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Trends And Tipping Points For Apple, Alibaba And Twitter

Adam Hewison - MarketClub

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Yesterday, the 900-pound gorilla, Apple Inc. (NASDAQ:AAPL) reported earnings and by all accounts they were outstanding, far outpacing all of the pre-earnings estimates. But the reality is, the stock price barely moved and is up just 1.5% in today's early trading. I still believe that Apple is not out of the woods yet and it is yet to have any new blockbuster products or innovations.

The weekly and monthly Trade Triangles are indicating that Apple is in a trading range. The longer-term monthly Trade Triangle is red indicating the major trend remains negative. A tipping point for Apple on the downside would be a move below $109.50, that would turn all Trade Triangles red indicating a downward move. On the upside, Apple needs to move over $122.60 to reignite the bull trend.

Also reporting yesterday was Alibaba Group Holding Limited (NYSE:BABA). This Amazon-like company surprised the market with very strong earnings which pushed the stock up almost 8% in pre-market trading yesterday. Later in the day, the stock came back down, but still managed to remain in the positive column for the day.

The weekly and monthly Trade Triangles are indicating that Alibaba is in a trading range. The longer-term monthly Trade Triangle is red indicating the major trend remains negative for the stock. The weekly Trade Triangle is green indicating a sidelines position should be adopted until an uptrend trend can be established.

Alibaba will have a major trend change to the upside on a move over the $85.40 level. Conversely should the stock drop below $73.60, it would warrant a short position.

One stock that reported yesterday that got hammered in the market this morning was Twitter Inc. (NYSE:TWTR). The stock price was down over 10% in pre-market trading. Even with the return of Jack Dorsey, the original company founder, the stock looks shaky as they have yet to find a way to monetize their product. Another disappointment for Twitter was that it only managed to attract 3 million users last quarter which was viewed as a slow down in user growth for this company.

The weekly and monthly Trade Triangles are indicating that Twitter is in a trading range. The longer-term monthly Trade Triangle is red indicating the major trend remains negative for this stock. The weekly Trade Triangle is green indicating a sidelines position should be adopted until an uptrend can be established. A move below the $26.33 level would trigger a red weekly Trade Triangle indicating the resumption of the downtrend trend. In order for Twitter to turn into a bull market, its stock would need to trade over the $39.00 level.

Gold (FOREX:XAUUSDO) gave a buy signal this morning at 1169.87. If you did not see my post on gold earlier, you can watch that video right here. I'm looking for gold to move another $70 to $80 on the upside and have a target zone between $1,230 and $1,240.

In addition to Apple, Alibaba and Twitter, I will be looking at the major indices, crude oil and the euro.

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