Chart Patterns to Watch This Week 4-16-2020 -- with David Moadel
if you buy junk then don't be surprised if your results are junky hey this is
David Modell looking at the markets going to show you the charts that I'll
be looking at over the next week and I want to thank each and every one
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right jnk the one of the junk bond ETFs this
ETF I warned you about last week a lot of people were saying it's going to go
up up and away because the Federal Reserve of the United States indicated
that it wants to buy well this one and hyg which is another junk bond etf lqd
things like that and I mean the name of this is J&K so they're almost
practically telling you that it's junk and so it gapped up because of the
Federal Reserve announcement and I warned people don't do it I don't
recommend it and it's already going down okay so the lesson the moral of the
story is don't buy junk even if the Federal Reserve is buying it I want you
to buy quality stuff alright don't buy something just because somebody else is
that's not a real plan for your trading or investing okay
so what is higher quality well Bank of America we're talking about a huge Bank
here and it's at an OK price I want to see it go down more notice that Bank of
America BAC bounced right off at 18 not that long ago I want to see it get back
there if it gets anywhere near 18 it is probably at least in my opinion worth
buying but I just told you not to buy something because somebody else likes it
okay I want you to do your own research make your own decisions if it gets to 20
that's okay if it gets to 18 that's even better I'll be watching out for that
let's take a look at neo I haven't talked about neo I think in a little
while so do I like it at this price well I like the dub
bottom here that W shape over there what I like even better is the fact that it's
creating a nice channel here and it's an upward channel probably my favorite kind
of channel better than downward channels right although you can play downward
channels as well or even sideways ones I like the way it's holding this channel
this resistance line has one two three four data points now bounced off of it
four times and that's a pretty decent amount of conformation for this this
support level here all right right now the support level is at 250 so
I'd like to see it closer to that but 325 is not bad for neo I was talking
about it with a bullish perspective when it was in the twos now it's still pretty
pretty decent again that upward channel really makes me feel good about it I'm
gonna wait until it pulls back to that lower line though wherever it is when it
gets there okay USO want to talk about oil I think oil
is a good price I think oil generally will only go down
so far at least for now maybe someday electric vehicles will be you know the
big thing that everybody's doing it's certainly an emerging industry electric
vehicles and it's it's good to be excited about that that's fine it's okay
but I don't think oil use is going to go away this year or next year okay and
it's hard to see but the candle printed on Thursday is a teeny little hammer and
that is encouraging at the bottom of a downtrend when it has a lower wick small
body and not much of an upper wick and also it's been down to this level before
it came down to almost exactly $4 USO printed a hammer candle a small one and
then shot up from $4 to $6 that is a 50% gain in literally a few days can it
happen again I don't know but I like it at this at this level
Netflix here's the opposite all right what kind of trader are you what kind of
investor are you do you look at this and say hey it's got momentum it's got
rocket fuel and so I'm going to buy it up here at this loud
or are you more of a value kind of trader or investor I tend more towards
the value I can use momentum as well I see both perspectives but notice that
the candles the green candles are getting smaller and smaller and smaller
okay look at the bodies of these candles big medium smaller and tiny body on this
one big wicks but the wicks are really head fakes during the day aren't they
okay and had faked up came back down head fake down came back up the wicks
really are less indicative compared to the body so still a three percent up
move but not much compared to the previous day's I see this as a stock
running out of rocket fuel not having rocket fuel I see this as
potential exhaustion and I'm not gonna buy up here could it keep going yeah
well I feel silly if it keeps going no I just made a decision not to buy it
that's all I'd rather buy low and sell high if I have a choice and the market
will always give you opportunities to buy at better prices alright so there
you go that that's how I look at it AT&T I take her simple tea I like this one I
like it at around thirty sure I liked it better at twenty five look at the wick
on this candle bounced right off of 25 the volume is dwindling I'm not a huge
fan of that so there's not much conviction but there's not much price
movement either it's been holding 30 though that's what I like the most all
right it's kind of a sloppy double bottom here it's somewhat invalidated
now that's gone sideways for a week I just like the fact that's holding 30
with a hammer candle by the way okay lower wick no upper wick small body that
could be a spring board right there or at least it's holding 30 that's what
I'm looking at mainly so that's encouraging it's a huge company it's
AT&T it's not junk GE an old company respected company had some tough times
though last year especially was not easy for General Electric so I know it looks
like upwards price action but the the first part of that year and then this
year was a real dump but then the whole market dumped so I'm
not going to blame GE for that it's coming down to a support level here
$6.00 is definitely support no guarantees could crash right through it
but it you know it's gone down to a level where it's been before and it's
just a really good price it hasn't been you know I hear it was six dollars and
it hadn't been six dollars for a long time it's a nice price I like it but
then I think differently than most people don't I UEC uranium Energy Corp
for their a number of ways to play uranium if you believe that the world is
not going to run out of the knee is not going to stop needing uranium
so the Cameco is one way to play it that's CCJ ura which is a uranium ETF if
you just want to buy the ETF here's another one you see uranium Energy Corp
now I'm not a huge fan of buying in downward channels as much I like
sideways or upward channels but it broke through it on the other hand it broke
through it before it didn't it and then came right back down really hard so
there's no guarantee here this is something you would buy if you just have
a long-term perspective on it if you're just going to buy it at seventy seven
cents and don't look at it for a while and you know hope that it goes back up
to let's say a dollar 40 take profits there that would be almost doubling your
money so not unreasonable yes you've got the you know the issues going on in the
world and you know people are still falling ill does that mean that we're
going to run out of the need for uranium though I don't think so I think at some
point this could be a really good rebound all right and it could be
powerful but you don't have to play it with this stock I'm just picking this
this week because it's it's such a cheap stock I think most people can afford a
$0.77 stock so that's a long-term perspective type of thing and copper
look at the size of this megaphone pattern I mean it's just huge the price
action is getting wider and wider and wider I like the fact that's closer to
the bottom of the megaphone than the top it's kind of like playing a
channel except it's just getting bigger and bigger so I like JJC that's the
that's a copper it's a neat Iain rather than an ETF but
it is a copper fund and 3550 exactly for this one it's pretty good price I'm not
against it I'm actually for it if you want to invest in copper there's one way
to do it was it better at 32 bounced right off at 32 but hey if you want to
wait for 32 again it might get there it might not there'll be a nice price if
you want to buy here yeah I'm not against it perhaps take profits at 44
that would be a pretty decent profit if you bought here and if it gets up there
in the long term alright so thanks everybody
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