Chart Ideas July
Introduction
Hi Friends!
Welcome back to a new chart ideas. In this article, Andre will take a quick look at 4 charts he believes are currently interesting.
So without further ado, let’s get started!
Nike ($NKE)
This apparel giant has experienced a substantial sell-off this year. Posting one of the worst single day declines in the company's history just a few weeks ago. Currently NKE 0.00%↑ is trading near $70 per share, down over 30% YTD and down 15% within the past 5 years.
The stock is trading slightly above a massive demand zone that has been a pretty notable spot on the chart for years. Acting as a supply zone in 2015, then flipping into demand in 2018 and 2020. Now a third test is being seen which is something that needs to be watched closely as this may present a nice entry for a long term position or even a swing trade.
For a swing trade, buying in the zone from $66 - $70 has the potential to bring an 25% - 30% return. However, I do want to say. That this trade will definitely take time and will not be something that just reverses instantly from this place. After a stock gets sold off to this extent, it is good to keep in mind it could take months before we see a turn around!
Swing from $66 - $70 with a target of $85 and then $100 in 8-12 months, but be careful for a break of the $66 support.
Note from Brent: I’m currently short puts on NKE since last week. Yesterday, we saw quite a nice bounce. Let’s see if Nike is finally ready for an uptrend.
Marathon Digital ($MARA)
Crypto miners have been on the move lately, breaking out of large formations that have been shaping up since the beginning of this year. One of the best setups that I have seen so far is within MARA 0.00%↑
We can see a large bull pennant has formed since december 2023 and we finally saw a breakout which does imply a move higher is likely coming. In addition, we are now attempting to break out above its long term trend line resistance. This is drawn from the high seen in November 2021. If a move above can be seen soon, MARA 0.00%↑ stock could run as high as $50 which is a move of 85%!
What do you think? Are crypto miners ready for another leg up?
Bitcoin ($BTC)
Bitcoin has seen a beautiful bull flag on its weekly and monthly chart. This comes as we have been sitting right below its all time highs! A much different formation than what we have seen last time we were at these levels.
I would be watching its supply zone which sits at 68k - 70k. Once that is breached, we could expect to see 85k in quite a short time period. Once $BTC breaks out. This will also cause all of the miners to rally extensively, which is interesting to keep in mind.
Miners like RIOT 0.00%↑ CORZ 0.00%↑ IREN 0.00%↑ MARA 0.00%↑ or even crypto proxies like COIN 0.00%↑ or MSTR 0.00%↑ are must watch stocks in case of a break out.
Intellia therapeutics $NTLA
Intellia therapeutics is currently one of Cathie Wood’s top picks in her popular fund ARKK 0.00%↑ There has been a large falling wedge formation ever since it peaked in June 2021. It is starting to get extremely tight. The implied move from this pattern is up as a falling wedge is bullish.
A break out would begin when $30 is broken. However it is important to keep in mind that there is a large supply zone ahead that will likely cause some issues in the short term before the brea kout actually can accelerate.
My target on a break out would be $50 in 6 - 8 months. That would be putting this stock at levels not seen since late 2022. Risk would be if $17 is broken which is the bottom of this wedge. In that event, seeing as low as $10 would be possible.
Bonus Chart! Coinbase ($COIN)
Brent here: Due to the discussion of crypto stocks and Bitcoin as a whole. I thought this Coinbase chart was nice to share. COIN 0.00%↑ saw a clean break out and might continue higher to the 52W-high resistance.
All in all, crypto stocks are must to keep an eye on if you are a trader. Many interesting setups alongside a pretty interesting Bitcoin set-up.
That was it for this quick chart review. Leave a like and comment below if you enjoyed this post. Sharing with your friends, colleagues, and family is much appreciated!
Let us know your thoughts. Any interesting setups that we haven’t discussed? Drop them in the comments.
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@ad_investing22 and @Stock_Inf0
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