Transcription
Hi, this is Kri Artech with Wicked Stocks, bringing you updates on recent stock picks. I did record this video on Friday, no, uh, Friday, March 14th, 2024, and in it I cover uh, Taiwan Semiconductor, Palantir, Home Depot, Zillow Group, and Oracle.
Let's move on to the first one: Semiconductor. We're certainly slipping below uh, longer-term channel support, and that is a 2-year channel bottom uh, at 173.66. We're presently trading above it as I speak. If we close at or above 173.66, if you're long, you can stay long uh, because we are not in a sell signal unless we close below it by a 1% margin. So, holding 173.66 will keep 203.10 in reach over the next 3 to 5 weeks or so, dropping 3.32 a week. And yes, over the next 3 to 5 months or so, the 239.76 channel top is in reach. It becomes a clear-cut objective, 239.76, if we were then to close uh, some week coming up above the 203.10 descending channel top, and then we have a meaningful buy signal uh, uh, after having tested long-term support at 173.66.
Now, if we close below 173.66 by a 1% margin, that's 171.92. Today, Friday, March 14th, I see no good reason to be long Taiwan Semiconductor. Should you be short? Sure, you can be short. I just don't have an objective lined up. Uh, I do see a continued price decay though uh, through the second quarter.
On to Palantir Technologies. Now, this is a wild swinging, high-volatility stock. I don't need to tell you that. I do see the key reversal high that was put out a month ago, that February high uh, and the fact that we've been falling uh, you know, putting out new lows this week, no exception uh, means that this stock is still uh, very susceptible to falling through the downside. Now, we are up on the week itself from last Friday's settlement, but I see the 87.75 speed line as your resistance uh, through April, and below which we can fall away back into that 46.90 to 51.57 region over the next several months. That could be over the next 3 to 5 weeks, but right now we're kind of—looks to me like there's a consolidative effort that's playing out right now in the mid-80s. I don't want to make a strong assumption about that. I will say that if we close today, Friday, March 14th, above 87.75, then I'm off the sell signal. I'm off going short, but honestly uh, I'm then not interested in playing the long side. I'll be quite frank. I do see this a key reversal high. You can see that in February we put out a new all-time high. We came cascading south later that week, closing clearly below the previous week's low. That is oftentimes an indication of a long-term high in and of itself uh, and so what we have now is a rising 1/3 speed line projected off that D22 low uh, since closing below it a couple of weeks ago. We've yet to close back above it. I think that's your ceiling of resistance, and if you're interested in playing the short side in Palantir, you can um, but carefully uh, make sure you put in your stop-loss if you sell 87.75. This stock has a—it's a wild swinging uh, dynamic right now, and uh, I wouldn't want to see you clamoring to cover a short position uh, if we push above 100 or 110. You shouldn't have to ride it that far if you sell 87.75. Uh, I would throw in a 1% margin on that, 2% at the most, as your stop loss uh, and uh, and leave it, let it, let it play out. The 46.90 to 51.57 area, I'm still calling a 2 to 3-month target or sooner.
On to Home Depot. Uh, we fell uh, obviously this week, closing below a key channel support. There are two of them here uh, 359.26 rising longer term that goes back about a year and a half, and 365.60 is dropping on a weekly basis and that goes back about 3 months. And the holding below—and I'm assuming we will close below 359.26 to 365.60 this week—no good reason to be long the Home Depot. Uh, it is now indicating 281.10, and this could be within 2 to 3 months. With a sustained selloff, this could take into later year um, and um, you know, there's going to be little support levels on the way down, but bottom line uh, no good reason to own Home Depot anymore. If you want to play the short side, I can just look at this chart and say you can either sell the stock outright if we get an upward retracement into the um, you know, basically the low 360s over the next week or two, or you could reach for 280, 285 strike out-of-the-money puts that don't expire. I would go a year out on that expiration uh, and that is the play right now. If we close back above 365.60, that merely neutralizes a long-term sell signal uh, you know, and I would not expect a long-term bullish continuation. We'll update you on that if it were to occur.
On to Zillow Group. We settled above that channel top at 72.21 back in November, and we got two 20% pops to the upside. An initial 20% rally, then we fell back to 72.21 channel support, and then we rallied again a month later about 20%. Now we are below not only the channel top at 72.21, but also a newly, more recently formed channel bottom at 70.92. Now we're trading inside that pocket right now, and so what to do? I will say that if we close today below 70.92, that is a sell signal uh, I think—I don't show it here—but into the low to mid-50s over the next several months. But until then uh, this is an area that you can stay long if you're long. Now, if we close inside that pocket so to speak today, March 14th, between 70.92 and 72.21, you can do with it as you may. I don't see a sell signal unless we close today below 70.92. Until then, you can hold a long position. We could rally from here uh, but there doesn't seem to be the impetus for that exactly at this point in time.
On to, and finally, Oracle Corporation. Oracle uh, looks like it very well may close below uh, a 1 and 1/2-year channel bottom today, this week, at 152 even, rising 92 cents a week for the week of Monday, March 10th. And if we close below 152 even, and if it's by a full 1% margin of 146.49 or lower, that satisfies the requirements for a sell signal, and uh, uh, I would I would say uh, uh, no good reason to be long Oracle if we close today below 152 even, at or below 146.49, 1% violation threshold. We should see 127.54 pretty quickly with present volatility. That could be within 2 to 3 weeks, and I think even lower into the 90s, into the lower 90s. If you look at this chart, we don't have it mapped out uh, but you can see kind of this long drawn-out head and shoulders development that begins with that June 23rd high. That is the top of the left shoulder. Then the head, of course, is the December 24th high. If we close below uh, the 152 even channel bottom today by the required 1% margin, not only anticipating the top of that left shoulder at 127.54 in the weeks to come, but I think the bottom of that left shoulder is likely that where we continue, and I don't have the exact number, but it's like the mid to upper 90s would be the objective. So, if you want to play the short side in Oracle with a settlement today at or below 146.49, uh, be my guest. Uh, you might reach for near-term swing traders uh, 128 strike out-of-the-money puts. Don't expire for at least a couple of months, or you could reach for say 95 strike out-of-the-money puts that don't expire for at least 6 months. That would probably be a 2 to 3-month play perhaps. If we close below 152 even by a 1% margin. Now, if we close um, inside that 1% zone, in other words, above 146.49 but below 152 even, and your long, you know, you could stay long. Um, it's not a real clear sell signal uh, so there's that. You might be stopped out already if you were bottom-picking that area, so it's a bit of a moot point. But I will say that if we close today above 152 even, and it's possible uh, that that holds, believe it or not, that uh, 2-year or 1 and 1/2-year channel bottom and should at least yield the 179.11 descending channel top, newly formed channel top based in part on this week's low. That could be a 3 to 5-week play to the upside. That's a nice play in and of itself if we close uh, today above 152 even. Until then, we may be setting up for a longer-term sell signal in Oracle.
I think that pretty much covers it. I'm going to leave it at that for this particular set of updates from WickedSt.com. I'll be back next week with another set, and you have a great weekend.