Mind Medicine
MindMed (MNMD) was on the move again today, looking for another 50% gain according to my chart.
If you don’t know about this stock, you should take a few minutes to get familiar with it by checking out my article from a month ago…
Shares of this clinical stage biopharmaceutical company are traded 16% higher today on an SEC filing that indicates the sale of shares by three “selling shareholders” through an agreement dated March 7, 2024.
In my opinion, that’s just a catalyst for the move, the accelerant behind the move is the price of MNMD shares breaking through $10.
We always talk about the properties associated with moves above and below key psychological levels like $10, $100 or $1,000.
MindMed’s surge above $10 brings it to a new ecosphere for stock prices that gain attention - and in this stock’s case, that’s buying interest.
The shares’ next target should land eyes at the $12 level followed by $15, where I expect the technical charts to signal another overbought situation that will result in another consolidation similar to the one we’ve seen at $10 for the last month.
As always, I disclose the fact that I am a shareholder in both the company’s stock and long-term call options.
Ulta
Ulta (ULTA) shares are the worst performing stock in the S&P 500 today after the company dropped a warning on Wall Street’s doorstep this morning.
The company announced a disappointing outlook for their earnings during a conference detailing that it expects its first quarter comps to be towards the lower end of its guidance for the first half of the year.
That puts the beauty giant at single-digit growth.
The announcement follows another leading brand’s earnings miss.
On Monday, PVH Corp. (PVH) – owner of Calvin Clein, Tommy Hilfiger, and other luxury brands – announced lowered expectations after beating their quarterly earnings targets.
The move is part of a reality check for the “designer” brands, including home improvement retailer RH.
Shares of ULTA are breaking below their 200-day moving average AND their 20-month moving average. The last is more important for the next six months as it signals that ULTA is moving into a long-term bear market trend.
Target a move to the October lows near $350 as the analysts start dropping their recommendations and price targets over the next few weeks.
Intel
Shares of Intel (INTC) are trading lower by 7% this afternoon, following the company’s release of a new financial reporting structure detailing the transition to a foundry operating model.
The company’s management expects that the Intel Foundry’s operating losses should peak in 2024. The news displays the drawn-out challenges of pivoting the company’s vision. Think of this like General Electric (GE) turning itself around… it takes a long time.
For technicians like me, the stock is hitting a critical mass price for the intermediate-term outlook. The stock’s 50-day moving average is currently in a downtrend, indicating a bearish outlook for the next four to six weeks. Today’s price action breaks the stock below that key trendline, another bearish mark against the intermediate-term outlook.
The longer-term outlook still holds a bullish tone, as INTC shares trade above their 20-month moving average. That trendline should provide support for the stock at $35.
Summary, expect some price pressure over the next four to six weeks with a long-term buying opportunity at $35.
About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.