Netflix Inc. (NFLX) is making headlines these days for Squid Games and a controversial Dave Chappelle special and the stock is flying, breaking out above tough resistance between 550 and 600. However, there’s considerable risk for shareholders when it steps to the earnings plate on Tuesday because subscriber growth has slowed in recent quarters, especially in the US market. Traders could punish the stock after the report if Q3 metrics continue to lag optimistic projections.
International Business Machines Corp. (IBM) has underperformed other tech stocks longer than most Millennials have been trading the financial markets, topping out all the way back in 2013. However, a fourth quarter spin-off of legacy operations is attracting widespread investor interest, lifting the laggard back to an 8-year trendline in the 140s. The old school behemoth’s report on Wednesday could be the catalyst that finally breaks the downtrend, opening the door to much higher prices.
Tesla Inc. (TSLA) has made steady progress since bouncing at the 50-week moving average in May and is now trading just 51 points under January’s all-time high at 900.40. It will have an opportunity to close the distance when it reports earnings after Wednesday’s close but cautious comments about China or supply constraints could prompt investors to have second thoughts. Wall Street analysts aren’t helping the bulls, with a consensus ‘Hold’ rating and median price target more than 70 points below Friday’s close.
Ethereum lifted into resistance at the .786 Fibonacci retracement level of the second quarter selloff last week, setting up a test at the 4,000 level. Bitcoin just sliced through its .786 retracement like butter, lifting above 60,000. However, Ethereum failed a breakout at this harmonic level in September, adding another layer of resistance. In turn, this suggests a two-sided strategy that buys a rally above 4,025 or sells short a decline through 3,800, whichever comes first.
US Natural Gas ETF (UNG) remains in a long-term downtrend, even though its nearly tripled in price since January 2021’s all-time low at 8.22. Three reverse splits since 2011 have sapped the life out of the long-term pattern, reducing the technical power of large percentage price moves. More importantly, the rally has just reached major resistance at the 200-week moving average at 23, significantly raising odds for profitable short sales in the fourth quarter.
For a look at this week’s economic events, check out our economic calendar.
Disclosure: the author held no positions in aforementioned securities at the time of publication.
This article was originally posted on FX Empire
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