To The Moon

Hi everyone! I’m back again - here’s some stocks I’ve been looking at:

(1) Alphabet Inc Class C (NASDAQ: GOOG)

GOOG has been trading in an ascending channel for the past few months, and has been slowly pushing towards its ATHs at 152.10. However, bearish divergence has been forming on the daily chart, as evidenced by the 3 higher lows formed. I now expect the stock to make a push towards the daily 100MA at around 129, followed by the 38.2% Fib retracement at 128. Ultimately, I expect us to break below this ascending channel to retest the breakout of the bullish descending channel consolidation at the 61.8% Fib retracement at 119.12. This is likely to align with the rising daily 200MA, which is currently at 114.99.

In the meantime, we would also fill several gaps on GOOG, namely the 3 bull gaps at 123.69-127, 121.30-121.38, and 118.22-118.68 respectively.

Following this period of consolidation, I still think GOOG will make a run to make new ATHs. However, for now, we must not fight the tape.

If we look at the bigger picture, the weekly is also suggesting a reversal is coming:

We can see a mild bearish divergence forming, and I expect us to test the weekly 20MA sitting at around 129, which also aligns with the aforementioned 38.2% Fib retracement.

Sentiment: SELL

Bearish PT: 133.50 → 128 → 117.78 to 119.12

Bullish PT: 142.38 (and higher)

(2) Microsoft (NASDAQ: MSFT)

MSFT is trading in a larger bull flag consolidation pattern. In the past few trading sessions, we have been struggling to get over the 23.6% Fib retracement level at 331.99, which is suggestive of a support/resistance flip. RSI is also curling over, and we can see the lower highs and lower lows being respected on RSI.

The next swing target I am looking at would be the 38.2% Fib retracement, at 310.46, which has acted as a bounce zone in the past, followed by the daily 200MA at around 300. What I am really looking for is a tap of the lower trendline of the bull flag, which would give me a strong entry point for the swing move up. Until then, or until we break above the RSI resistance trendline, the risk-to-reward is better for shorts/puts rather than longs/calls.

If we look at the bull flag on the weekly, interestingly enough, it does suggest there is further downside coming, as shown below:

A measured move to the 50% Fib retracement at 293.07 could ultimately materialise before a move higher. Note that the weekly 50MA is also situated around there, and this could merely be a backtest of the breakout above the 50MA. I’ll be a lot more bullish if we successful base and hold at that level.

Sentiment: SELL

Bearish PT: 310.46 → 293.07

Bullish PT: 331.99 → 340.86 → 366.78 (or higher)

(3) Apple (NASDAQ: AAPL)

AAPL has been consolidating in a bullish descending channel ever since it made ATH at 198.23 in July this year.

Recently, AAPL met a confluence of resistance between 180.75 and 182.38, as well as the daily 100MA, of which the latter is now curling down and turning into resistance. The RSI is also respecting a similar lower high downtrend, with the RSI resistance trendline drawn in red. Similar to GOOG and MSFT, I am expecting AAPL to tap the daily 200MA at around 168, bounce and then eventually head lower to test the 50% Fib retracement sitting at 161.20. From there, I expect AAPL to form a bullish divergence and base much higher, with a target above ATHs.

The weekly also supports this move down, based on how we closed last week:

I am expecting AAPL to reverse from here and find support between the weekly 50MA and 100MA, where it should make a local bottom and bounce substantially.

Sentiment: SELL

Bearish PT: 169.94 → 161.20

Bullish PT: 180.75 to 182.38 → 198.23

This is probably the first time my post has only covered Big Tech stocks… however, they are highly indicative of market direction. Thus, do pay attention to these names! Have a great week ahead!

@TigerWire @TigerStars @TigerEvents @CaptainTiger @MillionaireTiger

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