Amazon.com Inc. (AMZN) fell to support at the September 2020 and March 2021 lows at the close of Friday’s session, raising odds for a breakdown from the 18-month topping pattern. It’s typical for stocks to bounce at least once at a major support level but Netflix Inc. (NFLX) defied that expectation when it ripped through 475 on Friday. Of course, almost anything is possible right now, with the S&P Volatility Index closing in on 30.
International Business Machines Corp. (IBM) reports Q4 2021 results after Monday’s closing bell, with analysts looking for a profit of $3.29 per share on $15.96 billion in revenue. November’s Kyndryl Holdings Inc. (KD) spin-off will skew the results, forcing analysts to look for clues about growth prospects for the new slimmed-down operation. IBM failed another attempt to break a 9-year downtrend earlier this month but the new cloud-focused tech giant could defy the odds and enter a new uptrend.
Bitcoin (BTC) fell within 6,000 points of summer support above 28,000 on Saturday, raising fears the crypto king will complete the next leg of a massive double top pattern. The current downdraft has already crossed the .786 Fibonacci retracement level of the June into November rally, predicting it will eventually complete a 100% retracement into the prior low. A breakdown could have a traumatic effect on new traders who have allowed ideology to overcome risk management.
iShares Russell-2000 Index Fund ETF (IWM) broke down from a 12-month topping pattern last week, dropping below 200 for the first time since the start of 2021. The decline is shocking because January marks the most positive seasonality of the year for the small cap universe. This bearish divergence is sending shock waves through other market capitalization tiers, warning participants that broader averages could head into even deeper corrections.
Tesla Inc. (TSLA) reports Q4 2021 earnings after Wednesday’s closing bell, with analysts expecting a profit of $2.36 per share on $16.65 billion in revenue. The stock has been on a seesaw ride since the Q3 report in October, rallying and reversing above 1,200 three times. The broad pattern isn’t encouraging for long-term bulls, with a potential triple top or channeled correction that could reach 800 before attracting sustained buying interest.
Catch up on the latest price action with our new ETF performance breakdown.
Disclosure: the author held no positions in aforementioned securities at the time of publication.
