To The Moon

Hi everyone! Here’s some stocks I have been looking at for the week.

(1) MercadoLibre (NASDAQ: MELI)

The stock broke down from its ascending channel. However, it found support at the 61.8% Fib retracement level at 1,142.86. The hidden bullish divergence on the daily timeframe continues to be valid, as we are likely forming a higher low here. So long as 1,142.86 holds, I continue to reiterate the next target to be the 1,550-1,601.92 bear gap (refer to Watchlist [13]) followed by the 23.6% Fib retracement at 1,685.04.

Sentiment: BUY

Bullish PT: 1,550 to 1,601.92 → 1,685.04

Bearish PT: 1,142.86 → 904.41

(2) Apple (NASDAQ: AAPL)

After several weeks, AAPL has finally tapped the 38.2% Fib retracement level at 169.94 and is extremely close to its daily 200MA. It is still consolidating in the descending channel formation that it commenced in August this year. For as long as we hold above 169.94 and form a higher low, it can break out of consolidation, with the next measured move back towards ATH at 198.23 (and higher). In the meantime, I am anticipating yet another retest of the 23.6% Fib retracement at 180.75. It’s possible we see a breakout of consolidation, and subsequently a backtest of the breakout before a measured move higher.

Sentiment: BUY

Bullish PT: 180.75 to 182.38 → 198.23

Bearish PT: 169.94 → 161.20

(3) Twilio (NYSE: TWLO)

TWLO has been an extremely hard read. It appears that we have broken down below the consolidation channel we were in. It is now possible for TWLO to retrace to the 78.6% Fib retracement at 50.63. If we fail to hold there, then a move to the longer-term black trendline is in order. What’s worth noting for the shorter-term is that TWLO is forming a bullish divergence and a possible bottoming candle here. What I will watch for now is a backtest of this consolidation channel and whether we will break over it. If we do, then it’s headed back to the 23.6% Fib retracement at 65.05.

Sentiment: HOLD

Bullish: (Refer to Fib Retracement Levels) → 80 → 96 → 130.09 → 176

Bearish: 50.63 → 45.02 (and lower)

(4) Shopify (NYSE: SHOP)

SHOP continues to consolidate in this large descending channel. Recently, it broke down from a small bear channel (in red), and is now backtesting the breakdown. To assume any long positions, it probably has to base between 46.19 (key level based on candles) and the 50% Fib retracement at 47.53 first before it can head higher. This could be suggestive of another leg down, since SHOP is usually a proxy for the wider market. For the stock to break out of consolidation, it now has to break above the 23.6% Fib retracement sitting at 60.15.

Based on the weekly chart, a break out above consolidation would see a measured move to the 200MA currently around 80 or so.

Sentiment: BUY

Bullish PT: 53.17 → 60.15 → 71.43 → Weekly 200MA (~ 80)

Bearish PT: 47.53 → 46.19 → 41.89 (and lower)

(5) S&P 500 ETF (ARCA: SPY)

I have not talked about SPY in a post for a while, but it has been consolidating in a descending channel for the past few months. What’s interesting to note is that a large hidden bullish divergence is forming, as well as a smaller regular bullish divergence. This is suggestive of an EOY rally which is supported by pre-election year seasonality.

Dow Jones Industrial Average Four-year Election Cycle ...

Source: EquityClock.com

Something else to note is that today’s low (so far) of 417.80 appears to be a significant level, as can be seen when I draw a horizonal line across. It sits near the daily 225MA as well, which tends to act as extended support/resistance. 417.80 has served as resistance during the bear market, and now is likely to serve as support. If this is indeed a flip of resistance into support, then it is likely we will base from here and break out of the consolidation channel. A break out would see a measured move towards ATHs at 479.98 and higher.

Note that a break below the daily 225MA (near weekly 50MA/100MA) would see a move to the 50% Fib retracement at 414.05, then to fill the bull gap at 407.27-408.64, which would coincide with a backtest of the weekly 75MA.

Sentiment: HOLD

Bullish PT: 429.61 → 448.86 → 479.98

Bearish PT: 417.80 → 414.05 → 407.27 to 408.64 (weekly 75MA backtest)

Ok, that’s it for now! Will do up another post when I’m free.

$SPDR S&P 500 ETF Trust(SPY)$ $MercadoLibre(MELI)$ $Apple(AAPL)$ $Shopify(SHOP)$ $Twilio(TWLO)$

@TigerStars @TigerEvents @CaptainTiger @MillionaireTiger @TigerWire