The major market averages looked to kick off the week with more strong gains early Tuesday and as FANG stock Amazon.com ( AMZN ) charged higher in the stock market today . The tech-heavy Nasdaq rose 0.8%, while the S&P 500 and Dow Jones industrial average moved up 0.7% and 1%, respectively.
[ibd-display-video id=3085698 width=50 float=left autostart=true] Meanwhile, Bitcoin plunged over 11% on Coindesk to about $12,000 amid South Korea’s potential plan to ban the trading of cryptocurrencies.
Among the Dow Jones industrials , IBM ( IBM ) traded about 1% higher in early trade after the company announced a blockchain joint venture with Danish shipping company Maersk. The stock is forming a cup-shaped base with a 182.89 potential entry.
Elsewhere in the Dow, Apple ( AAPL ) looked to extend its win streak to three trading sessions with a 1% gain. The stock is still in buy range from a 176.34 flat-base entry, but the stock’s relative strength line is nowhere near a new high.
On the downside, General Electric ( GE ) sold off over 3% after the company said it would take a $6.2 billion charge on its legacy reinsurance business. Shares are over 40% off their 52-week high.
FANG stock Amazon rose 1.6% to 1,326 in early trade Thursday after BMO Capital Markets raised its price target from 1,200 to 1,600 – a 33% increase and a 23% premium to Friday’s closing price. Its price target is the highest 12-month forecast on the Street. The stock is up for a tenth consecutive day and about 10% from a recent 1,213.51 flat-base entry.
Meanwhile, fellow FANGs Netflix ( NFLX ) and Facebook (FB) advanced 1.1% and 0.5% Tuesday. The video streaming firm is up about 10% from a 204.48 flat-base buy point, while Facebook was recovering a portion of Friday’s heavy losses after the social media giant announced changes to its News Feed.
Among companies reporting earnings , major bank Citigroup (C) rose almost 1%, as shares broke out above a 78.02 flat-base entry. The investment bank announced strong Q4 results early Tuesday. Shares also closed just above a previous 76.24 flat-base buy point Friday, but that breakout didn’t lead to any sustained gains. A potential flaw is the stock’s relative strength line, which is not confirming the breakout’s strength. Ideally, it should hit a new high on the breakout day or shortly thereafter.
Inside the IBD 50 , Alibaba (BABA) advanced about 1.5%, as the stock tried to reclaim a 191.85 cup-shaped base buy point. The Chinese leader broke out tepidly last week and has yet to close above the entry.
Elsewhere, Atlassian (TEAM) was breaking out above a 53.55 buy point in a cup-shaped base, as shares surged over 4% to new highs. Volume was tracking over 200% above average in early trade. Again, the stock’s relative strength line could be a potential problem, but it is approaching its former levels.
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