Celestica Inc. is a multinational electronics manufacturing services company headquartered in Toronto, Canada
Celestica Inc (CLS) has been constructing a bottoming pattern for the last decade. Last week CLS opened with a gap and surged almost 10%. The neckline of this inverted Head & Shoulders pattern at 13.10 has not yet been broken. Keep a close eye on Celestics, this may be the start of multi year rally.
Celestica Inc beats Street 2Q forecasts
American clothing company Hanesbrands (HBI) has constructed a continuation inverted Head & Shoulder pattern for over four months with the 34.80 level as the resistance level or neckline. Keep a close watch on HBI for a potential stock breakout, as it reports its 2Q earning after market close. A breakout will imply a target of $39.
Here is ZACK’s take on why Hanes might surprise on this earnings season.
This post will be different than the usual breakout posts.
Support and resistance levels represent human emotions through pictures. Support occurs when buying demand is greater than selling pressure, putting a temporary floor below the stock.
Support represents an area where price is likely (but not guaranteed) to stall or reverse. Its critical that you understand the latter sentence. Read it again
Furthermore, the support level becomes more significant every time the stock touches it and reverses direction. Why? Its just psychologically that traders remember that buying at that price was always profitable.
Lets look at a couple of examples..
Occidental Petroleum Corporation (OXY) engages in the acquisition, exploration, and development of oil and gas properties in the United States and internationally. OXY is currently on multi year support levels (70-73) which were tested in 2010, 2011, 2012, 2014 and this year. Buying at these levels provides a low risk entry point.
The next stock is Gold Fields Limited (GFI) which operates as a gold mining company. Again, GFI is currently on multi year support levels between (2.50-3.0) which were tested in 1999, 2000 and the last couple of years.
Make sure you have your stop loss entries in place as Support represents an area where price is likely (but not guaranteed) to stall or reverse.