Wednesday, April 6, 2016

DERM: Dermira, Breakout Through Resistance


FLXN: Flexion Therapeutics, At Major Turning Point With 2 Resistance Lines


Amazon.com, Inc. (NASDAQ: AMZN)

Amazon.com, Inc. engages in the retail sale of consumer products in North America and internationally. It operates through the North America, International, and Amazon Web Services segments. The company sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through retail Websites, such as amazon.com, amazon.ca, amazon.com.mx, amazon.com.au, amazon.com.br, amazon.cn, amazon.fr, amazon.de, amazon.in, amazon.it, amazon.co.jp, amazon.nl, amazon.es, and amazon.co.uk. It also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo, as well as fire phones; and provides Kindle Direct Publishing, an online platform that allows independent authors and publishers to make their books available in the Kindle Store.
Take a look at the 1-year chart of Amazon (NASDAQ: AMZN) below with the added notations:
1-year chart of Amazon (NYSE: AMZN)
AMZN had been pure money up until its peak towards the end of December, but from there, the stock suffered is biggest pullback in quite some time. Then, as AMZN rallied back up in March, the stock ended up stalling at the same $580 (green) area that it hit as resistance back in July and October (red). Now that AMZN has broken above that $580 area, we’d expect it to act as support on any pullbacks.

The Tale of the Tape: AMZN has a key level to watch at $580. A long trade could be entered on a pullback down to that level, with a stop loss placed under it. A break of the $580 support should lead to lower prices.

Apple Inc. (NASDAQ: AAPL)

Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players to consumers, small and mid-sized businesses, education, and enterprise and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. The company sells and delivers digital content and applications through the iTunes Store, App Store, iBooks Store, Mac App Store, and Apple Music.
Take a look at the 1-year chart of Apple (NASDAQ: AAPL) below with my added notations:
AAPL tests the line
AAPL has been trending lower since its peak back in July. Over that time, the stock has formed an important trend line of resistance (red). Any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its importance. So, AAPL definitely seems to have an important trendline of resistance, which currently sits right around $110. A break above that line should mean higher prices, overall, for the stock.

The Tale of the Tape: AAPL is currently stuck under a down trending resistance. A break above that resistance should mean higher prices for the stock, thus a long trade could be made. Short traders might look to enter a trade at the resistance.