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Tech To Be Tested This Week: SNOW DT ENTG SMAR


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CMT, Chartered Market Technician

Nasdaq Puzzlement?

  • Often we will mention that the best breakouts tend to work right away. That goes not only for individual stocks but any tradeable instruments. Here we look at the Nasdaq, and it broke above a cup with handle just above the very round 14000 number. This is now the third time it has broken through the lofty level since 2/9. The tech-rich benchmark must be given the benefit of the doubt as it rests just 1% from its all-time highs here. Bulls want to see some distance put between itself and the breakout pivot, not fall apart abruptly. Tuesday the Nasdaq registered a bearish dark cloud cover, and although the majority of breakouts will be retested for their validity, so soon afterward is a bit of a red flag. A big say will be had by its largest components with both AAPL and MSFT bull flagging here, and AMZN which continues to feel uncomfortable CLOSING above the round 3400 number. Of course, each of these names REPORTS earnings this week, with yesterday afternoon MSFT released numbers. The markets do their best to confound the most and be rest assured they will do so this week as well.

Snow Falling:

  • In the Northeast, we can get a late April snowfall, but that precipitation looks done for 2021. Will the chart of SNOW stop falling? Its 50 day SMA as seen below has put up a strong rebuttal for all of 2021, with the exception of a handful of sessions. The stock is pushing right up against that line one more time. On 3/25 it recorded a bullish piercing line right above the very round 200 number, basically a double bottom from where the stock came public. I still remember all the hoopla that it garnered that day it started trading back in mid-September last year. On its first day of trading it was unable to CLOSE above the very round 300 number, and now trades 44% off highs made back on 12/8, when it reversed hard to CLOSE below the very round 400 number. The WEEKLY chart looks encouraging with the last 7 weeks recording mostly spinning top candles which are adept are anticipating a change in the prevailing trend. PRICE however has to prove itself, and that would be done with a few consecutive CLOSES above the 50 day SMA. Is the icy resistance there about to start melting?

Recent Examples:

  • The world is awaiting the reopening, and some plays are right in the sweet spot. Airlines are continuing to behave themselves, the cruise line operators are smartly digesting prior gains. WGO CWH and PII show consumers appetite for the outdoors, as well as BC JOUT and HZO. Another name that could be thrown into that conversation is that chart below of EB, and how it appeared in our 4/22 Technology Note. Round number theory came into play here at the very round 20 figure. Notice how in January the stock attempted to rid itself of teenager status to no avail. That level now looks like good support, or at least one has a good area to play against to know that they are wrong. Tuesday ended a 4 session winning streak, but it still CLOSED above its rising 50 day SMA. If it can maintain altitude above the important line be ready to add to your stake through the 24.76 double bottom pivot. 

Special Situations:

  • Software new issue not one-year-old yet up 27% YTD and 90% over last one year period.
  • Now just 4% from most recent 52 week highs, and this week higher by 3.1%, after prior 3 all CLOSED very taut, within just 0.26 of each other. We know breaks from this type of action can be powerful.
  • Earnings mixed with gains of 13.9 and 2.9% on 2/3 and 7/29/20 and losses of 11.5 and 3.3% on 10/28 and 5/12/20.
  • Enter with buy stop above cup base pivot.
  • Entry DT 56.87.  Stop 53 (REPORTS 5/12 before open).
  • Semi play higher by 20% YTD and 121% over last one-year period. Dividend yield of .3%.
  • Now down 9% from most recent all-time highs. Back to back losing weeks for just third time in last 6 months. Immediately prior was 5-week winning streak that rose by a combined 20%.
  • Earnings mostly lower with losses of 3.8, 1.6, and 1.2% on 2/2, 10/22, and 4/23/20 (rose 11.2% on 7/23/20).
  • Enter on initial touch of rising 50 day SMA after recent breakout.
  • Entry ENTG here.  Stop 108.
  • Software name lower by 10% YTD and up just 18% over last one year period.
  • Up 4 of last 7 weeks and last week fell 4.9% after prior 3 weeks all CLOSED very taut within just .56 of each other. Round 60 number may be support on WEEKLY now, after huge resistance there with 20% reversals weeks ending 6/5 and 9/4/20.
  • Earnings mostly lower with losses of 4, 15.7, and 23% on 3/17, 9/3, and 6/4/20 (rose 11% on 12/8/20).
  • Enter on pullback into round number.
  • Entry SMAR 62.  Stop 58.

Entry summaries:

Buy stop above cup base pivot DT 56.87.  Stop 53.

Buy after initial touch of rising 50 day SMA following breakout ENTG here.  Stop 108.

Buy pullback into round number SMAR 62.  Stop 58.

Originally Posted on April 27, 2021 – Tech To Be Tested This Week Buy SNOW DT ENTG SMAR

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