low with increase in volume. Monday will likely be a down as I can see that there are selling. The overall is still in downtrend as such it will be good to hold short rather than long until 30SMA cross over 10SMA. Overall look for this share is bearish.

TWTR - Twitter

It seems like Twitter has reached the bottom and consolidating sideway. It is not ready to move up yet. Long-term investor can look at this support and buy some. There should be a dip coming soon when the 30SMA and 10SMA cross over. (this is the supply test). Thereafter it will march higher and looking at 46 price target to fill up the gap

GPRO - GOPRO

GPRO is currently bearish. There are continuous selling. One good thing is that the volume decrease as compare to the day before. However, do not act on impulse and be greedy. There are still room for it to reach 65. Short term investor should buy at this level for minimal risk and high rewards. Price target is 86.

NFLX - Netflix

This stock is going down! There are a lot of selling pressures at the moment. It will test 350 in the coming week and probably 330 in a month time. More downside expected. Unless we hear some rumors or merger announcement else there is unlikely to have any reversal at the moment.

Financial Sectors

C - Citigroup

Citibank is not ready to move. The accumulation is not done yet. Buy at Support at 52. Short Term Trader – 54. We should see it burst to the upside in no time. We should see at least 60 given the length of the accumulation.

BAC - Bank of America Corp

BAC has Morning Star candlestick with high volume. Good that it is not explosively high. However this may indicate more downside pressure coming. If the downside pressure can go below 16.80 we should be seeing it dipping to 16.12.

JPM - JP Morgan

There is a big pullback with increase in volume. Bearish. Although it is still in the uptrend, believe on the short run it will be consolidating sideway.

Overall:

Financial markets are lagging behind DOW JONES. You may not get the risk and reward that you want. I view for this is that currently there is no indication that financial will lead and breakout. Thus I will risk my money for short run. Mid-term is justifiable as I can see further upsides.

Consumer Sector

EBAY

Support is at around 54. Short Term trader can look at 25-54 range for swing trade. This stock is keen for further upside. Watch! It will test for 57 in a few week time.

PG – Proctor & Gamble Co

Short Term Trader should look at price at around 87 to 88 for swing trade. This stock is keen for further upside. Watch!

AMZN - Amazon

Short Term Trader should look at price at around 328 for swing trade. Monday should be a day when the stock dip. Look out for buying opportunity in this stock. This stock is keen for further upside.

TSLA  -TESLA

Monday this stock will dip lower because there is increase in selling pressure. If the share price dip and close with white candle, indicate that there is buying pressure. You may want to buy and hold. The stock will increase gradually given the volatility of the shares.