The major market averages looked to kick off the week with more strong gains early Tuesday and as FANG stock Amazon.com (AMZN) charged higher in the stock market today. The tech-heavy Nasdaq rose 0.8%, while the S&P 500 and Dow Jones industrial average moved up 0.7% and 1%, respectively.
Among the Dow Jones industrials, IBM (IBM) traded about 1% higher in early trade after the company announced a blockchain joint venture with Danish shipping company Maersk. The stock is forming a cup-shaped base with a 182.89 potential entry.
Elsewhere in the Dow, Apple (AAPL) looked to extend its win streak to three trading sessions with a 1% gain. The stock is still in buy range from a 176.34 flat-base entry, but the stock’s relative strength line is nowhere near a new high.
On the downside, General Electric (GE) sold off over 3% after the company said it would take a $6.2 billion charge on its legacy reinsurance business. Shares are over 40% off their 52-week high.
FANG stock Amazon rose 1.6% to 1,326 in early trade Thursday after BMO Capital Markets raised its price target from 1,200 to 1,600 — a 33% increase and a 23% premium to Friday’s closing price. Its price target is the highest 12-month forecast on the Street. The stock is up for a tenth consecutive day and about 10% from a recent 1,213.51 flat-base entry.
Meanwhile, fellow FANGs Netflix (NFLX) and Facebook (FB) advanced 1.1% and 0.5% Tuesday. The video streaming firm is up about 10% from a 204.48 flat-base buy point, while Facebook was recovering a portion of Friday’s heavy losses after the social media giant announced changes to its News Feed.
Among companies reporting earnings, major bank Citigroup (C) rose almost 1%, as shares broke out above a 78.02 flat-base entry. The investment bank announced strong Q4 results early Tuesday. Shares also closed just above a previous 76.24 flat-base buy point Friday, but that breakout didn’t lead to any sustained gains. A potential flaw is the stock’s relative strength line, which is not confirming the breakout’s strength. Ideally, it should hit a new high on the breakout day or shortly thereafter.
Inside the IBD 50, Alibaba (BABA) advanced about 1.5%, as the stock tried to reclaim a 191.85 cup-shaped base buy point. The Chinese leader broke out tepidly last week and has yet to close above the entry.
Elsewhere, Atlassian (TEAM) was breaking out above a 53.55 buy point in a cup-shaped base, as shares surged over 4% to new highs. Volume was tracking over 200% above average in early trade. Again, the stock’s relative strength line could be a potential problem, but it is approaching its former levels.
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