Internet cloud and security company F5 (FFIV) shares just finished a healthy 10% correction and are now primed to move back to recent highs. The technology company rallied more than 15% after its earnings on July 29 as a strong performance and raised earnings guidance targets.
Shares of F5 are trading above strong technical support from the stock’s 50- and 200-day moving average, both trading in bullish trends at $175.
In addition, F5 shares are trading in a relatively new long-term bullish trend. The stock broke above its 20-month moving average in November of 2023.
American Electric Power (AEP) and other Utility stocks are benefiting from three bullish drivers.
First, investors are looking for lower volatility “safe” trades as fears of a possible recession are causing investors to look for alternatives to higher volatility technology stocks.
Second, the inevitable lowering of interest rates by the Fed has income investors foraging for high dividend yield stocks, something the utility sector is well known for.
Finally, AEP has been making headlines with their focus on securing grid resources to provide power for data centers, thus landing it in the “growth stock” category.
AEP shares recently broke through the psychologically significant $100 price level and immediately saw sellers take control of the stock, dropping the stock to $97.50. That quick pullback is an opportunity for investors as the AEP shares are now likely to target a $120 price level before year-end.
Hanes Brands (HBI) suffered through long-term two bear markets since 2015 that stripped 87% of the company’s value, but the stock’s trend turned bullish in January.
Hanes and other “basic” clothing companies often draw buyers as the economy slows. The reason is simple, consumers are beginning to cut back on their spending, looking for more value in the retail sector. That’s where Hanes Brands operates.
The stock broke above the $5 level in March, followed by a retest of it’s 200-day moving average at $4.50. Now, shares are on their way to a target price of $7.50 – a 20% move from their current price – as the company’s earnings and revenue continue their positive trend.
Think necessities, that’s what consumers are doing right now. There’s nothing more necessary than the cell phones that each of us are tethered to each day.
AT&T (T) shares have crossed into a bullish trend as investors are looking for consumer product companies that pay nice dividends. With a yield of 5.7% and a nice short- and long-term price trend, AT%T fits the bill.
Shares are trading just below the $20 mark. A move above that price will draw more buyers with a target of $25.
Cisco System’s (CSCO) shares broke into a long-term bear market trend in May, and the stock’s price is currently sitting on a “trap door trigger”
Shares have been on the decline as revenue and earnings have failed to muster buying interest in the stock. As a result, the stock moved below its 20-month moving average in May.
The stock now sits just above $45, a price that holds certain consequences if broken.
The last two moves below $45 drew increased selling pressure resulting in 19% and 30% declines in the stock.
Investors should target a price of $40 within 4-6 weeks of a move below $45.
