parental google the alphabet (Google) tops the list of stocks to watch for this week because Google shares are in buy territory. EV-related plays and BD 50 list members Allison transmission (ALSN) And Lee Auto (for me) is also in the list. So is the oil services giant slb (slb) with the Payments Processor Master Card Credit Card (Master’s).
the The market is correcting An attempted rally faltered late last week as indices hit resistance at their 50-day moving averages. Investors should be careful about making new purchases.
But, at the very least, investors should pay close attention to stocks that are close to buying points, hold key support and show relative strength.
Tech Titan Alphabet is a member of IBD Big Cap 20 existing. Google shares are up 47% this year despite the rise in artificial intelligence and competition for Internet search. Earnings rose 19% to $1.44 per share for second-quarter results in late July, ending a four-quarter year-over-year streak of declines.
Google shares are trading in a mug-by-handle buy zone. The 5% buy zone extends beyond a certain buy point. Shares broke out on July 26 after rising above the buy point of 127.10.
Investors can wait to see if GOOGL can clear its mini-merger of the past few weeks.
Google reached a 52-week high of 134.25 Thursday morning and then fell to 127.25 on Friday before ending the week up 1.9% at 129.88.
GOOGL has a composite rating of 98 out of the 99 best possible scores. The composite rating combines various technical indicators into one easy-to-read score. Alphabet has a rating of 90 EPS. The stock’s RSI is off recent highs and has a rating of 90 RS.
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Payments giant Mastercard is holding out even as retailers warn of slowing consumer spending. Substantial increases in transaction volume and cross-border payments stemming from the travel boom boosted profits for both Mastercard and Mastercard. visa (Fifth) the past four quarters.
Elsewhere, MasterCard has ended its cryptocurrency card partnership with the Binance exchange, Decrypt reported Friday. MasterCard plans to wind down its four pilot programs in Argentina, Brazil, Colombia and Bahrain by the Sept. 22 deadline. The card company announced the partnership with Binance last year, while Visa ended its partnership with Binance last month.
MA stock has a new flat bottom with a buy point of 405.19. This flat base largely formed in the buy area of the previous flat base at a buy point of 392.20.
MasterCard shares rose 2.7% to 402.89 during the week.
MA stock has a Composite rating of 88 and an EPS rating of 86. Mastercard’s relative strength line has been trending higher since late July and it has a rating of 84 RS.
Allison Transmission was the IBD stock of the day on Thursday. The Indianapolis-based company manufactures transmission and drivetrain components for commercial, electric and defense vehicles. Allison is maneuvering further into the electric vehicle space through acquisitions and partnerships with its ilk Nikola (NKLA).
ALSN stock is in an extended narrowing pattern with a buy point of 60.17. The pattern can mature to a flat base, but it needs another week or so.
Shares rose 0.1% to 58.68 last week.
The stock’s RSI is hovering near a 52-week high after a strong rally that began in May. Stocks found support at the 21-day exponential moving average, while the 50-day and 10-week lines are catching up to that level.
Allison stock is up more than 40% this year and reached a record high of 60.17 on July 28 after an outperformance and rally report in the second quarter. ALSN shares have a near-perfect 97 Composite rating and an 88 EPS rating. The stock has a rating of 94 RS.
Shares of SLB, formerly known as Schlumberger, rose above their buy point in early August as oil prices rose to their highest levels since last year. WTI futures have declined slightly over the past two weeks and are hovering around September 2022 levels.
The oilfield services giant is a member of the IBD Big Cap 20 list.
SLB fell 2.7% to 56.46 last week, approaching the 10-week line as Crude Oil prices fell.
The SLB is trading below the 58.70 buy point of the handle cup base after rising above the entry level on August 9th. Investors can choose to focus on 60.12 as a new buy point for the handle. But that would provide an early entry around the old 58.70 level.
SLB stock has a perfect composite rating and rating of 89 EPS. The RSI line has fallen from its mid-August highs with a rating of 91 RS.
LI Auto leads the group of auto manufacturers according to the IBD inventory check. The Chinese electric vehicle maker beat estimates for second-quarter profit at the start of the month as deliveries increased.
Li expects to deliver 100,000 to 103,000 hybrid SUVs in the third quarter, an improvement from the 86,533 electric vehicles in the second quarter. The company has already reported 34,134 deliveries in July. Lee will report on August deliveries on Friday, September 1st.
Production bottlenecks are limiting further growth in deliveries, but that should end soon with the commissioning of a new factory in Beijing. This plant will also build a minivan, Li’s first all-electric vehicle, with deliveries of the Mega MPV beginning in early 2024.
After more than doubling from late April to early August, LI stock fell to find support along the 50-day line. A bullish bounce above the 21-day exponential moving average could be an entry. Stocks may form a base.
Li Auto rose 1.1% on Friday and over the course of the week to 39.26.
LI stock has a perfect 99 composite rating and an 81 EPS rating. The stock’s RSI is off its early August highs but still has a near perfect 97 RS rating.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
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