The following charts are weekly views with 10ma and 40ma plotted. All will be the focus for new trades for the coming week and represent potential new initiations, positions that have already been established (but remain within buying range) or add on opportunities. Charts courtesy of MarketSmith.
(Click any chart to enlarge)
Kornit Digital (KRNT) remains in buy range of its 22.20 pivot. Posting 3 straight quarters of triple digit EPS growth and double digit revenue growth ranging from 15-32%. The weekly RS line is in new highs and the volume pattern here is solid with a 1.3 U/D volume ratio. Analysts are looking for 68% annual EPS growth in 2019. Adding potentially additional fuel to a rally, the short float is 14.5% with 15+ days to cover. Will be watching action around the pivot closely with ideal entry on a dip below the pivot and then reclaim using that same level to tightly manage risk. Rough market environment lately, so keeping things tight and sized small is the proper approach right now, in my humble opinion… if one chooses to get involved at all.
Twilio Inc (TWLO) printed an inside week and price has been dancing around the 88.88 pivot. Posting two consecutive quarters of triple digit EPS growth (highlighted by a 5 cent earnings surprise last quarter) on top of consistent strong double digit revenue growth ranging from 41% to 68%, TWLO has also been a RS leader during the current market correction. With estimates for 45% annual EPS growth in 2019, fund ownership has been on the rise increasing from 247 to 426 over the last year. The right side of the current stage 2 base came straight up off the bottom on the earnings blowout, so sideways action here to consolidate that move is healthy action. If the market is ready to resume its uptrend, TWLO has leadership potential and may be ready for the next leg higher sooner rather than later. I took profits on the earnings report at 7% and 20%, but am stalking re-entry.
A few other ideas worth keeping an eye on are potential breakouts in TMO, EL and TMUS; as well as a 3 weeks tight setup in CHD. Small sized pilot positions if getting involved or remaining sidelined in cash is the prudent approach for me currently. Things can change quickly, but the general markets have plenty more work to do before I’d choose to get aggressive again, even on a holiday shortened week with a seasonally bullish bias.
Disclaimer: None of the presented content represents individual investment advice to buy or sell securities and the information provided is solely for informational, educational and entertainment purposes. Author has no position in securities mentioned at the time of this writing.