Pre-Market Analysis for Thursday, July 29
Today in the Stock Market
The market experienced some modest selling pressure on Wednesday and the Dow Jones Industrial Average was unable to move higher. We expect to see this sideways trading continue for the near-term. Because of the relatively low volume, the index won’t be able to generate enough momentum to break above 10,600. At the same time, we’re not expecting to see any sharp sell-off because second-quarter earnings have been mostly positive – helping to build investor confidence. In the short-term, we think 10,400 will act as support and 10,600 will continue to act as resistance.
For the second straight session the tech sector underperformed the general market. QQQQ, the ETF of the NASDAQ composite dropped 0.67% on Wednesday and is testing its first major support point at $46.00. A break below this price would lead to a test of stronger support around $45.50. Similar to the general market, we are expecting to see some consolidation in the short-term, with resistance at $46.50 and support at $45.50.
The drop in gold prices was just too attractive for some investors to pass up. GLD tested strong support at $113.00 on Wednesday morning but that triggered a buy signal and investors were able to drive the ETF to close at $113.48.
USO, a popular oil ETF, tested support at $34.00 on Wednesday and we are expecting this area to hold in the near term. As optimism grows, investors will jump back into the oil market and push the ETF higher. Although it remains volatile for the short-term, we are expecting USO to develop a significant medium to long-term uptrend.
ADLS finally shaped up the way we were expecting it too. The move on Monday created a buy signal when the price broke above $0.045. On Tuesday, we saw some profit-taking on very low volume but that provided investors with another chance to load up on the stock. As soon as volume returned, the price climbed higher.
That strong momentum led to a big move Wednesday. From the open, investors jumped on ADLS. In the morning it rallied to a high of $0.069 which then triggered our sell signal. That is a gain of 53%.
Our trade in PARD is not shaping up the way we expected. The stock looked like it was building momentum and we recommended investors buy at $0.61. So far the price has not been able to hold any gains above this area. The price action has not triggered our stop-loss yet, which is $0.55. If the price does fall to that area, it would represent a 10% loss.
TDGI was extremely volatile on Wednesday. In the last hour of trading volume started to pick up and we received a buy signal when the stock broke above resistance at $0.045. We are expecting to see a strong open this morning.
So far SKPI is turning into an even trade for us. We jumped on the stock when it broke through resistance at $0.42 on Tuesday but we did not see any follow through on Wednesday. SKPI started the session weaker and opened at $0.4797, much lower than Monday’s closing price of $0.505. If volume can build the price would easily recover from yesterday’s drop.
On Wednesday we added TITL to our watch-list, noting that we wanted to see some follow through buying. The stock traded with low volume for most of the day, which caused the price to drop to $0.016. It did manage to recover modestly and rallied to a high of $0.025 but there was not enough activity to maintain its high and the price fell back into modestly negative territory at $0.0191.
ABK offered traders another opportunity for profits on Wednesday. The stock gapped higher and opened at $1.05. However there were very few buyers and the price quickly dropped to a low of $0.923. We think there are higher risks that the price will continue to fall so we’re just watching and waiting for another good entry point.
WAMUQ is also back on our watch-list. This stock has made some decent gains before and we think there is another opportunity. On July 19, WAMUQ rallied to a high of $0.22. Since then the volume has dropped back down but the price is holding good support around $0.17. If this price can attract new investors, we should see another drive higher. Right now we just want to watch this stock as it consolidates between support at $0.17 and resistance at $0.18.
ALTI popped up on our radar screen on Wednesday. The stock is trading in a fairly tight range, with support at $0.35 and resistance at $0.40. There was some modest buying on Wednesday as the stock closed at $0.37. A break of $0.40 on strong volume should provide investors with an opportunity to make a quick profit.
We are also adding COIN to our watch-list this morning. Earlier this month it made some major gains, moving from a low at $0.49 on July 6 to a high of $0.736 on July 14. Despite hitting some selling pressure in the last two weeks, COIN has managed to hold on to some recent gains. We want to see if the price can hold support at $0.60 in the near-term and attract new investors. A break above $0.65 on strong volume could create some strong momentum and drive the price back above $0.70.
Have a Great Trading Day!
Your Hyper Growth Stock Team
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