Best stocks, crypto and ETFs to watch this week
Netflix Inc. (NFLX) is making headlines these days for Squid Games and a controversial Dave Chappelle special and the stock flies, breaking through a tough resistance between 550 and 600. However, there is considerable risk to shareholders when it goes to the profit base Tuesday because subscriber growth has slowed in recent quarters, especially in the US market. Traders could punish the stock after the report if third quarter metrics continue to lag bullish projections.
International Business Machines Corp. (IBM) has underperformed other tech stocks longer than most millennials traded in financial markets, peaking in 2013. trendline of the year in the 140s. The old giant’s report School Wednesday could be the catalyst that will finally break the downtrend, opening the door to much higher prices.
Tesla Inc. (TSLA) has made steady progress since its 50-week moving average rebound in May and is now trading just 51 points below the all-time January high of 900.40. He will have the opportunity to close the distance when he reports earnings after Wednesday’s close, but cautious comments about China or supply constraints could make investors doubtful. Wall Street analysts are not helping the bulls, with a “Hold” consensus rating and a median price target more than 70 points below Friday’s close.
Ethereum rose to resistance at the 0.786 Fibonacci retracement level of the second quarter sell-off last week, setting up a test at the 4,000 level. Bitcoin just sliced its 0.786 retracement like butter, breaking above 60 000. However, Ethereum failed to break out at this harmonic level in September, adding another layer of resistance. In turn, this suggests a bilateral strategy that buys a rally above 4,025 or sells short down to 3,800, whichever comes first.
U.S. Natural Gas ETF (UNG) remains in a long-term downtrend, even though its price has nearly tripled from the all-time January 2021 low of 8.22. Three divisions reversed since 2011 have undermined the life of the long-term model, reducing the technical power of large percentage price movements. More importantly, the rally just hit major resistance at the 200 week moving average at 23, significantly increasing the odds of profitable short selling in the fourth quarter.
For an overview of this week’s economic events, check out our economic calendar.
Disclosure: The author did not hold any position in the above titles at the time of publication.