1/9/2017 FANG and Apple update

First, let's look at apple: a trader's love or hate. Today Apple broke out the level resistance 118, highest to 119.43 and close at 118.99. Watch this neckline of reverse head and shoulder (following daily chart showed the reverse head and shoulder pattern) 118 as support, if back test it and price hold up, this head shoulder pattern will definitely play out. The upside target is around 130. The weekly chart also showed the top trend line break out. If this break out works out for both of these 2 time frames, the price surge will be enforced.

http://schrts.co/mK7lEX

http://schrts.co/vEHT4y

Second, let's look at Amazon: a frequent pre-ER runner which is hard to chase. The price comes to 800 level resistance and stalled today, but the price hangs in there and does not pull back hard yet. If the pull back indeed happens, the short term MAs confluence at 770 is the support. If price continues to move up, the gap fill around 820 is next target. One very important character of amazon's chart is the bollingar band width. Every time when it contracts to a extremely low level, the next big move is coming (up or down). If you ask me what is my bet, I am betting amazon's price will move up big. Note, this bollingar band expansion move usually will be  could be a $100 move or more.

http://schrts.co/eOheLI

Third, I will check facebook's chart and price action to see what could be new development down the road. Last year's trump rally indeed made some damages on technical side of its chart. It scared lots of investors to flee from "FANG", especially face book by its ugly daily chart. However, I always persuade people to take a look at the long term chart such as monthly chart. Although the price has a ugly close at the end of last year, the price still just sit on monthly EMA 13. It is kind of a trick that market usually put price right around the support so that it makes you feel the price is in danger and ready to fall off cliff soon. That is also a pain trade for most traders and investors. The daily chart still suggests higher price toward the gap fill around 127 by the strong momentum. After gap fill, there are 2 possible cases to be developed:

1. pull back to get support at level 120, then reverse the course to go up
2. break out level 127 until resistance 130 to back test 127 again, get hold, then reverse the course to test top trend line. 

   http://schrts.co/10kATy

http://schrts.co/Sm3uXt