Another factor that will determine this week is the start of earnings season of big companies (NFLX, C, GS, etc). This is directly related to the takeover of Trump, as it is estimated that the only way that the market continues upward trend is that the earnings season is extraordinary. These two factors undoubtedly generate high volatility in all sectors, we will be alert to opportunities that arise.
The Asian market has high volatility generated by the uncertainty of the statements Trump. But our choice in this market, BABA, appears to be within the "protected" Trump as Jack Ma (BABA) has offered to create jobs within the US at the meeting he had with the president-elect. This generated a positive feeling about the action, validating our analysis of the previous week. Another event in our favor are the good results being presented Snapchat because BABA owns 20% of this company, we will see how this is reflected in their earnings that are on Tuesday of next week. We believe that earnings in our favor and help our position reaches the target price.
In the energy sector it is marked by the global concern that the efforts of the production cuts by the OPEC undermined by other producers. We maintain our analysis that oil will remain fluctuating between $ 50 and 55 $ per barrel until they start to see the results of production cuts in late January / early February or an important statement is made.
One of the strongest stocks in the sector has been PBR, after presenting his plans debt reduction for this 2017 and regain strength after the return to normal of the dollar against the local currency, the stock has risen 15% in the past 4 weeks. After failing in the attempt to overcome resistance at $ 11.60 last week, we will be monitoring to assess a possible entry as if it breaks this resistance will tend to reach the rank of your 52 week high ($ 12.56).
Our analysis of the APA open position remains the same. The stock has shown to remain in the area of its EMA50 (daily chart), exponential average to that usually respond the share price, which indicates that you can bounce upward at any time and break your 52 week high ($ 69 ).
As for the metals industry have emerged very positive news related infrastructure plan Trump, a factor that has kept up the price of metals such as iron and should help the sector to continue its uptrend after consolidation period .As we determine the previous week, CLF had a breakout in the range of $ 9 and had a rise !! 17%. Notably CLF is one of the most benefit from these latest news, so we expect the uptrend to continue in action this week. We add to our list of observation in this group AKS.
Gold, as mentioned at the beginning of reportIt may be one of the major beneficiaries of uncertainty and possible sell-off after the takeover of Trump. NUGT can be one of the alternatives to take advantage of this movement, will be monitoring.
In the solar sector, as discussed last week, one possibility was that FSLR conduct a breakout in the range of $ 34, and to the surprise of many it was, rising to the rank of $ 36. We will have it under observation.
TSLA unfortunately broke the strong resistance we mentioned last week and decided to close the position. We remain firm in our analysis that the stock is overbought, there is no fundamental to sustain that price and we do not see any reason that follow up action. But we must respect our technical analysis and a strong resistance breakout, is a clear signal closing position as our portfolio is focused on maintaining long-term open positions.
The technology sector will have a lot of volatility by the factors we discussed at the beginning of report (Earnings and takeover).FB was another of our successes last week. As discussed we broke the resistance $ 124-125 and after the breakout reached the $ 129. We hope that could take advantage of such information. This week FB starts with a downgrade, which can make retake the area of $ 120 / $ 125 before continuing upward.
AAPL reiterate our analysis, we see a downside potential, $ 119- $ 120 remains a very strong resistance and although it has not yet subsided, we soon will. Our fundamental analysis of stocks shows no reason to hold a breakout. We believe that a correction to the range of $ 112- $ 110 is more than likely.
TWTR presented resistance exactly where noted in reportabove ($ 17.50). It notes that the action is under pressure after receiving a downgrade last week and another today. Yet the latter target price downgrade was $ 18 and action presented force remaining above the $ 17. Will have to see the reaction of investors this week. We keep the monitored action but remain confident in our position.
BIDU failed to consolidate the breakout on the resistance of $ 180. Yet we still have under observation and we maintain our bullish analysis of the action.CMG rose and reached the $ 415 last week. This week starts with a downgrade pushing action to test the support level of $ 400. It may be a good opportunity for purchase if he can stay above $ 400.
Finally we are very aware of how the earnings of large companies develop, this may mean the continuation of the current rally or correction.
Our team of traders are constantly monitoring the market, preparing for the next recommendation.
Actions we are watching closely: APA, CLF, FCX, BABA, BIDU, FB, NUGT upward; AAPL potentially TSLA down. We will keep you abreast of any relevant information that affects our watch list or open positions during the week.