I’m keeping tabs on the charts of Tesla and Amazon ahead of their earnings reports this week, plus a neat descending channel on NZD/CHF.
Will we see trend continuation or breakouts this time?
Here’s what’s up!
Tesla (TSLA): Daily
It looks like this stock is gearing up for a big breakout soon!
Tesla (TSLA) will be printing its quarterly earnings report early on, and this would likely set the mood for investors for the rest of the week.
Price is stuck inside a long-term and short-term descending triangle pattern, and the key level to watch for a break higher is $670. Technical indicators are giving mixed signals, though.
Stochastic is heading south, so price could follow suit while bearish pressure is present.
The 100 SMA is above the 200 SMA to signal that an upside break is likely, but the gap between the two has narrowed enough to hint at a bearish crossover. A move below the $640 mark could send TSLA back to the triangle bottom.
Amazon (AMZN): Daily
Is the space cowboy’s wealth about to skyrocket once more?
Amazon shares already bounced off the area of interest or former resistance-turned-support at $3,500. Just how high can it go from here?
The Fibonacci extension tool shows the potential bullish targets should the earnings report print good results.
The 38.2% extension is near the resistance at the swing high while the 50% level lines up with the $3,800 mark. Stronger bullish momentum could even take it up to the full extension close to the $4,000 handle!
Technical indicators confirm all systems go for takeoff, as the 100 SMA is increasing its lead over the 200 SMA while Stochastic is also heading up.
NZD/CHF: 4-hour
Anyone up for a simple trend setup?
NZD/CHF has been cruising lower inside a falling channel visible on its longer-term time frames, and it seems to be setting its sights on the resistance once more.
This happens to coincide with the .6450 minor psychological mark where Kiwi bears might be hanging out. If that’s the case, the pair could slump back to the channel bottom near the .6300 handle.
Stochastic is already indicating exhaustion among buyers while the moving averages confirm that bearish momentum is in play.
