Quick Hits 9/1/2016 – Monthly Candlestick Chart Review
Monthly Candlestick Chart Review
August 2016 is now over from a trading perspective. Therefore, it is a great time for a monthly candlestick chart review on your favorite stocks. I've picked Apple, Facebook, Alphabet and Sirius XM Holdings to start off this series of updates.
The following charts are all 5 year monthly candlestick charts unless otherwise noted. Be certain to request your specific stocks in the Idea Chamber.
AAPL - Apple
A $14 billion tax bill. Not too many companies can pay that and not even flinch. That being said, I would have much rather seen that $14 billion go towards the stock repurchase program or a special one-time dividend.
AAPL has found strong support around the $106 area as I previously wrote about and continues to trend in the right direction.
FB - Facebook
Tech companies typically perform the best during the last part of a bull run. I have mentioned that several times but thought that it bears mentioning again.
FB's share price seems to be catching a bid the last few days with some increased buying. That buying is better seen on a weekly candlestick chart rather than this monthly candlestick chart.
Consider August a month of consolidation after another great earnings report. FB's share price should be eyeballing new all-time highs in the very near future.
GOOGL - Alphabet
Alphabet's (GOOGL) share price formed a Gravestone Doji Candlestick Pattern in August 2016, a bearish signal. The candlestick pattern did not get the volume confirmation though as volume in August 2016 was lighter than in July 2016.
This monthly candlestick chart shows GOOGL's share price activity since inception (approximately 12 years).
For Alphabet, since there is some uncertainty with its monthly candlestick chart because of the Gravestone Doji Candlestick Pattern, I want to take a look at the shorter-term chart for GOOGL as well.
This next chart is a 1 year daily candlestick chart to examine GOOGL's current uptrend using price & volume, trendlines, candlestick patterns and Elliott wave analysis.
Here is the executive summary:
- Alphabet (GOOGL) broke through its overhead trendline resistance with a large price gap-up after its most recent quarterly earnings report
- GOOGL's share price has formed 2 Doji Candlestick Patterns in the last 2 days right above the support area from the Rising Window Candlestick Patterns, a bullish signal considering the 2nd Doji made a higher high and higher low than the first Doji on rising volume
- The MACD Histogram is showing that the selling momentum is beginning to slow down, an early indicator that a new uptrend may be ready to resume
- From an Elliott Wave perspective, GOOGL's share price formed an extended Wave 3 in its Bullish Impulse Wave Pattern that I illustrated; the support area is the same as Rising Window Candlestick Pattern's support area
SIRI - Sirius XM Holdings
Possible rising interest rates could hurt the speed of growth for car sales. Car sales already have a tough comparison to last year, the year a lot of analysts called peak auto. But current year autos are almost at or are around the 17 million mark when annualized. That's still not too shabby.
A Dark Cloud Cover Candlestick Pattern developed in August 2016. That is a bearish reversal candlestick pattern, meaning the uptrend is over or almost over. That seems to confirm my previous estimate of SIRI's share price in an Expanded Flat Wave Pattern.