Hope everyone is having a good week. You can find some of these updates on the forum. I’ve put together a few notable charts for you to consider.

Twilio

Twilio (TWLO) is currently above its 8-day EMA (in green), which is holding the price as support, as it tests the 61.8% retrace level around $123.50. This level coincides with a number of price clusters, so breaking through it would indicate that the likelihood of a new uptrend is high.

• I want to see it take break above the 61.8% retrace level around $132/$133 before initiating a position. Once in, I will use the 200-day MA as my stop.
• I am leaving a count up that suggests another leg down until these levels are taken back.

It’s also worth noting that the RSI is at an extreme overbought point. The internals will need to reset to continue the climb up, or it’s reached exhaustion.

Alteryx

Alteryx (AYX), like Twilio, appears to be corrective. The structure of the uptrend appears to be a 3-wave move, were the final leg extends to the 127.2% extension of the first leg around $132.60. This is a significant point in Fibonacci trading, where we see prices usually hault and reverse. With Twilio, this level is currently acting as resistence. The RSI is also at overbought levels, showing negative divergence (higher highs in the RSI compared to lower highs in the price), which is also suggesting a needed pullback, so the internals can reset.

• Above the $132.60 level and I will go long with a very tight stop, which I will place just below the 20-day EMA (in blue). I will keep this stop until we break out to new highs, at which point I will look to widen the stop.
• If AYX continues to stall, look to the 200-day MA for the next support level (in red).
• If the 200-day MA does not hold, expect AYX to test the prior bottom.

Slack

Slack (WORK), also saw a new uptrend, but terminated around the same region it has failed since bottoming in November of 2019. Slack has been trading in this range between $23/$24 – $21/$20, showing no sign of making a decision yet.

It’s worth pointing out the symmetry in Slack’s recent failure to breakout. Symmetry is an important tool in Technical Analysis, which can be used to establish game plans. The last move up failed at 20.53%. So, for this move up, the 20% range was an important pivot point, which I was watching for a confirmed breakout, or a retest of the lows.

Notice The current uptrend failed at 20.23%. This is not coincidental, and a phenomenon we see time and time again.

• Slack has been range bound between $19.50/$20.00 and $23/$24 for a few months. I’ve been able to predictably trade this range.
• If Slack breaks through the new 78.6% retrace level at $21, while breaking the noticeable uptrend in the MACD, we can expect a retest of $19.50.
• When Slack breaks $24, that’s a sign of a renewed uptrend and will be with the trend. Or, attempt to catch the bottom with a buy and hold in the $20-21 range with a stop at $19.50. We believe the sentiment around Slack could lead to a surprise this year. Beth believes timing could be somewhat painful for Slack, but the engagement is too high to ignore. The noise about Microsoft is valid yet there is easily room for two workplace messaging apps and this shouldn’t deter Slack’s user base from growing.

Netflix

Netflix is showing a classic (1)-(2), 1-2 structure. In other words, in Elliott Wave Theory, the 5-wave move is comprised of smaller degree 5-waves and is part of larger degree 5 waves. So, in the chart, we have a clear wave (1) and then a (2) in red. That would potentially put us in the first wave of the wave (3). This will be confirmed if we get a corrective pull back, which bottoms around the target box in the graph.

• If Netflix pulls back to the $250 level, then I will look to go long and lean towards the next leg up being the early stages of a 3rd wave.  
• I understand I could miss an upward trend if Netflix breaks $385 on high volume. Due to risk/reward, I’m favoring the pullback.

Zoom Video

Zoom (ZM) cannot break above the volume weighted moving average, which is anchored at the all-time high in blue. These levels show who is in control of the current trend, and breaking above these levels is both a sign of strength and also needed to confirm a continued uptrend.

However, the structure of ZM is suggesting more downside before we get a confirmed breakout. The internals have broken their trend, and the uptrend in ZM is too overlapping to be anything but corrective. For anyone looking to go long, I think you will get better price. For any positions, I recommend placing a tight stop at the all-time low of $59.90.

We recently suggested buying ZM in the low $60, and as long as ZM holds the all-time low, we are expecting new highs in the coming months.

Beth is putting out a conviction list soon. She likes Zoom’s fundamentals quite a bit including the viral mechanics of the product.