The resilience continues in equities. I'm relieved to find some diversity among the technical setup in the bullish charts. True, we still have many similar-looking charts, but the view is changing.
In the past week, I examined five charts in very different sectors and four were almost the same. I'm going to switch it up today, looking at four somewhat-related charts with four very different looking bullish charts. I'm being a bit loose with the terminology here, but I'd argue these four names warrant a look
Only two weeks ago, on Twitter, I mentioned Acacia Communications (ACIA) as a possible swing short trade. The stock delivered, but has found support. That support has now morphed into a cup-and-handle pattern consolidating the big August push. While the $20 depth looks large in terms of dollars and small in terms of a visual on the chart, it fits perfectly into the retracement level associated with the breakout gap in August.
This past week, trades established a sideways trading range forming the cup's handle. Now, we simply need a close in the $118-120 range to trigger a breakout higher. A close under $110 will possibly negate the pattern, although I want to see consecutive closes under $110. Any close under $100 will put the bears squarely in charge.
Flip the switch from hot, new money to continued hot, old money and we'll find ourselves staring at Amazon (AMZN) . While this chart isn't as sexy, we have a clearly defined support/stop level at $755 and two patterns. First, the W pattern formed in August is prominent. Within the W patterns are a set of bullish flags. Amazon broke out from the recent flag on Thursday and pushed above previous highs on Friday. Again, strong price action after periods of consolidation, but a very different look than ACIA.
Not every stock has enjoyed a winning August. Criteo (CRTO) has been a big disappointment, but even this name is flashing buy signals. The stock broke out higher from the bear flag formed between $36 and $38. We've seen bullish crossovers in secondary indicators such as the MACD, Full Stochastics, and StochRSI. The stock is still well below its 50-day simple moving average (SMA), but well above the 10-day SMA with $3 of upside until resistance vs. $0.50 in downside until it reaches support.
Weibo (WB) is another bullish name. This has been everything CRTO hasn't been in August. Ironically, the secondary technicals are currently struggling in comparison to CRTO as well. Still, one can't ignore this steady bullish channel. A tight march higher with the 10-day SMA acting as staunch support. This has been the epitome of buy support, sell resistance. Rinse. Repeat. Reap. I would put the downside around $43 if support around $48 fails. While secondary indicators are struggling, there is still no trigger to short or sell under price-support fails. At the moment, this is another why-would-we-sell-it name. I don't own it. I wish I had.
Four very different looks at four not-totally-unrelated names -- all with reasons to own and all provided a notion the bulls aren't done yet.