Tesla Showing Signs of Strength
Tesla shares are showing some significant signs of improvement on a technical basis. Tesla’s has held up relatively well around the $300 level over the past couple of days, and that should be viewed as encouraging for the bulls. Additionally, Tesla’s chart below shows volume has been declining, which also suggest the massive amounts of turnover we saw immediately after the quarterly results are settling down as well.
The chart could point to a stock that rises over the near-term as well, with a gap that needs to be filled around the $325 region.
Biotech shares have continued to struggle, but signs are emerging that a bottom could be near. The chart shows that the IBB ETF has found some support around the $309 level, thus far.
When taking a closer look at some of the significant components, we can see shares of Biogen continue to hold the $308 level.
Meanwhile, shares of Amgen are also attempting to put in a bottom and appear to be moving towards the stocks longer-term uptrend.
With Gilead trying to do the same.
Overall these three stocks have a tremendous amount of importance for the sector and the ETF, so where they go, the rest will follow. If they are bottoming or close to bottoming it could suggest a much-needed rebound is on the way.
Two Week Free Trial Period
Also, remember to sign up for our SA Market Place Premium Content in “Reading The Markets”
Premium Content: Benefits include the ability to reach out to Mike with questions through a chat room, direct message, or comments.
We will respond to questions in short order and will respond to questions with full-post or video segment, just not one or two-word answers.
Just $40 per Month
Consumer Discretionary Stocks
The consumer discretionary ETF XLY Is sitting at a significant resistance level at the moment. Should the price for the discretionary ETF be able to rise above the $92.75 level, it would suggest a breakout. Given the trend, a breakout seems likely, one that is undoubtedly worth watching and waiting to develop.
Amazon is the most critical component in the discretionary ETF XLY with nearly 17.25 percent weighting, where Amazon goes the rest of the sector follows. The chart of Amazon, concerns me a great deal though, with that huge gap in the chart from its earnings results date, a period of sideways consolidation would be welcomed.
Financials have been getting hammered of late, with the XLF fall from roughly $26.80 to $26 over the past few days. Overall the ETF has room to fall to nearly $25.50.
Free Articles Written By Mike:
Biotech Celgene Could Rebound By More Than 15%
Michael Kramer and the clients of Mott Capital own shares of 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.
© 2017 Mott Capital Management, LLC. Use, publication or reproduction in any media prohibited without the permission of the copyright holder.[/vc_column_text][/vc_column][/vc_row]