Charts To Trade: HDP, ISRG, FTNT, BOX, WIX

This is a quick post on five charts that caught my eye on Tuesday, May 19th. All charts annotated at and downloaded from FreeStockCharts.com.

Hortonworks, Inc. (HDP) has struggled to make a good post-IPO impression. The first earnings report underwhelmed and led to a fresh all-time low. The last earnings report was initially well-received and then faded to a slightly negative close. However, on Tuesday, May 19th, HDP made a tremendous 15% surge that not only resumes momentum for the stock but also represents a breakout. All it took was a Barclays upgrade to outperform and a price target of $30.

Hortonworks, Inc. (HDP) makes a fresh breakout attempt after an ominous post-earnings fade

 

Hortonworks, Inc. (HDP) makes a fresh breakout attempt after an ominous post-earnings fade

Intuitive Surgical, Inc. (ISRG) is the stock I want to love. The last earnings report was uninspiring and traders and investors bailed fast. The selling finally ended around 200-day moving average (DMA) support. Now, a Bollinger Band (BB) squeeze is developing. I would love to anticipate a breakout here. However, given the poor post-earnings performance, I will instead follow the break out of the BB squeeze in whatever direction it moves.

Intuitive Surgical, Inc. (ISRG) is stabilizing post-earnings with a critical retest of 200DMA support

 

Intuitive Surgical, Inc. (ISRG) is stabilizing post-earnings with a critical retest of 200DMA support

Fortinet Inc. (FTNT) is another BB squeeze candidate. Its technical profile is much better than ISRG here. The stock gapped up nicely post-earnings and has consolidated ever since. This setup makes FTNT look like a coiled spring – ready to break out and resume the very strong upward trend in the stock.

Fortinet Inc. (FTNT) looks ready to extend its run-up further

 

Fortinet Inc. (FTNT) looks ready to extend its run-up further

Ever since Jim Cramer hyped up the IPO for Box, Inc. (BOX), I have been wary of betting this is eventually a single digit stock. I now have put options after the stock has slowly but surely sagged despite periodic hype fests from Cramer gushing over the stock. It is rarely a good sign when an IPO comes right out the box, so to speak, with a very poor earnings report, especially one that immediately retests post-IPO lows. The chart below shows a pattern of lower highs. It seems only a matter of time before a lower low occurs.

Box, Inc. (BOX) looks ready to breakdown as it hugs all-time lows

 

Box, Inc. (BOX) looks ready to breakdown as it hugs all-time lows

Finally, Wix.xom (WIX) is the stock that has really called me to return. I was hoping for a pullback from a strong response to the last earnings report. The current breakout makes such a pullback unlikely. So, instead, I will have to buy back into this one on momentum. Note the persistence of strong (high volume) buying since earnings.

Wix.com (WIX) makes a fresh breakout

 

Wix.com (WIX) makes a fresh breakout

Be careful out there!

Full disclosure: long BOX put options

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Carol W 9 years ago Contributor's comment

I bought Hortonworks due to the high interest from the hedgies..picked it instead of LC. FTNT is also a stock I own due more to fundamentals but glad to see its TA rocks. Never liked BOX- Levie reminds me too much of beavis ( or was it butthead?) anyway..zero interest. too profligate with the moolah..reminds me of globe.com ( and that's not good!) WIX is now on watch! good catch..thanks my dear..cheers!

Dr. Duru 9 years ago Contributor's comment

Boy how times have changed since THIS post!!!