WDC
Stop loss: 51.30 (Low risk)
Price target: 58.00
Second PT: 60.00
Analysis done on two hour candles. Western Digital used to be a giant in the electronic technology world, but has lost a large amount of its market cap over the years due to rising competition and large companies manufacturing their own hardware. Investors had given up on this company until their last quarter earnings surpassed expectations and their most recently formed alliance with Microsoft. WDC primary focuses on manufacturing memory chips and their most well known partner is Samsung, who recently extended their buying contract with them. In terms of their chart, their last decade of movement hasn’t had a steady bullish direction so there’s still a level of risk in the long run, but the short term picture may be a perfect set up for a swing/position style trade. The stock had a strong finish to conclude the year, especially Thursday where it ran over 10% while most other stocks were sluggish. Considering the stock had a strong move already, our preliminary entry is on an expected pull back to the indicated price. We’ll adjust entry if things develop differently.
NKE
Stop loss: N/A (Position trade)
Price target: 147.00-148.00
Analysis done on 30 minute candles. Not much of an explanation needed for this shoe giant in terms of background and legitimacy. Nike continues to dominate the sports and leisure shoe world along with their fitness gear and their last earnings report was just another piece of proof for that dominance. The companies last earnings led to a massive gap up and since then, they’ve been filling the gap back down. Filling a gap back down is not a bad things for company, think of it more of a “correction” to the price back into a healthier range from the sudden upside move. Considering the stock is back at the 10/20 day moving averages, it’s giving us a bargained entry for a position trade. There’s not stop loss provided on this set up, but if you must use one then consider a stop loss just below 140.00.
MGM
Stop loss: 29.90
Price target: 34.00
Analysis done on hourly candles. Gambling stocks are at an all time high in interest thanks for Barstool’s Dave Portney and his continuous encouragement for these stocks’ potential. While MGM in specific wasn’t mentioned, they still should be considered as a strong runner in the online gambling and sports betting phenomena our world is seeing. MGM Resorts most recent announcement of their newly unveiled sports betting app in Pennsylvania was just the tip of the ice burg for what could be a long running and profitable move. As sports betting becomes vastly adopted, well developed companies like MGM have less work to do than the ones barely starting up. In terms of their chart’s position, MGM has finally fully recovered from the March lows and are still displaying bullish momentum as they approach the 32.00 resistance. Our main focus this week and in the next few is watching the stock for a breakout above that 32.00 resistance for a run to 34.00+.