NEW YORK (TheStreet) -- The flash crash of Aug. 24 pushed shares of Apple (AAPL - Get Report) , Amazon (AMZN -Get Report), Facebook (FB - Get Report), Google (GOOGL - Get Report), Netflix (NFLX - Get Report) , Solar City(SCTY) and Tesla (TSLA) down to levels that provided buying opportunities for both short-term traders and swing traders.
A short-term trader thinks like a day trader, but will allow in-the-money trades to ride day to day. They tend to employ sell stops to minimize losses and look to momentum. They think that a strong stock will get stronger and a weak stock will get weaker.
A swing trader thinks longer term in what can be described as a rolling five-week horizon. They think where to buy on weakness and where to sell on strength.
The seven stocks profiled here satisfy both trading styles. All seven stocks are in correction territory -- 12% or more below their 2014 or 2015 highs. All but one are also more than 10% above their flash-crash lows set on Aug. 24.
Here are the weekly charts for these seven popular stocks and the key levels at which to employ good-till-canceled limit orders to buy on weakness at lower key technical levels and to sell on strength at higher technical levels.
Here's the weekly chart for Apple.
Courtesy of MetaStock Xenith
Apple closed at $107.72 on Tuesday. That was down 2.4% year to date and was 19.9% below the stock's all-time intraday high of $134.54 set on April 28 and 17.1% above its flash-crash low of $92. From its all-time high to the flash-crash low, the stock plunged 31.6%, setting a trading range for both short-term and swing traders.
The stock is below its 50-day and 200-day simple moving averages of $120.11 and $121.56, respectively, which is a death-cross formation.
Apple has a neutral weekly chart with the stock below its key weekly moving average of $115.70 and above its 200-week simple moving average of $87.00, which was last tested during the week of June 28, 2013, when the average was $55.22. Apple's weekly momentum reading is projected to rise to 26.91 from 22.61 last Friday.
Investors looking to buy Apple should place a good-till-canceled limit order to purchase the stock if it drops to $90.44, which is a key level on technical charts until the end of 2015.
Investors looking to reduce holdings should place a good-till-canceled limit order to sell the stock if it rises to $109.68 and $110.43, which are key levels on technical charts until the end of this week and 2015, respectively.
Here's the weekly chart for Amazon.
Courtesy of MetaStock Xenith
Amazon closed at $496.54 on Tuesday. That was up 60% year to date and 14.5% below the stock's all-time intraday high of $580.57 set on July 24, and was 10.1% above its flash-crash low of $451.00. From is parabolic high to the flash-crash low, the stock plunged 22.3%, setting a trading range for both short-term and swing traders.
Amazon's weekly chart will shift to negative if Friday's close is below the stock's key weekly moving average of $498.21 as its weekly momentum reading is projected to decline to 51.36 from 66.26 last Friday.
Investors looking to buy Amazon should place a good-till-canceled limit order to purchase the stock if it drops to $443.56 and $424.87, which are key levels on technical charts until the end of September and the end of 2015, respectively.
Investors looking to reduce holdings should place a good-till-canceled limit order to sell the stock if it rises to $568.28, which is a key level on technical charts until the end of September.
Here's the weekly chart for Facebook.
Courtesy of MetaStock Xenith
Facebook closed at $87.12 on Tuesday, which was up 11.8% year to date and 12.1% below its all-time intraday high of $99.24 set on July 21. The price was 21.2% above the stock's flash-crash low of $72. From is all-time high to the flash-crash low, the stock plunged 37.8%, setting a trading range for short-term and swing traders.
Facebook has a negative weekly chart with the stock below above its key weekly moving average of $89.79 and with its weekly momentum reading projected to decline to 64.73 from 70.15 last Friday.
Investors looking to buy Facebook should place a good-till-canceled limit order to purchase the stock if it drops to $52.74, which is a key level on technical charts until the end of 2015.
Investors looking to reduce holdings should place a good-till-canceled limit order to sell the stock if it rises to $89.47, which is a key level on technical charts until the end of September.
Here's the weekly chart for Google.
Courtesy of MetaStock Xenith
Google closed at $629.56 on Tuesday. That was up 18.6% year to date and down 11.7% from the stock's all-time intraday high of $713.33 set on July 22, and was 6.1% above its flash-crash low of $593.09. From its parabolic high to its flash-crash low, the stock plunged 16.8%, setting a trading range for short-term and swing traders.
Google has a negative weekly chart with its stock below its key weekly moving average of $638.25 and with its weekly momentum reading projected to decline to 67.74 from 70.57 last Friday. The downside risk is to the 200-week simple moving average of $461.70, which is the reversion to the mean which was last tested at $249.87 during the week of Oct. 7, 2011.
Investors looking to buy Google should place a good-till-canceled limit order to purchase the stock if it drops to $526.68, which is a key level on technical charts until the end of August and the end of 2015, respectively.
Investors looking to reduce holdings should place a good-till-canceled limit order to sell the stock if it rises to $647.30 and $672.02, which are key level on technical charts until the end of 2015.
Here's the weekly chart for Netflix.
Courtesy of MetaStock Xenith
Netflix closed at $105.79 on Tuesday. That was up 116.8% year to date and 18.2% below the stock's all-time intraday high of $129.29 set on August 5, and was 23.7% above its flash-crash low of $85.50. From its parabolic high to its flash-crash low, the stock plunged 33.9%, setting a trading range for short-term and swing traders.
Netflix has a negative weekly chart with the stock below its key weekly moving average of $109.32 and with its weekly momentum reading projected to decline to 68.45 from 75.88 last Friday.
Investors looking to buy Netflix should place a good-till-canceled limit order to purchase the stock if it drops to $96.62, which is a key level on technical charts until the end of September. That level provided a buying opportunity on Aug. 24.
Investors looking to reduce holdings should place a good-till-canceled limit order to sell the stock if it rises to $128.39, which is a key level on technical charts until the end of September.
Here's the weekly chart for Solar City.
Courtesy of MetaStock Xenith
Solar City closed at $46.16 on Tuesday. That was down 13.7% year to date and 47.8% below its all-time intraday high of $88.35 set on Feb. 26, 2014, and was 33.2% above its flash-crash low of $34.65.
Solar City has a neutral weekly chart with the stock below its key weekly moving average of $49.73, but with its weekly momentum reading projected to rise to 25.85 this week from 23.09 last Friday.
Investors looking to buy Solar City should place a good-till-canceled limit order to purchase the stock if it drops to $39.05, which is a key level on technical charts until the end of 2015, which was tested on Aug. 24.
Investors looking to reduce holdings should place a good-till-canceled limit order to sell the stock if it rises to $53.08, which is a key level on technical charts until the end of September.
Here's the weekly chart for Tesla.
Courtesy of MetaStock Xenith
Tesla closed at $238.63 on Tuesday, which was up 7.3% year to date and 18.1% below the stock's all-time intraday high of $291.42 set on Sept. 1, 2014. The price was 22.4% above the stock's flash-crash low of $195.
Tesla has a neutral weekly chart with the stock below its key weekly moving average of $247.49 and with its momentum reading projected to rise to 36.27 this week from 36.14 last Friday.
Investors looking to buy Tesla should place a good-till-canceled limit order to purchase the stock if it drops to $152.07, which is a key level on technical charts until the end of 2015.
Investors looking to reduce holdings should place a good-till-canceled limit order to sell the stock if it rises to $245.39, which is a key level on technical charts until the end of September. That level was tested at Tuesday's high.
By Richard Suttmeier
Source: http://www.thestreet.com/story/13275301/1/how-to-trade-amazon-apple-facebook-and-4-other-popular-stocks.html?kval=dontmiss
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