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US STOCKS: AMZN (AMAZON.COM, INC.) – May 27, 2010

Last month, Amazon stocks (AMZN) hit an all time-high of $151.00. At present, it continues to move along an uptrend though it appears to be forming a bearish reversal pattern as well. Above, we could see a potential double top (indicated by the red arcs). If the price breaks down from the formation and the uptrend line, the next level of supports would be at $114.00 and $110.00. If the uptrend remains intact, we could see the price hit its previous once again. The stock could even skyrocket if and when it clears its all-time high. But if it does not, it could probably draw another bearish reversal pattern in the form of a head and shoulders formation. A break from the marked neckline could likewise send the stock down to the mentioned support levels. The worse case scenario here is that it could slide all the way down to the $100.00 level to fill up the previous gap.

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US STOCKS: ABC (AMERISOURCEBERGEN CORP.) – May 27, 2010

AmerisourceBergen Corp. (ABC) stocks has been going up for a year now as it moves in an upward trading channel (indicated by the blue dotted lines). As part of the biotechnology and and drug industry, a rise in demand in healthcare products urged the stock prices to reach an all-time high of $31.96 (greed dotted line) a couple of weeks ago. Currently, there is what looks to be a 1-month bearish divergence between the price and the MACD which could trigger a break from the ascending channel. If it does, we could see the price head to the 28.95 support (violet line). But if it does not and the price bounces from the channel’s support and the 30.00 handle, the stock could continue moving upward and tap its all-time high again. So until the channel gets broken and the stock reverses, I’d remain bullish on it.

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US STOCK MARKET INDEX: DJI (DOW JONES INDUSTRIAL AVERAGE) – May 26,2010

The Dow Jones Industrial Average (^DJI)  opened with a 230 point drop during the last trading session. Still, it was able to recover reducing the damage to a 23-point decline. Chart-wise, the index was able to bounce off from the support line at 9,756 (as mentioned in the earlier post on ^DJI) which prevented a complete breakdown from the ascending channel. The Dow Jones may head all the way up to its 11,000 resistance (green dotted line) as the stochastic is oversold but if it fails to, it could retest the current support at 9,700-9,800 (violet dotted line) or even break below it. If it breaks below 9,700, we could see the price head to the next price mark at 9,378. At its current rate, the Dow Jones would be moving within 9,800-10,950.

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US STOCKS: MSFT (MICROSOFT CORPORATION) – May 25, 2010

Last Thursday, the shares of Microsoft Corporation dropped and broke (red circle) below the neckline (red line) of the double top formation (indicated by the 2 red arcs) that formed after the 10-month ascending channel (blue dotted lines) ended. The price of the MSFT stocks opened at 27.65 but closed weaker at $27.11 per share last Thursday. Given the recent breakdown, it could be heading down to the support at 24.43 (violet dotted line). In case the pair retraces and moves up, the double top’s neckline could act as a new resistance to halt it from rising higher. Though for the mean time, I expect the pair to range for awhile somewhere between 24.43 and 27.60 before probably continuing its descent.

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US STOCKS: BA (THE BOEING COMPANY) – May 24, 2010

Last Friday’s trading session ended the Dow Jones Industrial Average’s losing streak as it closed at 10,193.4 with a 1.2% gain. One of the stocks that pushed the index further to closing with gains was the Boeing Company (BA) which was up by 2.5%.

The BA stocks were able to bounce off its 1-year ascending channel’s support line (indicated by the red arc) and avoid a break down because of its gains. After a bullish candle was formed during the last trading session, the stock price might head all the way up to the next resistance lines (green dotted lines) at 73 and 76 or merely just continue moving inside the ascending channel. If it fails and a breakdown from the channel occurs, the support I’m looking on to is 61 (red dotted line). If it still doesn’t hold the price from falling, the next support after 61 is 57 (yellow dotted line).

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