Here's this weeks' watch list. The stocks to watch are: CRM, ZIM, LMT, UPS, BRK.B, NEM, AJG, MNMD, IHRT, ANTM, X, AEO, IPOE, and COST. Good luck to all! Reminder: US markets are closed tomorrow (Monday).
Note: If any charts are too small to see, you can click on them to see the full image
1. Salesforce (CRM)
CRM broke out of this consolidation on increased volume (good earnings report) so it's one to watch. Below is the weekly time frame. Under that, is the daily.
In the daily timeframe you can see the earnings gap. Problem is, CRM closed near lows so it may take a breather and fill the gap or pull back before going higher.
2. ZIM Integrated Shipping (ZIM)
Went long last week at $44 but there's still a chance to get in if it pulls back for a bit before going higher. Thinking it can reach about at least $50 since its a nice round number. Not interested under $40. Volume patterns fairly strong.
Read: How to Use Volume Analysis in Stock Trading
3. Lockheed Martin (LMT)
Resitance around $391-395 area but it's consolidating nicely so we're looking for a breakout to target $391 area.
4. United Parcel Service (UPS)
Seems to be curling higher to make a new swing high. Stop losses could be under $211 or $209. Expecting that a new swing high could hit $225 or higher.
5. Berkshire Hathaway (BRK.B)
Willing to buy BRK.B around $285 for a target of around $300, anticipating a break out.
6. Newmont Corp. (NEM)
Clean bullish consolidation on the daily chart. More info below.
Here's a 65-minute time frame of the same NEM chart to get a closer look. Short-term support at 72.75 and resistance at 73.75. Want to see a higher low or a break of $73.75 on the daily to go long. 55 cent dividend is coming up June 2nd, so adjust the prices for that after.
7. Arthur J. Gallagher & Co. (AJG)
Nice bounce off the 20 EMA . Looks good for a long here, expecting new highs or a retest. Stop loss under the May 13th swing low. Lots of volume came in on the bounce 2 weeks ago (bullish sign).
8. Mind Medicine (MNMD)
MNMD looks like it has big upside potential if it breaks out on volume. So far, volume patterns are strong. Stop loss under $3 ish if we take a position.
9. iHeart Media (IHRT)
Still watching IHRT for the past 2 months. Everything is still in tact, trend is higher, volume is bullish but fading a bit. Targeting $25 at least.
10. Anthem Inc. (ANTM)
ANTM bull pennant can make a new swing high to $420 area as long as the 20 EMA still holds support.
Potential Short Squeezes
Some thoughts on meme stocks:
Last week, we put a GME chart in our watch list because we had the idea that money coming out of crypto would go back into meme stocks. Well, that happened. Now, it's harder to say if that will continue, but for the most part it seems like the popular meme stocks like GME and AMC need a breather because Friday had blowoff top type of candles (especially AMC). People may look for other short squeezes instead.
Below, are 3 stocks that we think can squeeze a bit. If you want to learn more about predicting short squeezes, check out this article here.
11. United States Steel (X)
14.36% live short interest as a % of float according to Ortex. That's enough short interest for a decent 10-20% move. This was on last weeks' watch list for a bounce off the 50 MA and targeting new highs. Plan is still the same.
12. American Eagle Outfitters (AEO)
12.16% live short interest for AEO. Would be interested in a long entry if it gets near the 50 SMA and holds. Nothing for now it's in the middle of a range but keeping an eye on it.
13. Social Capital Holdings (IPOE)
Volume base building at current prices and not much volume above until $22.60. Currently holding support as well. This tells us that IPOE has potential to launch to about $22.60 level or at least back to the wick from last week at $21.80.
14. Costco (COST)
COST breaking down after its earnings report last week, plus it had trouble making a new high and got stuck at the Dec 2020 highs. A close under the most recent swing low ($376) would be needed to start a downtrend but not looking good for now. Invalidated if it makes a new high.
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