$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.
CLICK TO ENLARGE
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.
CLICK TO ENLARGE
I’m opening my managed assets program if you have an interest or need a second opinion feel free to REACH OUT.
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 firstname.lastname@example.org or 646-480-7463.