Lots of ugly momo-charts out there: TWTR, TSLA, BABA, GPRO, LNKD, NFLX

The past darlings of Wall Street are loosing their glorious looks, and fast. Their charts start to look uglier by the day. Many have similar setups, tight bolligener bands that (have) resolved to the down side. Tightening bollinger bands always foretell a big move, and is something I.I. always watches, as this set up can be very profitable. Once this downward price move happened for each stock, price started hugging the lower band, while the band-width is expanding: price is weak and the selling is very strong. Simple the opposite of an up move.

(click each chart to enlarge, text cont’d below charts)

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Note that once momo-stocks loose their mojo, these really turn into a no-go, since their price action is not based on company fundamentals, but on hype (they’re called momo-stock for a reason). Yes, they are awesome when they go, but when the top… get out. Hence, I.I. has been warning its members of these stocks for weeks now.

You can see how price is now below the -by many traders watched- 50d and 200d SMA for TWRT, TSLA, NFLX. Price is below the 50d SMA for GPRO and LNKD, while GPRO and BABA have not been trading long enough to even form a 200d SMA. However BABA is already taking aim at the 50d SMA. NFLX also experienced a death cross (50d SMA crossed the 200d SMA from above), whereas those crosses are for TWRT and TSLA a matter of time. Note that for all 3 of these stocks these SMAs are now pointing down. BABA’s 50d SMA is still up, but GPRO’s is also down. All in all a rather slow-go picture for these momo-stocks.

Price targets I.I. is watching  for a swingtrade and long term bottoms are

  • TWTR: high $20s for starters, $11 ultimately.
  • TSLA: $180s for starters, $125 ultimately
  • BABA: $100 for starters, $90 or lower
  • GPRO: $64 for starters, $50s ultimately
  • LNKD: $200 for starters, $120s ultimately.
  • NFLX: $240 for starters, $120s ultimately
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