Connect with us

Stock Picks

Stock Picks: Invest in SIG and TPR

Published

on

The S&P 500 Index (SPX) is on a tear as it recorded another fresh high of 2,833.03 yesterday. RSIs in the weekly and monthly charts are at their highest level since 1981. While this shows the incredible bullish momentum of the index, investors should take serious caution because it also indicates that the SPX is in extreme overbought territory. It is a territory that no one has ventured since the 1980s.

// -- Discuss and ask questions in our community on Workplace.

However, if you still wish to invest, we recommend selecting issues that are near strong support levels. You risk very little in case the index suddenly corrects, but you are poised to gain a lot if it continues its unstoppable streak. Let’s look at stocks that are close to reliable support levels.

SIG – Signet Jewelers Limited

Signet Jewelers Limited is the largest jewelry retailer in the US, UK, and Canada. With annual sales of approximately $6.4 billion, they operate around 3,600 specialty jewelry stores under the name brands JamesAllen.com, Peoples, Piercing Pagoda, Ernest Jones, H. Samuel, Jared The Galleria of Jewelry, Zales, and Kay Jewelers. Their trademark is branded and differentiated, and exclusive merchandise is offered at basic price ranges with compelling value propositions.

SIG went in a downtrend in January 2016 when it registered a lower high of 135.59. Since then, the stock registered one lower high after the other until it tested support of 50 in May 2017. It bounced from that support level and generated a higher high of 77.94 in November 2017. Even though the stock fell back to 50 the following week, the price action suggests that the stock may have finally found its bottom.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Technical analysis reveal that SIG successfully retested support of 50 on the week of November 20. In addition, volume spiked during that week from an average of around 10 million traded shares per week to a surge of over 35 million. This is a good sign that sellers are losing ammunition.

The strategy is to buy as close to the 50 support level as possible. Should that support level hold firm, our target is the top end of the range of 80.

Take note: SIG has not yet reversed its trend. We are just playing the range. Buy at support, and sell at resistance.  

Weekly SIG Chart

Monthly SIG Chart

As of January 22, the Signet Jewelers Limited stock closed at 55.87.

Summary of Strategy

Buy: As close to 50 as possible

Target: 80

Stop: A close below 48 negates this trade call

 

TPR – Tapestry Incorporated

Tapestry Incorporated is a house of luxury in New York. Included in their portfolio are the modern brands Coach, Kate Spade New York, and Stuart Weitzman. The company aims to embody the approachable and inviting lifestyle that appeals to global audiences through quality, craftsmanship, creativity, and freedom of expression.

TPR went bearish in September 2012 when it generated a lower high of 63.24. The decline was initially slow until a drop below support of 50 in May 2014 accelerated the downtrend. The stock finally found its bottom at 27.22 in September 2015.

Technical analysis reveal that TPR has managed to reverse its trend when it broke out of an inverted head and shoulder pattern in May 2017. The market then pulled back, but it did create a bullish higher low at 40. Now that the stock is once again above the 44 resistance level, which is a good opportunity to place buy orders.

The strategy is to buy as close to 44 support as possible with a target of 60. Keep in mind that TPR is on an uptrend, so 60 may just be the initial target.

Weekly TPR Chart

Monthly TPR Chart

As of January 22, the Tapestry Incorporated stock closed at 47.51.

Summary of Strategy

Buy: 44

Target: 60

Stop: A close below 40 invalidates this trade call.

 

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

3.7 stars on average, based on 168 rated postsKiril is a financial professional with 4+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




Feedback or Requests?

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Stock Picks

Stock Picks: LUK and MRO

Published

on

The S&P 500 (SPX) went as high as 2,742.10 yesterday, May 14, 2018, before succumbing to profit taking. This pullback is healthy given the index’s rally from a low of 2,594.62 on May 3. The bullish outlook remains as long as the SPX remains above 2,680.

// -- Discuss and ask questions in our community on Workplace.

As the index remains resilient, let’s look at stocks flashing signs of strength.

LUK – Leucadia National Corporation

Leucadia National Corporation (LUK) is an American conglomerate and investment holding company. Incorporated in 1968, it is a company focused on return on investment and long-term value. Their financial services business portfolio includes Berkadia Commercial Mortgage LLC, Foursight Capital and Chrome Capital, FXCM Group LLC, HomeFed Corporation, Jefferies Group LLC, and Leucadia Asset Management.

Technical analysis show that LUK is primed to take out resistance of 27. This comes after it created a bullish higher low setup when it dropped to as low as 21.61 on April 6, 2018. The setup was affirmed by a strong bounce to 24.75 on April 9 with volume that’s 173.47% higher than its daily average. Breach of the resistance would trigger the cup and handle reversal structure on the weekly chart.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Also, fundamental analysis show that the trailing twelve months (TTM) price to earnings ratio (PE ratio) of LUK is 19.66. The stock looks fairly valued based on the PE ratio, but it has a five-year maximum of 171.43. This suggests that investors are willing to pay a premium for LUK shares.

The strategy is to buy the breakout at 27 as long as the stock prints seven million shares on the daily chart. Those who bought the higher low are likely to take profits at the resistance. The stock needs buyers to absorb the selling pressure.

Once bulls take out the resistance, the stock may attract trend followers and momentum traders who may help lift LUK to our target of 39. The process may take more than six months.

Weekly LUK Chart

Monthly LUK Chart


As of this writing, the Luecadia National Corporation stock is trading at 24.57.

Summary of Strategy

Buy: Buy breakout at 27 as long as the stock generates seven million shares on the daily chart.

Target: 39

Stop: Close below 25.2 after the breakout.

MRO – Marathon Oil Company

Marathon Oil Corporation (MRO) is an American petroleum and natural gas exploration and production company founded in 1887. They primarily operate in North America: Eagle Ford in Texas, Permian in New Mexico, STACK and SCOOP in Oklahoma, and the Bakken in North Dakota. The company’s international segment produces and markets crude oil and condensate, NGLs and natural gas outside of North America, and Equatorial Guinea (E.G.). The Oil Sands Mining segment mines, extracts, and transports bitumen from Alberta, Canada.

Technical analysis show that MRO has taken out resistance of 19. This triggered the inverse head and shoulders pattern on the weekly chart. The breakout was affirmed by a rally to 21.68 on May 9, 2018. However, the stock is touching overbought territory on the daily chart. The possible dip should be your opportunity to buy near the breakout point.

Furthermore, fundamental analysis reveal that MRO’s trailing twelve months (TTM) PE ratio stands at 14.68. The stock still looks attractive considering that its five-year maximum is 26.02.

The strategy is to buy on dips as close to 19 as possible. As long as the stock stays above 19, it has the momentum to climb to our target of 31.50.

The process may take six months.

Weekly MRO Chart

Monthly MRO Chart


As of this writing, the Marathon Oil stock is trading at 21.42.

Summary of Strategy

Buy: Buy on dips as close to 19 as possible.

Target: 31

Stop: 18

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

3.7 stars on average, based on 168 rated postsKiril is a financial professional with 4+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




Feedback or Requests?

Continue Reading

Stock Picks

Stock Picks: KMB and KR

Published

on

The S&P 500 (SPX) has finally managed to breakout of a descending triangle formation and negate the bearish outlook that came with a series of lower highs. In addition, the index appears to have broken out of a small double bottom reversal pattern on the daily chart. The breakout can help propel the index to resistance of 2,800.

// -- Discuss and ask questions in our community on Workplace.

With the index showing strength, let’s look at stocks that are flashing bullish signals.

KMB – Kimberly-Clark Corporation

Kimberly-Clark Corporation (KMB) is an American multinational company that is engaged in the production and marketing of personal care products made from natural or synthetic fibers. Incorporated in June 1928, the company has over 42,000 employees working in facilities in 38 countries. Kimberly-Clark’s product portfolio includes brands such as Huggies, Kotex, Kleenex, and GoodNites.

Technical analysis show that KMB appears to be bouncing at the 61.8% Fibonacci level. This comes after the stock printed volume that’s 90% higher than its weekly average. The surge in volume points to the presence of bulls at this price level.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

In addition, the last two candlesticks on the weekly chart are hammers. The long wick below the candle’s body suggests that there are buyers below 104. Lastly, a bullish divergence can be seen on the weekly chart. This is a strong hint that a reversal is in sight.

Also, fundamental analysis reveal that the trailing twelve months (TTM) price to earnings ratio (PE ratio) of KMB is 20.61. The stock may fairly priced based on the PE ratio, but it has a five-year maximum of 79.47. This suggests that investors are willing to pay a premium for KMB shares.

The strategy is to buy at current market price. As long as the stock stays above 100, it has the momentum it needs to rally to our target of 118.50. The process may take less than three months.

Weekly KMB Chart

Monthly KMB Chart

As of this writing, the Kimberly-Clark Corporation stock is trading at 104.90.

Summary of Strategy

Buy: Buy at current market level of 104.90.

Target: 118.50

Stop: Close below 100.

KR – The Kroger Company

The Kroger Company (KR) is an American retail company that operates supermarkets, department stores, jewelry stores, and convenience stores across the company. Incorporated in April 1902, Kroger has grown to become the third largest private employer in the United States with over 443,000 employees to help the company generate a net income of $1.907 billion in 2017.

Technical analysis show that KR has established a bullish higher low setup of 22.85 in March 2018. The move came after the stock generated volume that’s 124% higher than its weekly average. Since then, volume has been declining, which suggests that participants are losing interest to sell at this price level. In addition, KR appears to be respecting the 38.2% Fibonacci level.

Furthermore, fundamental analysis reveal that KR’s trailing twelve months (TTM) PE ratio stands at 11.89. The stock still looks attractive. It appears to have upside potential based on its PE ratio.

The strategy is to buy as close to 24 as possible. As long as the stock stays above 23, it may have the strength to rally to our target of 30.

The process may take less than three months.

Weekly KR Chart

Monthly KR Chart

As of this writing, The Kroger Company stock is trading at 24.57.

Summary of Strategy

Buy: Buy as close to 24 as possible.

Target: 30

Stop: 23

 

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

3.7 stars on average, based on 168 rated postsKiril is a financial professional with 4+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




Feedback or Requests?

Continue Reading

Stock Picks

Stock Picks: JEC and KSU

Published

on

The S&P 500 (SPX) has managed to go as high as 2,683.35 yesterday, May 7, 2018. Bulls, however, failed to stay above 2,680 resistance and the index closed at 2,672.63. Unless SPX can take out 2,680 soon, it will likely break 2,600 support.

// -- Discuss and ask questions in our community on Workplace.

As the index shows further signs of weakness, let’s look at stocks that have broken out of long term consolidation.

JEC – Jacobs Engineering Group Incorporated

Jacobs Engineering Group Incorporated (JEC) is a Fortune 500 international firm that provides technical, professional and construction services to industrial, commercial, and governmental clients. Founded in 1947, the company now has 54,000 employees in over 230 locations across the globe. Jacobs Engineering Group, Inc. operates under the following lines of business: Petroleum and Chemicals, Buildings and Infrastructure, Aerospace and Technology, and Industrial.

Technical analysis show that JEC has breached resistance of 60 in November 2017. The price movement triggered the cup and handle reversal pattern on the weekly chart. The breakout was confirmed by a follow through to 72.18 in January 2018.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

However, the stock has been pulling back. This slight dip could be your chance to buy near the higher low.

Also, fundamental analysis reveal that the trailing twelve months (TTM) price to earnings ratio (PE ratio) of JEC is 30. The stock may look expensive based on the PE ratio, but it has a five-year maximum of 36.44. This suggests that investors are willing to pay a premium for JEC shares.

The strategy is to buy on dips as close to 55 as possible. The stock remains bullish as long as it is above this level. It may have the momentum to reach our target of 84.

The process may take more than six months.

Weekly JEC Chart

Monthly JEC Chart

As of this writing, the Jacobs Engineering Group stock is trading at 56.72.

Summary of Strategy

Buy: Buy on dips as close to 55 as possible.

Target: 84

Stop: Close below 52.6.

KSU – Kansas City Southern Railway Company

Kansas City Southern is a transportation holding company with domestic and international rail operations founded in 1887. The company is focused on connecting the central United States’ commercial and industrial markets with Mexican industrial cities. Kansas City Southern operates through subsidiaries, namely: The Kansas City Southern Railway Company (KCSR), Kansas City Southern de Mexico, S.A. de C.V. (KCSM), Mexrail, Inc. (Mexrail), KCSM Servicios, S.A. de C.V. (KCSM Servicios), Meridian Speedway, LLC (MSLLC) and Panama Canal Railway Company (PCRC).

Technical analysis show that KSU has taken out resistance of 100 in June 2017. This triggered the large inverse head and shoulders pattern on the weekly chart. The breakout was validated by a rally to 114.91 in April 2018. Currently, the stock is still in consolidation. This could be your chance to buy near the support.

Furthermore, fundamental analysis reveal that KSU’s trailing twelve months (TTM) PE ratio stands at 11.64. The stock still looks attractive. It has a lot of upside potential based on its PE ratio.

The strategy is to buy on dips as close to 100 as possible. If bulls preserve the new support, they may finish creating the base before moving to our target of 125.

The process may take more than six months.

Weekly KSU Chart

Monthly KSU Chart

As of this writing, the Kansas City Southern Railway Company stock is trading at 106.89.

Summary of Strategy

Buy: Buy on dips as close to 100 as possible.

Target: 125

Stop: 95

 

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

3.7 stars on average, based on 168 rated postsKiril is a financial professional with 4+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending