Taco Tuesday!

Good morning and welcome back. Following a three-day weekend, investors and traders are eagerly awaiting to start the third week of the 2024 investing season. It is our opinion that any week beginning on Taco Tuesday is likely to be promising! How about a visit to the food truck park to indulge in some street tacos—extra salsa verde and cilantro, please! 

Spotify Technology ($SPOT)

On Friday, Spotify reclaimed and closed above the $200 psychological level. This resilient price action is very encouraging for bulls, as these rounded levels often become significant support or resistance points for further sustained moves. Bulls will be looking to defend at $200 and a vigorous push through $204.02 to initiate the breakout.

Vistra Corp ($VST)

A beautiful ascending channel has taken shape for Vistra Corporation. VST successfully surpassed the preceding all-time high, approximately $28, in July 2023, and is sustaining an upward trajectory ever since! The primary and least resistance path for advancement involves defending the $39.22 level. A breakdown from this level may alter the upward momentum, potentially initiating some selling pressure. If the momentum observed last Tuesday serves as an indicator for today’s potential price action (Tuesday), VST is positioned to establish a new all-time high by the close of market today. If the bulls are unable to hold the $39.22 level, the next notable support line will be at the midpoint of the ascending channel. Taking a broader perspective, bulls are aiming to achieve a full 100% run from the pivotal line in the sand at $22. For this reason, we have established a final price target of $44. 

Tesla Inc ($TSLA)

Since the turn of the 2024 calendar year, Tesla has experienced substantial selling pressure. Today marks a critical juncture, necessitating bullish investors to bring out the horns and draw a line in the sand. Tesla has declined by more than 18% from its recent peak on December 29, 2023. Historically, the Tesla Public Relations team has demonstrated a highly strategic approach to positive news releases, and we anticipate this trend to persist today! Additionally, Elon Musk, himself, typically contributes highly anticipated news to reinforce such releases. As illustrated in the chart below, Tesla is currently positioned just above a crucial trendline support. While not explicitly noted in the chart, a significant observation from the Relative Strength Indicator (RSI) merits attention. The RSI indicator has consistently displayed readings slightly below 30 at recent market lows, indicative of oversold conditions. Currently hovering around 31, the RSI is signaling a "buy, buy, buy" recommendation.

AppLovin’ Corporation ($APP)

Since the Q2 ‘23 earnings release on August 10, 2023, AppLovin has exhibited a pattern of sideways consolidation. The trading range spans approximately $10, with both bulls and bears trying to influence the direction of the next market move. As depicted in the chart, a significant tug-of-war dynamic has emerged between the two, each successfully defending their positions on three occasions (green/red points). The short interest in the stock has been consistently increasing, reaching above 10% at this time. According to momentum indicators, such as the RSI, the bulls currently maintain an advantageous position (60.17) and are poised to initiate a short squeeze in the near future. The consolidation pivot points stands at approximately $39.69, with bulls looking to sustain prices above this level. A substantial breakthrough beyond the $45.11 level can trigger a short squeeze, leading to a surge in price. Our target projects an approximate 23% increase from Friday’s closing price of $41.71, establishing a price target of $51.