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3 Big Stock Charts: International Business Machines Corp. (IBM), Express Scripts Holding Company (ESRX) and Chipotle Mexican Grill, Inc. (CMG)

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Earnings are clearly in the driver's seat this week as the number of S&P 500 companies announcing their quarterly results is the second highest per week of the season. With some large names to come later this week, the market is likely to take a little rest.

However, names like Express Scripts Holding Company (NASDAQ: ESRX ), Chipotle Mexican Grill, Inc. (NYSE: CMG ) and International Business Machines Corp. (NYSE: IBM ), which announced earnings last week, are making moves off their results.

Express Scripts Holding Company (ESRX)

Express Scripts announced earnings that were better than expectations by a penny while providing in-line guidance. The earnings beat will give a little relief to the pressure that ESRX shares have felt for the last five months since peaking in July, but the shift will turn to selling in the wake of the longer-term picture.

Express Scripts also disclosed the civil investigation and subpoenas from the United States Attorney's Office, which has tempered the rally that ESRX shares would otherwise be seeing.

The Express Scripts chart has shown resilience at the $70-level as we've seen a long consolidation here, testing the lower bounds of $69 three times since September. The earnings news, while short-term bullish, will likely give the last move higher before ESRX tests and breaks $69 on a move lower.

The monthly chart for Express Scripts shows resistance at the $72.50-mark from a declining 10-month moving average, which is where the shares will find sellers today. The lack of positive momentum and an RSI that will quickly lean towards a short-term overbought indication should be the weakness of any rally in ESRX.

Unfortunately, for now, the charts show a trip to $65 as being more likely than $75 for Express Scripts over the short-term period.

Chipotle Mexican Grill, Inc. (CMG)

Chipotle stock has been trying desperately to hang in there at the $400-level for the last five months. The consolidation at this mark has been strong enough that an average earnings report would have sent CMG shares rallying … instead they got another bad quarter.

Chipotle shares will once again break through the $400-level this morning with less conviction from traders, meaning that the short-term target has shifted in favor of the bears. Today's move will break the lower Bollinger band on CMG stock, sending it into a selling frenzy of sorts as the analyst community starts to pile on with downgrades to the shares and their target prices.

For now, the $350-level should provide some support and buying for Chipotle shares, but the trajectory and declining trendlines suggest that longer-term investors may see a price point that begins with a 2 before it's a real value buy. This is true as the technicals for CMG may give way to the $300-level for the next long-term support level.

International Business Machines Corp. (IBM)

IBM stock has been languishing after an earnings result that failed to spark interest in the computer giant last week, although it held its bottom at $150. Now, a lack of selling volume and an oversold signal from its RSI has the shares preparing a short short-term rally.

IBM shares hit an oversold reading two days ago on the first test of $150. We saw moderate buying volume come in twice since then on each touch of the $150-mark. The problem with the signal is that we've not seen a shift in momentum as of yet as other technology companies have failed to give investors a reason to buy the sector. This will change over the next week with technology earnings starting to pick up.

IBM shares catapulted higher in July after an initial sell-off after earnings and after crossing above the $150 price point. In that situation, the shares rallied to $165. Traders' memory of this makes the hold at $150 more important this time around and more likely to draw short-term sellers into the market.

Some resistance will be in place for IBM at the $157-mark as this is the site of the declining 50-day moving average, but building momentum to the upside should allow for a short-term break above this resistance with a target of $160 for the stock over the near-term.

As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.

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The post 3 Big Stock Charts: International Business Machines Corp. (IBM), Express Scripts Holding Company (ESRX) and Chipotle Mexican Grill, Inc. (CMG) appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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