Here are some of my bearish ideas for US equities that Trading2day subscribers see through my SMS service where I send all my trades directly to their mobile phones.
FSLR (First Solar Inc.)
This stock is trading near its September 2014 highs and is showing similar bearish divergence signals as it did back then when price tumbled from 72$ to 39$.
My minimum target is the lower triangle boundary as shown in the weekly chart above. The target is around 46$ but I cannot rule out a break of the black trend line.
The short-term bullish channel is being challenged. Price remains above the Kumo (cloud) in the daily chart but a break below 66$-65$ I believe will bring in more sellers and push price lower. I believe that the entire move from last September lows is complete and the next move down has started. The big triangle pattern as shown in the 1st weekly chart above is not complete yet and one more leg down is missing.
BA (Boeing Co.)
With a rejection at the weekly Kumo (Ichimoku cloud) I like this price formation and expect more downside to follow specially if price breaks below 120$.
Even if the entire decline to the February lows completed the entire downward correction from it’s all time highs, then the upward move from February lows is expected to be retraced at towards 116$ where the 61.8% retracement of the rally is.
If however the above wave count is correct we should expect new lows over the coming months. The first obstacle for bears will be the Daily cloud support area between $115-122$. So while I initially liked the rejection that confirmed an at least short-term top in Boeing, bears will need to see a move below 115$ in order for the bearish scenario to come true.
AAPL (Apple Inc.)
With sales of the new smaller iPhone SE slower than expected and reaching only 0.1% and price at important resistance levels with bearish divergence signals by the stochastic oscillator, Apple provides a good risk reward for short positions.
In the weekly chart above we see the price testing the weekly Kumo and the weekly trend line resistance at the 113$ zone. With stochastic at overbought levels similar to when price was trading at 122$, I expect the price to get rejected and start a new downward move that will eventually break below the February and August lows.
The daily chart provides us with the bearish divergence signals I’ve been talking about, so bulls need to be very cautious and look closely at the 104$ support. If this level is broken we should get a confirmation of the bearish reversal in Apple’s stock price. The positive sign is that price has broken above the Kumo (cloud) in the daily chart BUT this does not mean that the up trend will continue indefinitely. At least a pull back to test cloud support is expected. So below 104$ we should wait and see how the market reacts at the support at $100.
Currently I’m short positioned in all three stocks. I’m trading with real money under real market conditions. No paper trading. All losses or profits are real and Trading2day subscribers get notified of all the orders I place in real time through sms. If you have any question regarding my services do not hesitate to send me an e-mail at firstname.lastname@example.org.
Thank you for taking the time to read my latest thoughts.