Flows and fundamentals weak
The stock lost $75bn yesterday on disappointing sales guidance
Fundamentals (growth slowdown) and market flows (-40% in 12w) remain questionable
Technicals compelling
The stock currently looks oversold on most time frames
It closed yesterday at $142.19, resting on strong resistance at $140:
- SMA 50 on the monthly chart (140.33)
- SMA 200 on the weekly chart (141.82)
- 62% Fib retracement from top of uptrend initiated in July 2016
Fast trade with tight stops
Started buying the dips yesterday betting on rebound
This trade requires caution as the consolidation may not be over
Technicals have not turned yet and a visible “Death Cross” is still at play
Strategy
Buy at $145
Stop-loss = 140
Target = 147 then 160
RR = 3 at the higher target
The stock lost $75bn yesterday on disappointing sales guidance
Fundamentals (growth slowdown) and market flows (-40% in 12w) remain questionable
Technicals compelling
The stock currently looks oversold on most time frames
It closed yesterday at $142.19, resting on strong resistance at $140:
- SMA 50 on the monthly chart (140.33)
- SMA 200 on the weekly chart (141.82)
- 62% Fib retracement from top of uptrend initiated in July 2016
Fast trade with tight stops
Started buying the dips yesterday betting on rebound
This trade requires caution as the consolidation may not be over
Technicals have not turned yet and a visible “Death Cross” is still at play
Strategy
Buy at $145
Stop-loss = 140
Target = 147 then 160
RR = 3 at the higher target
