Hi everyone, today I’ll look at one of the pandemic darlings: Zoom Video Communications, Inc. (NASDAQ: ZM) A look at the weekly chart shows that ZM is trading in a potential falling wedge reversal pattern, having declined from the pandemic highs of $500+. 2 weeks ago, the stock broke out of this pattern, and has spent the past week consolidating above this wedge, with substantial volume coming in above the breakout as it backtested the upper resistance trendline from above (resistance-to-support flip). More importantly, I note that bullish divergence that has been forming, which suggests that a reversal has been brewing for several months. I have nothing much to add for this setup. Even though the effects of the pandemic have largely subsided, there is still a place for ZM in the teleconfe

Hi everyone! I did some thorough charting for Apple (AAPL) the past few days, and I’m now ready to share my TA with you guys. Apple is a company that is virtually known by everybody, regardless of how old you are. Bears have been trying to short Apple as it is one of the last “giants” that is still holding strong. That being said, I think shorting it several months out is going to pay off in due course. Firstly, let’s take a look at AAPL’s daily chart: On the daily chart, you can see that the stock is trading in a wide descending channel (upper descending trendline, lower descending trendline). If you look closely, you can also see that the stock is trading in a secondary falling wedge pattern (the white diagonal line in the middle and the lower descending trendline). The slope of the R

Hi everyone! Today we’ll look at a stock that I’ve covered previously: Wayfair Inc. (NYSE: W) *This thesis differs from my previous newsletters on W. Consider this my most updated outlook on W for the coming months. The weekly chart of W shows a consolidation symmetrical triangle pattern with lower highs and higher lows. This is more pronounced and less speculative than the inverse head and shoulder pattern that I had looked at a few weeks ago. A small hidden bullish divergence is forming, which is indicative of an impulsive move higher. RSI is largely following the pattern as well with lower highs and higher lows. Note that volume is decreasing but buyers are steadily accumulating on the way down. On the daily chart, the hidden bullish divergence is a lot more pronounced. Notice the lopsi

Hi everyone! I’ll be looking at another semiconductor stock: Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) TSM is forming higher highs and higher lows. It recently made new ATHs above 145 but has since come back below this level. I have identified 141.99 as a key pivot to reclaim for the next leg to occur. This was where prior ATHs rejected, and also a recent rejection zone (rejected even during Friday’s session). However, hidden bullish divergence has started to form on the weekly, which is a good sign for bulls. It is also trading in an ascending broadening wedge expansion pattern, similar to other semiconductor stocks such as AMD and MRVL. On the daily chart, the expansion pattern is more visible. I note that it is forming a hidden bullish divergence on the daily as well.

Hi everyone. Today we’re going to be looking at a cybersecurity company: Cloudflare, Inc. (NYSE: NET) NET has been trading in a series of higher highs and higher lows since IPO. Following the 2021 high, NET has fallen back into its IPO support trendline (in purple). NET’s move higher from its IPO support trendline was led by a trend markup. However, the stock since broke below its trend (in dark green) and has since been supported by its secondary trendline (in light green). However, given that these are shorter-term trends, they can break provided we do not lose the “master” trend on NET (in purple). We can see that the key resistance now is the 116-122.13 area, which was strong resistance in 2022, and also a strong resistance in February this year after earnings. NET is currently basing

I am leaning BEARISH on $Exxon Mobil(XOM)$  at these levels.  The daily chart above shows that the stock is trading in a bearish rising wedge pattern on the daily. This pattern is characterised by higher highs and higher lows and rising trend lines that eventually converge, usually cumulating in a breakdown below the wedge. In the current bear market, we have seen rising wedges in the middle of downtrends on major ETFs such as $SPDR S&P 500 ETF Trust(SPY)$ . The stock has a neutral 14-day RSI of 51.98 (between 30 and 70) and is currently trading above the middle Bollinger Band.  So, how do we trade this? Based on how we have opened in pre-market with a gap do

The stock market rally that has taken retail bears by surprise is NOT over yet. Here's why I think that is the case: Consider SPY's daily chart. As you can see, since we made a short-term capitulation style bottom at 348, we have been trading in a rising wedge pattern that is reminiscent of previous bear markets. We have seen higher highs and higher lows in the pattern. It is interesting to note that since the start of this year, we have been trading in a secondary ascending channel within the broader wedge pattern. Bullish divergence has continued to form after Friday's trading session. While we made higher lows on the daily, the 14-day RSI indicator was making lower lows. This suggests that rally continuation is inbound.  By the end of this week, I am expecting the ma

*TA as of 28/2/24 Hi everyone! I’ll be updating my TA on a solar provider today: Sunrun Inc. (NASDAQ: RUN) RUN was previously trading in a falling wedge consolidation pattern (maroon trendlines) after putting in a blow off top. It subsequently broke out of this pattern after basing at COVID lows at the 7-8 area. Recently, we saw a breakout of the falling wedge that suggests a change in trend. RUN is currently trading in a shorter-term symmetrical triangle consolidation pattern that is making lower highs and higher lows. Hidden bullish divergence has been forming at lows, and the stock has retraced more than 61.8% of its move from 8.43 to 20.68. In the near-term, I can see a move towards the 15.04-15.21 gap. A breakout of the symmetrical triangle pattern should see a move towards 17.16, and

I am BULLISH on $SPDR S&P 500 ETF Trust(SPY)$ for now. Here's a look at its daily chart: The stock closed above its 5DMA, which is a level it lost after the November CPI print was released a few days ago. This suggests a near-term trend reversal is inbound. Furthermore, the ETF appears to be forming a double bottom "W" setup around the high 370s-low 380s level, which suggests that a retest of 400s might be coming in the coming days and weeks.  Moreover, the ETF is once again trading at the lower Bollinger Band, which suggests that at some point we will get a trend reversal to the middle BB (something like mean reversion).  To add to that, based on historical data, the final trading week of the year tends to bring a