3 Tech Setups That Look Tantalizing

 | Sep 18, 2017 | 3:00 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:














In a change from my usual approach of focusing on one setup, today I have decided to take a look at seven different setups that I find appealing. You can see the charts and analysis of my first four picks -- Amazon (AMZN) , Expedia (EXPE) , McDonald's (MCD) and the 20+ Year Treasury ETF  (TLT) -- here, on Real Money Pro.

And without further ado, here are my three final picks: Tesla, Netflix and IBM.


Since there are many participants that continue to be excited about Tesla (TSLA) , I thought I would throw in my upside targets on this name. We just made a minor target at the $380.38 area. I would continue to buy pullbacks in this name, however, until proven wrong. Why? Well, because I have higher targets at $389.79-$393.58, and then a bigger-picture target at $409.80 -- above the market.

Please don't buy new highs, though. It's a safer bet to wait for a symmetrical pullback, as we saw a couple of weeks ago. Why? Because that is when I can identify a relatively low-risk entry vs. an entry that's more like playing craps in Vegas.

This setup on Netflix (NFLX) was originally based off of symmetry and a 0.618 retracement on the weekly chart. I love using this combo, when I see it in the direction of the trend. It took a while before we started seeing triggers on this one, but it's finally playing out nicely. I would look at pullbacks for a new entry, for those who are not yet in this one.

The support I want to see hold at this point comes in between $178.82-$181.39. As long as we hold above here, I would consider new buy triggers and look for an eventual upside target at the $198 handle. I will ditch my long position, however, if we don't hold above this same support, and I will wait for the next clear setup beyond that before considering another entry.

Here is an update on IBM (IBM) , which I wrote about a couple of weeks ago. Key weekly support did end up holding in this stock, and we did see a bit of a rally, but I have a couple of projections I want you to be aware of. These projections offer potential resistance levels to the recent rally that must be cleared if it is going to continue. They come in at $146.54 and then $149.03. Note that these levels come from projecting the prior rally swings illustrated on the chart, above. My vote is for clearing this area, since I did take the long side! I am wrong if the weekly support is violated below the $137.80 area.

Bottom line: I just apply the same work over and over and over again. Some of my setups play out nicely -- and some of them are a bust. The good news is that the ones that work typically make up for the smaller, defined risks on the ones that don't work out.

Carolyn Boroden is a regular contributor on Real Money Pro. Click here to learn about this dynamic market information service for active traders.

Columnist Conversations

In GS I see key price support at the 224.49-226.42 area.  I also have timing for a possible low.  I ...
Tesla (TSLA) has tested our long-term bounce zone @ 283.90-258.95 a few times. These have been BUYING opportun...
We have a big winner here, let's roll it up to a higher strike   SOLD SRPT NOV 140 CALL AT 26 (in ...
We still like this name and want to give it more time. SOLD AAPL OCT 220 CALL AT 6.9 (in at 10) BOUGHT A...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.