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LTHM
Stop loss: 11.80 (High risk)
Price target: 15.30
Second PT: 16.00
Analysis done on daily candles. LTHM fired off on all cylinders to end the week after the company posted earnings that show progress in their business. Livent Corporation is a producer of performance lithium compounds, which is one of the most valuable businesses given the shift towards electric vehicles across the world. Livent recently announced that they are also extending their contract with Tesla until the end of 2021, which is appealing to investors. In terms of the technical analysis, the stock broke out from a key resistance last week when it pushed above the 12.00 price point. Along with the breakout came promising volume that pushed it to nearly 14.00 before it slowed down. Our indicated entry is based on a pull back play. Since the stock pushed itself into overbought territory on the hourly candles, I’d like to see the stock pull back for a bargained entry. If the stock doesn’t give a pull back, the second way to attack this set up is by entering on the 14.00 breakout. If the stock gives a 14.00 breakout, price target remains the same.
DGLY
Stop loss: 2.72
Price target: 3.45-3.50
Analysis done on hourly candles. Our current world is demanding more and more law enforcement surveillance to ensure that all citizens are treated with proper justice and Digital Ally has positioned themselves perfectly for this change. This company engages in the production of digital audio and video recorders for vehicles, primary law enforcement and commercial. They also specialize in making body cams for police officers and have been landing deal after deal for months. Looking at their chart history, I’m seeing pockets of bullish buying accumulating overtime, which could mean the stock is on its way to an upside move. The last two weeks alone, the stock has shown more volume that it has seen in months as it inches closer to the 3.00 resistance. The stock attempted a breakout last week that failed to hold, however it remained near the highs and didn’t give up much gain. The company’s earnings are set to take place on Thursday so our anticipation is that the stock makes this breakout again before then for us to enter and exit fully.
TSM
Stop loss: 86.30
Price target: 96.00-97.00
Analysis done on two hour candles. A fresh new revenue guidance increase for 2021 puts this this company on track for a massive upside potential. While most investors are focused on Apple itself, we’re seeing potential in their chip manufacturers. iPhone exports are reportedly blowing passed expectations and the chart of both Apple and TSM reflect the demand. TSM’s daily chart (Not shown) is displaying a great deal of buying volume and also formed a bullish engulfing to end the week just below their all time high. The stock is pushing into overbought territory but buying volume is clearly still there and could take it higher through this week.
AAPL
Stop loss: 116.40
Price target: 124.00-125.00
Analysis done on two hour candles. As more investors begin to soak in the iPhone “super cycle”, we can expect Apple’s stock to begin reacting to the anticipation of Q4. Apple generally does well in the fourth quarter, but this year it is special due to this super cycle. If you’re not familiar, the super cycle is the expectation from the market that consumers have been holding off on getting new phone in anticipation of the 5g iPhone 12. Now that the phone is available, reports of T-Mobile suggest that this super cycle is indeed taking place. Chart wise, the stock is also displaying strength as it approaches the 120.00 resistance. Apple has been in the dumps for quite sometime now and this recovery from their earnings drop is likely going to turn into a rally at the break of 120.00.
BGFV
Stop loss: 8.95 (Low risk)
OR
Stop loss: 8.40 (High risk)
Price target: 9.90-10.00
Analysis done on 30 minute candles. Another fantastic earnings statement just emerged from Big 5 along with an increased outlook for 2021, suggesting that the company is still heavily benefitting from the pandemic considering the industry they’re in. Looking back at its recent history, the stock suffered poorly from the recent market sell off, but has recovered impressively after their solid earnings. Generally we’ve seen BGFV move steadily and here we have it setting up a pennant pattern after a strong move since they found support at 6.00. As it approaches the 9.70 resistance, one has to consider that the stock hasn’t seen these prices since five years ago, meaning it may struggle a bit to exit but all signs are pointing bullish. Allow yourself to have patience with this set up.
F
Stop loss: 7.54
Price target: 8.35-8.40
Analysis done on two hour candles. A Biden presidency could be good for American car makers who have began their shift to electric vehicles. Given that Ford already has an established name, they can easily leapfrog over new rising competitors and increase their business with the world change. Their chart looks healthy overall as the stock continues to consolidate between 7.60-8.00. It’s been moving steadily over the last few weeks and held up pretty strongly even through the market turmoil. Overall Ford’s stock is undervalued in my humble opinion and they’re making the right moves to gain more attention from investors. The price target suggested is just the start of what could be a good 2021 for the company.
These stocks are the preliminary stocks we're watching this week. All indicated price points are subject to change based on market performance and health. None of the information on this website is posted with investment advice intent or purpose. We encourage you to do you own research before entering and exiting any stocks. Trade at your own risk.