$MU $Z and $TWLO are three stocks that look great on both the daily and weekly timeframe.
Micron was a name that people couldn’t stop talking about a month ago; it rallied from $40 to $60 in a straight line on the back of non-stop aggressive bullish call buying. Micron’s earnings number were impressive, but a lot of it was probably already baked into the stock in the short-term. Since its earnings announcement, the stock has retraced about ten points back to its 10-week moving average which is offering a decent risk reward trade. Micron’s numbers were outright impressive; sales were up +58%, and earnings per share were up +213%. Micron has reported stellar numbers for the last four quarters as you can see in the chart below from MarketSmith.
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DAILY AND WEEKLY LOOK
Twilio’s numbers are not as impressive as Micron’s. However, the stock reacted great right after they report their earnings, the gapped up +20% the next day and went from $30 to $42 in a straight line. It’s no secret that the market has been under pressure and that pressure finally caught up to $TWLO. The stock retraced from $42 to $36 which happens to be home to its IPO day WVAP and its most recent earnings VWAP which is the one that jump-started the stock. Also, before this recent ramp, $TWLO was trading sideways for 1.3-years, stuck in a range with no net movement whatsoever. Within that range, buyers and sellers found equilibrium after the sellers were completely in charge after the stock peaked on 9/28/2016, the selling was relentless. The earnings reaction was the catalyst that broke the range to the upside and a pullback to retest the top of the range is normal. This pullback is providing a decent risk reward trade.
Zillow like Micron reported decent earnings, sales were up 24%, and earnings were up 36%, the stock reacted well but the pressure fo the market caught up to it. The recent retracement as taken the stock down its 50-day moving average and its prior peak. This level provides an excellent risk-reward trade in a company was growing rather well as you can see on the MarketSmith chart below.
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Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at email@example.com or 646-480-7463.