Spanning 3 sessions, the pullback from its highs was short-lived, yet by its own standards quite deep at -2.7%. Still, support was found at 3065 and prices are now consolidating just below record highs once more. Unless Trump unveils tariffs on China over the weekend, we’d expect it to break to new highs. Yet we doubt he’ll want to knock equities from their perch heading into the new year, so perhaps they’ll be delayed again anyway.All sectors have remained in the black over the past five session, with real estate, consumer services and even energy leading the way.6 out of the 11 sectors trade just off record highs, which underscores the strength of this bullish trend.With the index poised to break to new highs (sooner or later) then the relative strength watchlist will focus on outperforming stocks for now.Chart below also include ideas that are on price action only, so may not factor in whether it’s in an outperforming/underperforming sector.Mastercard CFD/DFT (NYSE:): Trading just off record highs amid a multi-year bull run, Mastercard could be poised for another bullish breakout. A tall bullish candle marks a likely swing low at 281.50, which found support between the 20 and 50-day eMA. Whilst thinner volumes over recent sessions warn the breakout may not be immediate, given the strength of the trend from the 258.51 low, an eventual break higher is favoured.
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NextEra Energy Inc CFD/DFT (NYSE:): Its parabolic trend continues (zoon out to see the chart from the 1990’s and you’ll see what we mean) and price action is considering a break to new highs. Having rebounded from 220 support at the trendline, price action is now carving out a bullish flag which, if successful, projects a target around 248.
Bias remains bullish above the trendline, although we’d prefer to see 231 hold as support to assume a bullish flag remains in play.Traders can either wait for a break of the bull flag or, if confident it could revert to its trend, enter during the consolidation period.As it’s a long-term bullish trend, an upside target could remain open. Although the bull-flag target around 248 could also be considered.McDonald's Corp CFD/DFT: As much as we love them, we’re bearish on burgers whilst McDonalds remains below 200. Having carved out a top pattern between June through October, prices gapped topped proceeded to trade below the projected target around 190. The 50-day eMA ha crossed below the 200-day eMA, both of which are capping as resistance around the 38.2% Fibonacci level and the round number 200. Prices are now consolidating below a cluster of resistance around 200, so we’re waiting for this to break lower or complete its correction beneath the bearish trendline.
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Price Action Update:
Advanced Micro Device CFD/DFT: After gapping lower through support then breaking higher, it would have been difficult to gain a decent entry. This is on the backburner until the picture becomes clearer (although give its longer-term uptrend, we’ll continue to monitor its potential for a trough)United Technologies (NYSE:) CFD/DFT: The bias for a pullback has played out, albeit a little deeper than anticipated as it dipped beneath 144.35 support. Yet support has been found at the 50-day eMA and the bearish days were on lower volume to suggest the declines were indeed a correction. Bulls could either wait for a break above 149.81 or a consider a break of a bearish channel. Ultimately, we’d prefer to at least see a bullish candle on the daily as, for far, each candle has been bearish. Apache Corp (NYSE:) CFD/DFT: Due to the large gap down at the open, one would have to have already been ‘in it to win it’. So whilst the directional bias was correct, the gap was unfortunate. It remains on the bearish watchlist for another entry, so perhaps bears could consider fading into minor rallies below 22.19 with view for it to break to new lows.3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure
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Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.
Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
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