Upside potential in these stocks

24th Oct '18 by Kiran Shroff

5 comments 2489 reads

US markets had a slightly rough day yesterday, with DJIA, S&P500 and Nasdaq all down between the range of 0.4 and 0.55 per cent. On the other hand, a few stocks are holding on with a strong grip and would not let go, while some are gearing up to rise. Overall they seem to be stronger than the rest of the market.

Philip Morris International Inc. , Close: 88.50

Philip Morris International Inc. reported its Q3 numbers on 18/10/2018.
The stock has broken out of the falling trend in the medium term, which indicates a slower falling rate in the beginning.

A buy signal is initiated by the means of a positive break out from a double bottom formation and through the resistance around 87.00 dollars, both in the medium and long term charts. A trend change may be expected here and further rise to 97.00 dollars or more is signaled.

Recently volume has been higher with the rising prices and lower with price corrections. This is a positive sign. Additionally, the momentum indicator RSI is rising and trying to catch up with the rising price. Another sign of strength.
Next resistance is at 103.00 or 16 % higher than yesterday's close, while support is between 87.00 and 82.00 dollars.

The stock is overall assessed as technically positive for the medium to long term.
Investtech's outlook (one to six weeks): Positive

Pacific Gas & Electric Co., Close: 47.29

Pacific Gas & Electric Co. shows strong development within a rising trend channel in the medium term. This signals increasing optimism among investors. The stock has given a buy signal from a double bottom formation as the price broke up through resistance at 46.80 both in the medium and long term. Further rise to 54.56 or more is signaled.

Upside potential in the stock is big as the next level of resistance is around 60.00 dollars (or about 29 %) and 69.00 dollars which is equivalent to 47 % higher from last close.

The stock is currently testing support at dollar 47.00. This could give a positive reaction if buyers decide to jump into the stock and give it a positive energy.
There is support around 45.00 which can be used as a potential stop loss. A close below this level may lead…

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Howard Adams

24th Oct '18

Hi Kiran

NIce graphing. I'm not yet into that technique but am beginning to appreciate it a bit more. It's useful to see examples like these.

Thanks
Howard

aflash

27th Oct '18

Kiran,

Thank-you for the suggestions. Keep them coming.
Although I am not going to post my own graphs all three ideas have been closely examined.
None has led to a purchase.
The most obvious problem is PCG (Pacific Gas & Electric). There is a wedge forming. The Highs cannot get through the resistance at 48,80$. It will be hard work to fill the gap to 52$. Even the tramline of Higher Lows has been breached today.
PM (Philip Morris) also gapped down in April and people will be selling whenever the price gets close to 96.
VZ (Verizon) 's move is over. Too late.

Kiran Shroff

31st Oct '18

Hey,

Thank you for your observations. Good input on your side.

Lets take it one by one.
Philip Morris Internat (PM) - Close: 90.47 (+0.01), Oct 30, 2018,
Not a bad move from 88.50. The gap that you mentioned is 8.5% from 88.50. Target from Double bottom comes to 97. Not a bad idea to get out around 96.

Pacific Gas & Electric (PCG) - Close: 46.93 (+0.15), Oct 30, 2018
The formation is still valid unless 39 level is broken. So we can wait for that, if that happens in coming weeks. You never know about the investors, some may not care for gaps if they really wanna buy.

Verizon Communications (VZ) - Close: 58.18 (+1.70), Oct 30, 2018
No formation ever say, neither in theory or practical, that the stock cannot move beyond its target. It has just broken from its Long-term sideways trend. Who knows if it keeps running!

Have a great trading day!

gus 1065

1st Nov '18

Hi Kiran.

Thanks for this and previous posts which I’ve enjoyed reading.

Not sure if it’s in the remit of the work that you’re doing, but I think the majority of the Stocko community are predominantly U.K. based and/or do most of their investing in London listed stocks. While it’s good to get some colour on other markets, especially the US which invariably tends to be the dog that wags the U.K. tail, I think you would reach out to a wider audience if you felt comfortable covering the U.K. market with some of your commentary.

Gus.

Hi Gus,

Thank you for your suggestion.

Would keep that in mind while writing my next article.

Kiran

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Kiran Shroff

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