Wall Street: correction danger in sight? The stocks still buy


Below is the interview with Alessandro Cocco, Chief Executive Officer of Unicron Associates, to whom we asked questions about American stock indices and some US stocks.

On Wall Street yesterday the three main indices rose again after another week on the rise. What are the expectations for the next sessions?

Last week both the American indices, but even more the European ones, fired upwards and my idea is that now the attention should be paid in particular to the Nasdaq Composite.

This index in fact, after Friday, also yesterday updated its historical highs again, with top in the intraday at 9,927 points.

With a break of these levels, there will be a bullish following for the Nasdaq Composite which otherwise could also face profit taking.

A session in red could give us a small alarm bell about a potential bearish divergence.

In the event of descents below 9,800 points, for the Nasdaq Composite it will be necessary to carefully consider the 9,600 point threshold.

This could be the key support that would trigger the bearish divergence of which I spoke earlier and in case of confirmations in this sense we would have a target in the 9,200 area for the Nasdaq Composite.

On the contrary, a continuation of the rise in progress will target the area of ​​10,200.

The S & P500 will have to deal immediately with the obstacle of 3,257 points, to aim following the closing of the gap on February 24 around 3,339 points, the last stage before a landing on the historical highs just below 3,400.

As long as the S & P500 remains above 3,100 points, there will be an opportunity to continue climbing and breaking historic highs.

Below area 3.100 the index will find first support in the psychological threshold of 3.000 points which was a resistance up to October last year.

Similar is the speech for the Dow Jones who finds the 28,226 points as the next key resistance, after which he can extend his pace to 29,000.

These are two target levels that could be reached, as long as the Dow Jones remains above 27,000 points.

In particular, a breach of 26,800 points could bring us around 26,000, the keeping of which will be crucial to avoid bearish insights towards an area between 24,680 and 25,000 points.

The view on Wall Street is currently bullish, paying attention to the Nasdaq and in particular to a possible retracement of 9,600 points.

A drop below this threshold would change the scenario in progress, transforming it from positive to negative.

What can you tell us about Boeing’s strong recovery in the last few sessions?

Boeing surged past Friday’s highs just below $ 219, which further strengthened the recovery.

It seems that the aviation sector is showing signs of recovery and if the stock indices continue to rise, Boeing will be able to extend the pace even up to $ 300.

On the downside, pay attention to the lows of last Friday at $ 197.36, because in case of violation of this threshold, Boeing could return to the area of ​​$ 160.

American Airlines is also experiencing strong rebounds. What strategies can you suggest to us?

American Airlines touched an intraday high at $ 22.8 last Friday and now we consider Thursday’s close at $ 16.72 as support.

Below this level, the stock could slide towards $ 12 and therefore risk returning to the starting point.

On the upside, as the first target we now indicate the highs of last Friday at 22.8 dollars, beyond which American Airlines will be able to point to 24 dollars before and to 26 dollars afterwards.

Are there any other titles you want to report on Wall Street?

I’m following JP Morgan who rose again after Friday’s rally yesterday and now has key support at $ 104.

With the breaking of this threshold, the stock will risk falling towards 96 dollars, but with the holding of 110 dollars JP Morgan will be able to aim higher.

The next hurdle is at $ 115.77, with a subsequent target of $ 122.24, violated which there will be room for $ 130 area.

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