Stocks Are Falling Again As Critical Levels Of Support Approach
Michael Kramer | Jan 30, 2020 08:15AM ET
Stocks are pointing to a lower open on concerns of the coronavirus again. All of the major indexes were down in Asia with the Nikkei and Kospi down around 1.7%, while HK fell 2.6%. Meanwhile, Europe is lower as well.
h3 S&P 500 (SPY)/h3S&P 500 futures are down about 20 points back to around 3251. At this point, it feels as if maybe a retest of the declines on Monday, so this could be considered a significant level to watch for the markets. A further drop below 3230 on the futures could lead to a sharper decline, perhaps to around 3,200. Again, we don’t want to see the index close at these levels because it would allow the index to finish below the trend line.
Oil finds itself in a terrible spot, sitting on support around $52, with a break of this price level could send the commodity lower to $42.
Facebook (NASDAQ:FB) is getting crushed today, falling by 7.5% to $206. This is an essential region of support for Facebook. Support for the stock is around $203, and a decline below $203 likely gets the stock moving lower to about $191.
Starbucks (NASDAQ:SBUX) is falling as it should since a significant portion of Starbuck’s growth story is based on China. The stock has found some support around $85.75, with the next level of support around $83.50.
Get The News You Want
Advanced Micro Devices (NASDAQ:AMD) is testing support again around $46.80, and this is an essential level for the stock to hold. If not, the stock is probably heading even lower to $43. Not what I was expecting.
Shop failed for a third time at $477; meanwhile, volume levels are starting to decline, signaling that buyers may be thinning out. However, the trendline is moving higher, so I’m going to say support for the stock now comes around $425 to $435 region.
Western Digital (NASDAQ:WDC) report results this afternoon, and the stock has been holding on to support around $65.75. Remember, we were seeing the call buying for the March 20 expiration date at the $75 strike price. So we will find out if these options traders are just as good as the Intel (NASDAQ:INTC), Square (NYSE:SQ), and GE traders, or if they resemble the Facebook (NASDAQ:FB) and AMD crowd. Free story – Western Digital Is Nearing A Significant Break-Out
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.