Win-Picks May 2019

Lets start this one off by revisiting the Win-Picks from March 2019. They performed awesome! ADM, SMG, DIS and BKNG all provided gains. SQ fell from its resistance as noted in the post. It did indeed pull back and it is now at the optimal entry point I pointed out. April has passed and its time to provide my new picks for this month. I have three this time around. T-mobile (TMUS), Cognizant Tech (CTSH), and Tesla Motors (TSLA).

T-mobile has been in a steady small range above 70. 70 was the former high the stock made. What stock prices tend to do before they move higher is they create a new high and then pull back to test its old high. The price did pull back and tested 70 and stayed above. This made it confirm its new support level. The price is now likely to make a move to 80. It is currently at around 74 dollars. The breakout has potential to reach 100. 

Cognizant Tech recently suffered from a fall after its earnings report. It is now near 60. Support at this level is being tested. This is where it broke out from when it made its run to new highs. This is a great entry. The price will have to continue to prove itself is my view. It is oversold and it can make a move soon. It doesn’t hurt that they give an ok dividend at 20 cents a share. The support in the 60 area should hold up.

Tesla Motors is one of the most hated stocks on the planet. Firms continue to doubt its ability to produce. With so many institutions against it, how can this go wrong? It has hit new lows and something happened. A candle formation of a piercing patter showed up with enormous volume behind it. The increase in volume gives me a clue that the price has finally reached its low and it is looking to reverse. It is now sitting near 250. This is a point where the stock will prove itself to go higher or back down to test its lows again. I think it will continue to move higher. The chart shows this can make a bounce.