(By Rich Bieglmeier) Slip sliding away, slip sliding away
You know the nearer your destination, the more you slip sliding away
If the market continues slip sliding away, iStock believes the destination for these three high flyers could be considerably lower.
Amazon.com Inc. (AMZN) broke a few key support lines on Tuesday, indicating the stock price could fall some more. The stock closed below its 50-day average for the first time since April 16, 2012. The second support level to get whacked is the line that connects pivot bottoms. Both the trendline and 50-day breaks are bearish in iStock's view.
Now that AMZN is underwater on two accounts, we can see the price challenging the 200-day average, maybe before the online, retailing giant reports earning on July 23rd.
On Wednesday, salesforce.com, inc (CRM) closed at recent low, breaking June's closing low of $127.33. The drop is accompanied by a recent, bearish MACD cross-under. The combination gives the stock the appearance of future weakness.
CRM's relative strength score is deteriorating, but still has plenty of room to move lower before hitting an oversold reading. iStock thinks there could be mild support at $125, but we feel $118ish is the stock's destination if the markets continue to be shaded red.
International Business Machines Corporation (IBM) weakness could be bad news for the Dow Jones Average and the market in general. Like Mary and the little lamb, Big Blue is a market leader, and where it goes; the market is likely to follow.
On Wednesday, IBM closed at another, near-term low. The bad news is that each notch down is occurring on heavier volume. To iStock, that means institutions might not be done selling yet.
The stock may have broken a long-term trend line, too. That's more subjective than new lows and support, but could be important nonetheless. If IBM falls and closes below $185, then $180 looks like a good bet, and it is $175 after that.