EarningsBeats.com Digest for January 5, 2022
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Join Tom Bowley for a briefing on market activity on Mondays and Wednesdays from 9-9:30 am EST before the opening bell. Click here to listen live or visit our YouTube page later today to view the recorded session.
Join Us For Saturday's Event...
Market Vision 2022
Saturday, January 8th at 8:45am ET
Join key experts as they discuss what they're seeing as we head into 2022. Spoiler alert: it's looking choppy. But we're prepared and we'll tell you how.
This event is FREE to all members of EarningsBeats, including free 30-day trial members. To learn more about the event and reserve your seat, click below. The session will be recorded for those unable to attend live.
Beware Reversals at Critical Resistance Levels
I've been extremely bullish for a long time and I still see higher prices ahead. However, I'm seeing more and more signs that suggest the short- to intermediate-term could be very dicey. Therefore, pay close attention to any downtrending stocks that bounce to key price, trendline, and/or moving average resistance. They can be
opportunities to exit weak stocks. As an example, check out the failure on Walt Disney (DIS) on Tuesday:
DIS jumped approximately 10% over the last month as more and more value-oriented and re-opening stocks regained leadership roles. But there was a problem on Tuesday as DIS was making a breakout above its 50-day SMA on an intraday basis. After moving above 160 just after the opening bell, the bears came out in droves. DIS dropped all day long and finished at 155.73, back below the 50-day SMA, currently at 157.41. It's not easy to see on
the above chart, but a bearish engulfing (reversing) candlestick printed as well. It would seem likely at this point for DIS to fall back, at a minimum, to test its rising 20-day EMA, which is at 153.51. Should that key moving average fail to provide support, there's an increased risk that DIS will fall back to test its early-December low near 142.
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Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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