Novartis RSI is the most oversold it has been in 9 years
It now sits on a strong support with a range of just 2 dollars below current levels
Fib retracement of 1.618 takes this to 74 dollars before the turnaround
All of pharma has taken a hit over the last 4 weeks without real justification.
I believe all pop up after they announce earnings throughout the week
CLEAR bullish divergence on this last drop from earnings
Sitting exactly on the .618 Fibonacci level from the July 2015 peak.
May be a bit premature, but this falling wedge is taking shape.
MACD on the up. Great buy for at least the next 2 months
Bullish Divergence on RSI on recent low
MACD coming back around
Decreasing selling volume with first good breakout buy volume
Could see a 1 more dollar drop at most to touch the .786 fib retracement
Should see breakout before end of week
Bearish Divergences on RSI
Failed to close above 175 two consecutive highs.
Initially thought this was a head and shoulders, but the right shoulder peaked above the head slightly
Either way, it's time to fill that gap
Down to 152.50
Looks like bottom is finally in for Rite Aid.
Bullish Divergence on last low.
TA aside, Rite Aid is still a big player in health care that was beaten down after multiple failed buyouts.
The stock is undervalued.
Careful of the Reverse stock split the board has approved. No official date of execution yet, but I believe we see growth regardless.
The stock being...
Tesla forming a bullish falling wedge
Decreasing selling volume
Now in a strong support range (260-265)
IMO we do not break 260
A significant break below 260 would invalidate the pattern and would look to buy at 250
Tesla is playing perfectly into a broadening megaphone top
1. 3 successively higher peaks (Last one is in the making)
2. 2 successively lower troughs (Already formed)
3. Often occurs at the end of a major bull market (as we are in)
The ONLY thing missing is the expanding volume upon the swings, but I see enough to believe a major topple comes after this last peak...
Symmetrical triangle, a continuation pattern.
So we clearly failed not only to reach the recent 2815 resistance, but also the March 2018 resistance of 2800.
Next we go down to support from late April/early May.
Play the triangle. Until we see a breach of the triangle (should be down), enjoy the swings.
Bullish falling wedge.
First, more down. Buy zone is 260-2.
260 has strong support .
Also is the 0.5 Fib level.
In a prolonged bear situation, the .618 level is in play at the very end of the falling wedge (box 2).
I do not see this happening, but it is possible if overall market sell off is still high at 260.
Ascending triangle in the making
RSI and MACD are sells right now
Look for a drop in the next few days to 77 within the ascending triangle range, then up and out from there
Fundamentally, CVS is one of my favorite companies. It will transform the healthcare space (overview below)
CVS officially closed on its Aetna deal over the last few weeks.
Most are unaware...
Short term down trend was broken on volume on Friday. RSI and MACD have more room to run.
More good news on tariffs over the weekend.
I expect a retest of the recent resistance of 2815.
If it fails to convincingly break 2815, double bottom is out of play and triple top prevails and we see far worse lows than anything in 2018.
Long for the next week, but then watch...
Bottoming pattern almost complete
RSI on steady incline
First good buying volume seen in months
Must break 21.00 on volume to confirm the end of the downtrend
Although tariffs don't necessarily effect IQ directly, it is a big name Chinese stock. Expect a reaction.