(This column originally appeared in Helene Meisler's Top Stocks newsletter. Test drive it here with a free trial.)
I can't recall the last time we looked at the chart of Amazon (AMZN), but I recall I have liked the chart for quite some time, having never done anything wrong, although I did not like that it went farther than the gap fill in the August decline. In any event, Friday's action was quite similar to the last two gaps up for quarterly earnings where the stock closed near the lows of the day. You can see the stock went into a prolonged consolidation period. The only way that action in AMZN is bearish is if it gaps down under $575 and leaves Friday behind as an island top. Otherwise I would expect a similar pattern to what we've seen before.
Apple (AAPL) has earnings this week, so it's a spin of the dice, but the breakout over $117 now measures to $127. There is a gap that comes in between there and $130, so if it gets up to $130 to fill the gap, I'd say that's enough. A gap down under $107 measures to $97, which would be a retest of the August spike low. If there were not earnings ahead of us I'd have confidence that $127 would be the next stop.
AbbVie (ABBV) has collapsed, although I do expect a rally back to resistance it now appears as though $55-ish is resistance. That top would also now measure longer term to $40-ish. I would consider myself wrong if it can rally back up and over $57.50.
Forward Pharma (FWP) is a nice chart, although I am not inclined to like any of these small-cap healthcare names at the moment (and haven't been for quite some time). If the stock can get up and over $28 it measure to $34-ish. But be careful with this one because it trades by appointment.
Avago Technologies (AVGO) is a semiconductor stock, so of course the question is if I like it. You can see the resistance here and again at $135, so while I think the chart is OK, my sense is that $135 is going to be a difficult spot to get through for a while.
Jabil Circuits (JBL) has been a stock I have liked since near the lows. That head-and-shoulders bottom measures to $23.50. There is a gap to be filled near $24, so my target is $23.50-$24. Here's my concern: why hasn't it made a higher high already? I'd lean toward taking profits on this one, especially if it breaks under $22.50 now.