Global stocks: Short-term trading possibilities

Published October 17, 2018

It was a good trading day Tuesday with Dow Jones industrial Average gaining over 2 per cent. The index rose above its near-term resistance of 25400 to close at 25798.00 points. Same with the S&P 500 index that closed at 2809.92 levels, gaining 59.13 points.

As the market goes up and down, we found some short term trading opportunities. We have selected stocks that have a volatility percentage of close to 11 or lower and liquidity of over 200 million dollars on a monthly basis.

Starbucks Corp (SBUX.US) Close: 57.81

Starbucks Corporation is inside a rising trend channel in the short term. After a minor correction and taking a support around 54.80 dollars, the stock rose again and this time above its resistance of 57.40 levels. This may be a good short term opportunity.
The next resistance is 3 % higher than last close, that is at 59.60 in the medium term graph.
Stop loss - if the price closes below 54.80 in the medium term and 53.80 in the short term.
The stock has a monthly average volatility of 7.47 per cent and has a turnover of over 650 million USD.
Starbucks Corporation is estimated to report earnings on 11/01/2018.
Investtech's outlook (one to six weeks): Positive

Newmont Mining Corp (NEM.US) Close: 32.29

Newmont Mining Corp has broken up from a falling trend channel. The stock is now trading above its resistance of 31.60 dollars and has given a buy signal from a double bottom formation in the short term. Further rise in price is indicated.
Target from the price formation is 33.50 dollars. But next resistance is around 37 dollars, 14 per cent higher than last close. Support is between 31.60 and 29.70. This overall gives a favourable risk reward ratio both in the short and medium term.
Newmont Mining has a monthly average volatility of 8.9 percent and turnover of around 200 million dollars.
Newmont Mining Corporation is expected to report earnings on 10/25/2018.
Investtech's outlook (one to six weeks): Positive

CVS Corp (CVS.US) Close: 73.72


The healthcare company CVS Corporation has recently broken down from a rising trend channel and has given a sell signal from a double top formation. The stock price also broke below its earlier support of 74.70 dollars. This level should now act as a short term resistance.
Next level of support is nowhere near before 68.70 dollars or equivalent to 6.8 % lower than its last closing price. Hence a good risk-reward ratio.
The volume balance indicator is very negative which indicates that prices have fallen on high volume but react upwards on a low volume. This supports the sinking price. The stock is overall assessed as technically negative for the short term.
CVS Corporation has a monthly average volatility of 11.09 percent and has a turnover of over 600 million USD.
As per info on Nasdaq, CVS Health Corporation is expected to report earnings on 11/06/2018 before market open.
Investtech's outlook (one to six weeks): Negative

 

Along with the short term chart, it is always adviced to consult a higher time frame chart for a better and wider perspective of the stock.

 

Note: These instruments are traded in currency based on the exchange or country they are listed on.

The analyses are based on closing price as per October 16, 2018.

Skrevet af

Kiran R. Shroff
Analytiker
i Investtech

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Investeringsanbefalinge(r)n(e) er udarbejdet af Investtech.com AS ("Investtech"). Investtech garanterer ikke for fuldstændigheden eller rigtigheden af analysen. Eventuel eksponering i forhold til de råd / signaler, som fremkommer i analyserne, står helt og holdent for investors regning og risiko. Investtech er hverken direkte eller indirekte ansvarlig for tab, der opstår som følge af brug af Investtechs analyser. Oplysninger om eventuelle interessekonflikter vil altid fremgå af investeringsanbefalingen. Yderligere information om Investtechs analyser findes på infosiden.


Investeringsanbefalinge(r)n(e) er udarbejdet af Investtech.com AS ("Investtech"). Investtech garanterer ikke for fuldstændigheden eller rigtigheden af analysen. Eventuel eksponering i forhold til de råd / signaler, som fremkommer i analyserne, står helt og holdent for investors regning og risiko. Investtech er hverken direkte eller indirekte ansvarlig for tab, der opstår som følge af brug af Investtechs analyser. Oplysninger om eventuelle interessekonflikter vil altid fremgå af investeringsanbefalingen. Yderligere information om Investtechs analyser findes på infosiden.

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