Stocks had a solid showing this week, and that is likely to continue when the week of June 24 starts. However, there is the potential for a minor pullback. The chart below shows that we are in the early stages of what may be a rising wedge pattern. It would suggest that the index continues to rise through June 26 and then set up for a potential pullback, which could result in a drop to around 2,940.
It would certainly not be the worst scenario. I wouldn’t mind a drop to around 2890 either, allowing for a gap fill.
Netflix pieced together a solid showing this week and appeared to have broken free of its falling wedge. For now, $378 is the upper end of the range. But what may be more critical is that the relative strength is breaking free of its downtrend and that may be the essential aspect from NFLXWealth Strength IndexNFLX is Extremely Down and trending Down this week.
I’d be careful with AMD the week of June 24 because the long term downtrend is breaking on the RSI. Meanwhile, the uptrend on the RSI is now breaking too. That means AMD may see $25.70 in the future.
Roku is falling out of its rising wedge, and I think that means the stock is starting its decline. I’m not saying the stock falls to zero, just $94. We can see the RSI has now turned lower too.
Beyond Meat (BYND)
Beyond Meat fell below $154, and that means $124 is next.
Tesla is still struggling at the downtrend, which has me concerned that TSLAWealth Strength IndexTSLA is Flat and trending Down may head back to $205. I’m on the fence now. We need some positive news to push the stock over resistance.
Have a good Saturday.
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