Google recently joined the list of growing companies to postpone their back-to-work plans as the COVID-19 delta variant continues to spread. Along with Google, Apple has previously extended working from home for the same reason. As large corporations postpone back-to-office mandates, many other companies are giving their employees the option to continue to work from home. With that said, we are keeping an eye on companies related to the stay-at-home trend as we watch for the government's continued reaction towards the more contagious delta variant.
When the pandemic first took off, tech companies like Zoom (ZM) and online retailers pushed ahead as people flocked to buy goods online and avoid brick-and-mortar stores. This included companies such as Shopify (SHOP), Chewy (CHWY) and Amazon (AMZN). Now that investors are seeing that the back-to-normal trend could be diluted from a split in the U.S workforce staying home, we could see the stay-at-home stocks continue higher.
With that said, let's look at the some with great potential chart setups.
Both CHWY and ZM have pulled back from all-time highs and are now trending upwards. CHWY has the potential to run back to $100 if it holds over $87 and support from the 200-Day moving average at $83.20. On the other hand, ZM needs to clear resistance from the 200-DMA at $378. If it holds over the major moving average for 2 consecutive days, it will confirm an accumulation phase change. A phase change confirmation can highly increase the odds the symbol will continue its trend in the confirmed direction. Then, we can watch for it to clear its next main resistance area at $450.
Another popular company is Teledoc (TDOC).
TDOC provides mobile healthcare services and is another one to watch, as it reported earnings on July 27th and is now looking to clear over its 50-DMA at $135.50.
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ETF Summary
- S&P 500 (SPY): 439.26 needs to clear.
- Russell 2000 (IWM): 208.64 main support. 224 resistance area.
- Dow (DIA): 351 resistance area.
- Nasdaq (QQQ): Holding over its 10-DMA at 362.40.
- KRE (Regional Banks): Watching for another close over the 10-DMA at 62.12.
- SMH (Semiconductors): 251 support area.
- IYT (Transportation): 245.48 support. Needs to clear 251.78.
- IBB (Biotechnology): 159.84 new support.
- XRT (Retail): Choppy price action. Watching to hold the 50-DMA at 94.89.
Forrest Crist-Ruiz
MarketGauge.com
Assistant Director of Trading Research and Education
