The Big 3: QCOM, SKHY, KLAC

get your podcasts. Welcome back to trading 360. I'm Marley Kayden. It's time for the big three. We've got three stocks three charts and three trades for you. Rick Duquette will take us through the charts here to take us through the trades today. Charles Moon stock strategist over at Prosper Trading Academy. Charles Hope you had a really nice long weekend here. We're kicking off a short trading week. So how are you looking at the markets. I mean we just saw the Nasdaq turn around. Actually we're a little higher on the session. But the other three major averages lower as we wait for inflation data later this week. Yeah. You know the AI plays are really taking hold today. AMD is a strong performer. And you know we're seeing the memory plays the optic plays also working a lot higher. It's a great it's a great sign to see because you know we haven't seen much demand in this sector. Certainly as the markets go up we'll see demand. But generally speaking when the markets start working lower, these stocks are certainly getting hit to the downside. I really love the potential in the breakouts that we're seeing. And you know, the whole segment itself is getting really, really healthy. Nvidia just on Friday was looking to test their all time highs. So you know this is a positive sign in my opinion. If they could sustain any of this momentum for the near term and it's going to be really, really good at least for the Nasdaq for now. All right. Well let's talk about why it's on the Nasdaq and is moving higher today. Qualcomm having a really nice boost after announcing its expanded partnership with Amazon. How are you looking at Qualcomm right now. Yeah this news is really solid. I love that it's retraced a bit and it's actually balancing. I want to see them hold 175 as a new floor. Because if they do I think this upsides at least 200 possibly 220 in a very short period of time. We've seen Qualcomm be a strong breakout play. So if they're holding 175 now in this market gets a little boost this week. I'm looking at the 918185 strike calls. I love them for 450 or lower. Now I want to take out a little bit of risk. So the stops at around 75%. But I believe they make this move. It's easily going to be knocking on the door of 200%. Plus if the actual breakout occurs. So a lot of dynamics, but holding this range, there's a lot of upside with not much technical obstruction. This is one of those breakout plays you want to keep a close eye on here. All right Rick. So things that stood out to me there that 175 floor which we're just above right now. Are you seeing a similar level potentially as support. And then are you also seeing little technical resistance in terms of a potential breakout? I think that there is indeed not very much to stop a move to the upside that I can see right now to, you know, kind of reiterate what we're seeing here with some some visuals. This is the breakout from our old highs that we saw recently. We had this wedge type shape here, our two boundary lines converging toward each other. Now we are poised to potentially cross above this small relative high that we saw here near about 179. So a break above that area would be a notable foothold for the bulls to establish here. The next potential stop would be another relative high around 196. And then also here a high point after a gap to the downside near about 220 to the downside. We had a repeated set of lows here during our rangebound activity around 155 or so. If we were to look at our moving averages next, we can see that the picture for these particular indicators is also one of potential breakout. Here we have all four of our exponential moving averages that we follow clustered fairly closely together between about 166 to 172 or so. So price pushing above all of them in one, you know, not quite one fell swoop, but almost that like in very rapid succession is a bullish signal here. So look for this area now to be supportive. Our 63 day EMA is the highest one coming in just above 172. So look for that to hold on there. RSI is also cooperating with the bulls. We are making new relative highs. We are above the 50 mid line here. So this is what you would want to see so far. If you are bullish shaping up with this momentum indicator. Our volume profile study here shows that we are on the verge of crossing out of a more heavily traded area into a more lightly traded area. You can see our node here. About 160 to 180 contains our point of control here near about 168 or so. So the next stop in terms of heavy trading activity would be up here near about 198 to 208 or so. So again not really too terribly much looking like it's standing in the way of an upside move. If it does start to take a take some hold here. All right. Well it's got some hold this morning. We're up 4.75% at 17681. Your next one. I'm really looking forward to hearing Charles because you've got SK Hynix in the mix for the big three today. They're only about 2.5% off of all time highs here. So how would you approach SK Hynix. Yeah and that's the key factor here because this one's a little trickier being at those levels where we tend to see, you know, kind of shorter term traders look to take profits. But one of the things that I love, especially about IPOs that have a lot of hype, a lot of interest, is that when they break that IPO peak high, they tend to be pretty good breakout plays. So right now I would take this play in anticipation of that breakout. But if it does reject you know traders may have to scramble a bit. I'm looking at the 918 200 strike calls at $5 or lower. This one I would probably play with a little tighter stop at around 50%. Now the breakout could be absolute, absolutely nuts. That's exactly what I'm looking for in these situations, that there could be just massive range extension, immediate rallying to take place, you know, pushing through not only 200, but making that ten, 20% jump, becoming more like micron within the segment as opposed to being more like SK Hynix. So that would be kind of that anticipation. We're getting really close to that 195 price. This is a name you have to keep on your radar. All right. SK Hynix having a really nice jump today. We're up 7% so far on the session. So Rick obviously with its recent IPO, we don't have as much data to work off of here. But what are you seeing in the technicals. Yes exactly. So this is what we do have so far to look at here. And you know to be to be sure to it doesn't seem like this whole memory crunch has gone away. So now we're seeing a big push above 178, a level that stood out to me because it represented highs from here and here and here roughly. So now we are approaching 194 80, which was our post IPO high here. Now at about 189 20 or so. So we still have an upward sloping trend line off of those lows near one 2480 to consider. Here some other relative lows that could come back into focus if the move upward does dissipate. A low here near about 151 and a gap here near about 142. So to think about our RSI study. So remember we need 14 days of activity in order to get a reading on the RSI. Here we are above the 50 midline. We are approaching the overbought area. So if we do cross above 70 that would be more of a bullish confirmatory signal here, especially if price does start to break out above those initial highs. So kind of like our last chart too. We had a situation where our moving averages were consolidating quite closely together. Now we are a bit later in the stages of the breakout here. Friday was quite a strong session here for the Bulls. So now our five day EMA in dark blue comes in just below 175. We have the other three exponential moving averages and confluence between about 161 to 165 or so. Finally, when we do think about our volume profile, most of the trading activity is pretty obvious here between about 154 to the to the lower end and 169 to the the upper area here, our point of control right here, our thick red line around 162. So that's the heaviest trading area of all on our relatively short term chart here. All right. Right now we've got SK Hynix at 18909. With that almost 7% move to the upside this morning. Your last pick here is another strong performer on the year. We've got KLA Corp. also bucking the broader market trend moving higher today up more than 55% year to date. Charles. So how would you approach KLA Corp? Yeah, this one is pretty similar to a lot of the stocks that we're seeing, where it's starting to break free from these short term technical levels and has the ability of moving. Now, this one is a little bit trickier because sometimes they could really run very strongly with the entire AI segment. Sometimes they could kind of deviate and be weak and stand out strong on their own. I believe this is a really underrated name and underrated play. Not enough people are looking at it, especially since they did their stock split. But with the ASML news, this could certainly be a booster for, you know, names like KLAC, a MAT and others. So I like the 1918 strike. I'm sorry, the 918 contract at the 194 strike. Now, this is important because for me, one of the important the primary dynamics is that this stock remains above 187, which they're holding on to today. And so I want to buy those 194 strikes for $5.80 or lower with a stop at around 40%. I don't think we need to have nearly as big of a stop as the others, because if it breaks down, it's it's possibly going to get trapped up. Now, I don't think the upside target is going to be that significant either. I do think that the upside is only to around $200, at least for the time being, and that'll put us close to around 100% gains. Now, if it creeps above $200, that's certainly where there could be a little bit more of a frothy breakout where it could push towards around 225. But, you know, we got to obviously get above $200 first. So this one's a really kind of in and out type of play targeting what I would say, low hanging fruit that continue to hold this key support level. I do think that this name does have to be on traders radars right now. All right. On the radar. It's certainly moving higher too as the markets are moving lower. We're at 18923. But Rick when we look at the technicals set up here, very different chart from our last two that we looked at. What are you seeing here. Yes to be sure. And the area near 200 probably is something many traders would have their eye on. It represents this very small gap that we saw. So the gap opened at about 202. The high after the gap was more around 200. So that could be a notable area to watch out for. But as we, as you said, kind of an unusual chart here. We had this very strong surge to the upside, culminating with the highs of 307 37. But we were treated very quickly then as well. Here, however, what stands out is that this area here near 169, this old high, was a fairly consistent, supportive area. So we've just seen a bounce off of that point here. And we are now finding ourselves as well, breaking above this downward sloping trend line that we saw in the shorter term here, beginning with these highs near 215. So an interesting setup here for a, if you are looking for a further breakout potential. So now to assess our moving averages. In this case we are kind of in the midst of of several of them. Here we have our 63 day quarterly EMA and gold to the upside near about 19657. We also have our teal 21 day EMA representing one month near about 186 20 at this point. So those are the two short term kind of bookends that we have here in regard to our moving averages. RSI also mirroring our price activity and that we are breaking out above a downward sloping red trend line. We are also just a hair above the 50 mid line as well. So that would be more of a bullish scenario here to have those two breakouts occurring in very quick succession. So our volume profile in this case we have a pretty clear node right here that we are starting to push above between about 174 to 187. A smaller pocket of activity here near about 210 to 220. But the bulk of our trading activity was down here in 140 to 156, encompassing our point of control near about 145. And analysts pretty much overwhelmingly bullish on this one. We're 65% in the buy camp, no sell ratings on KLA Corp, with an average price target of 23377. So seeing significant upside there as well. Charles, really appreciate you joining us for big three and