As the stock market attempted to regain its footing following a brutal selloff Friday, Feb. 2, a few major high-profile stocks are nearing critical junctures in price and trajectory, according to analysts from Bank of America Merrill Lynch.
These are the names you need to know and the charts you need to keep in mind as heavy hitters on Wall Street hunker down.
Amazon.com Inc. (AMZN) remains within bullish trends for both absolute and relative pricing, analysts wrote. Amazon shares hit the upside count for the December bullish pennant at $1,475, BofA said, and they could pull back. Analysts said there isn't much support until the $1,200 area.
"The bullish and rising 26/40-week Mas come in at $1,109-$1,066 with the early 2016 uptrend line near $1,020." Amazon stock traded higher 0.74% to $1,440.57 early Monday afternoon.
Apple Inc. (AAPL) is "at risk for a bearish trend change as the chart shows bearish similarities to mid 2015 and late 2012," BofA wrote. "The relative chart has rolled over on a break below the 2016 uptrend line and mid-to-late 2017 chart supports and the absolute price chart is following."
Apple shares recently hit upside counts for early 2017 breakouts in the $169-$177 area, analysts noted. "The break of the uptrend line from late 2016 and the December 2017 higher low near $166-$165 suggests a tactical top for AAPL." The bearish reversal could be confirmed with a close below the 40-week moving average near $160. Apple stock traded higher 0.36% to $161.07 early Monday afternoon.
Caterpillar Inc. (CAT) is bullish for absolute and relative price trends. The stock reached three- and six-year base breakout projections at $167-$172, BofA said. It has now begun a correction within a longer-term bullish trend, supported by rising weekly moving averages.
"The big picture pattern on CAT stays bullish while above the big 3 and 6-year breakout points at $116-111," analysts wrote. Caterpillar stock traded lower 1.05% to $155.84 early Monday afternoon.
General Electric Co. (GE) is a bearish chart based both on absolute and relative price bases. There's no obvious bottoming sign at present either, BofA said. There is "deeper risk" for the stock to fall to $14.55-$13.75, its support levels for the period from 2009-2010.
"Breaking the 2009 relative low vs. the S&P 500 in August 2017 was a longer-term bearish signal on GE," analysts added. GE stock traded lower 2.27% to $15.28 early Monday afternoon.
Microsoft Corp. (MSFT) stock "achieved longer-term upside count for $93 for a 15-16 year big base completed in 2015 through 2016. The chart for Microsoft shares is "bullish buy not buyable given a test of a big chart projection and would potentially become more attractive on a dip." Microsoft stock traded lower 0.24% to $91.56 early Monday afternoon.