Talking technicals - November 20th
Hope everyone had a great week. Once again I’m back with another writeup focused on the technicals which means I’m taking off my “investor” hat for the next 60-90 minutes and putting on my “trader” hat. Some of the stocks mentioned below are in my portfolio and others are just on my watchlist. Now that macro is showing signs of improvement (CPI and PPI have probably peaked), I’ll be looking for more day/week trades to compliment my long-term investment portfolio which includes all of the stocks that I discussed last weekend.
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CELH — Celsius (I have a position)
Might as well start with this one since it’s still my biggest position. As I noted last weekend it was important for CELH to push through that VWAP from the ATH which is exactly what it did this week and then on Friday it pulled back to that VWAP and the 10d EMA, bouncing off the 10d EMA and closely nicely above the VWAP and 5d EMA. I think you can still own CELH here as long as we keep closing above that VWAP. If we close below then it might mean CELH wants to go test the 21d EMA which is where I’d add to my position. My CELH position is already large enough where I don’t need to be adding near $100 when I was buying aggressively a couple weeks ago in the $80s.
TSLA — Tesla (I have a position)
As I noted last weekend, TSLA needed to hold the VWAP from the March 2020 lows which is exactly what happened this week. I think you can own TSLA here as long as it keeps closing above this same VWAP. If it breaks down below the VWAP then I’d say there’s a 70% chance TSLA ends up testing the 200w SMA in the low $160s. If you’re a trader then you probably want to sell TSLA below the VWAP. If you’re an investor you probably want to average down into the 200w SMA.
MELI — MercadoLibre (I have a position)
MELI with the failed breakout this week but finding support on pullback at the 200d SMA, I think you can keep holding MELI as long as it stays above the 200d SMA.