CBI, IMAX, M & TEVA

Let’s peek at the charts for 4 random companies. These 4 companies were requested by a Trendy Stock Charts member several months back. The member requested a review of the charts for what he called “4 stinkers”. My outlooks for those companies was mixed. The ticker symbols for the companies are CBI, IMAX, M & TEVA. Here is a quick link to the previous article for reference:

“8/14/2017 – 4 Stock Stinkers CBI, IMAX, M & TEVA”

The August 14 article was previously a member-only article. I’ve opened up the article for general public viewing. So go ahead, take a read and see how I approach and break down stock charts for companies I’ve never looked at before.

Chicago Bridge & Iron – CBI

Chicago Bridge & Iron (CBI) was in a downtrend at the time of the previous writing. I suggested monitoring it closer if its share price broke below the $10 price level. CBI’s share price was at the $11.80 at the time of the previous article. It’s share price ended up reaching a low of $9.55 in August 2017, shortly after my previous article.

This is a 5 year monthly candlestick chart for CBI.

With longer-term buying momentum on its side according to the MACD Histogram on the above chart, combined with a couple of nice buying volume spikes, CBI looks poised to continue its rebound towards the[s2If !current_user_can(access_s2member_level1)]….

If you want to continue reading this article for CBI, IMAX, M & TEVA you must first login.

I review specific price targets for the probable continued rebounds for each stock.

If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)]100 % Target Line from the Fibonacci Extension Tool on the above chart.

If it can break through the 100% Target Line with good buying volume, the 161.8% Target Line is the next overhead price target to wait for.

IMAX Corporation – IMAX

One of my comments in the previous article applies to all stocks that are looking for a bottom. If you follow this simple advice when investing in stocks that are trying to bottom, you will succeed more times than fail.

That was my advice for IMAX Corporation (IMAX) in the previous article linked above. Since then, IMAX has had several months of decreasing selling momentum according to the MACD Histogram on this 5 year monthly chart.

The bonus for IMAX if you wanted to go long is that its share price has not yet rebounded due to the decreasing selling momentum. I placed a Fibonacci Extension Tool on the above chart and see the 100% Target Line as a very probable trade opportunity.

If during its uptrend over the next couple of months IMAX breaks above its high from November 2016, continue to stay long and play the stock to the upside. It may go on to retest the resistance area from the Shooting Star candlestick pattern.

Macy’s – M

Macy’s (M) reports earnings tomorrow before the market opens. This monthly candlestick chart captures M’s entire share price history as a public company.

In the previous article I mentioned that Macy’s (M) had 3 very identifiable support areas below its current price at that time: $18, $10 and $5. M’s share price hit a low of $17.41 and rebounded on above average buying volume.

The amount of buying volume suggest an earnings beat. If by chance M pulls back after earnings, use any pullback to the $25 price level to add more shares during a scale-in purchase strategy.

TEVA Pharmaceuticals – TEVA

The last of the 4 stock stinkers that was requested was TEVA Pharmaceuticals (TEVA). In the previous article, I mentioned

After breaking the $20 support area, TEVA has the $13 and $7.90 possible reversal areas identified.

Well, this 5 year monthly candlestick chart shows that the $13 served as the support area and TEVA appears to be in the process of rebounding. When I say a stock is “rebounding”, that means an upwards trend but not necessarily an uptrend, if you know what I mean. But a rebound can eventually lead to an uptrend. So it all starts with playing the “rebound” to the upside.

The MACD Histogram is showing buying momentum. The Fibonacci Extension Tool has 3 specific targets to watch during this uptrend. The 61.8%, 100% and 161.8% Target Lines. I think the 100% Target Line is the most probable at this time. But trimming some shares at the 61.8% Target Line would still result in over a 10% gain.

As I sit here getting the article ready to publish, I heard that Buffett doubled his stake in TEVA over the last quarter.

CBI, IMAX, M & TEVA Summary

Each of the 4 “stock stinkers” (CBI, IMAX, M & TEVA) seem to be in the process of a rebound of some sort. After several months of sitting on the sidelines for these stocks, they appear to some degree ready for a scale-in investment to go long.

Let me know if there are any questions below – the comments are working again now….

As ususal, good luck trading!

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