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5 Stock To Watch, Plus A Gold Breakout – The Week Ahead
Earnings will be in focus, but there are plenty of other stocks that need watching as well. What I’m watching this week will be Intel, Micron, Roku, Netflix, Tesla, the Biotech stocks, the S&P 500 and Gold
Intel shares had a significant breakout on Friday reaching $50, a price not seen in nearly two decades. Investor quickly forgot about all the security issues that plague the company in recent weeks, after the company posted strong quarterly results. But the stock now has a path to climb to nearly $61, a rise of about 20 percent from its closing price.
Micron shares still have been stuck below resistance at $44.75 for some time now, but the good news is that the stock continues to grind higher along a newly formed uptrend line.
Roku won’t report results until February 21, but the stock continues to act poorly. One can see the stock jumped following the Netflix results but quickly gave back those gains. The trend continues to remain lower for Roku until proven otherwise. The relative strength index (RSI) also continues to trend lower.
Netflix shares are now up about 40 percent in 2018, and I’m amazed how quickly the stock price has risen. Unfortunately, the charts tell us nothing, other than that shares are overbought, with an RSI reading of about 80.
Tesla will report results on February 7, and there will be plenty of investors just waiting to hear about the model 3. The stock had a mild setback last week but seemed to find support around $338, finding a bounce. The daily RSI reading is only in the mid-50’s and is still trending higher, while the hourly chart suggests the price can continue to rise.
Biotech stocks continue to perform well, and the Nasdaq Biotech ETF ($IBB) continues to be on a path to $122, and potentially even higher.
The S&P 500 reach our target of 2850 nearly two months early than expected, and the RSI reading is well over 80. The best case scenario is that the market just consolidates sideways for a week or two now, helping that RSI to come down. Otherwise, we could be looking at pull back, to get this 2,800, which is no big deal.
Gold just had a major breakout and could be on its way to $1600, and it has the weak dollar to thank!
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Michael Kramer and the clients of Mott Capital own shares of NFLX, TSLA
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.
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Tags: #intel #micron #tesla #gold #biotech #stocks #sp500 #netflix #roku