6 Stocks at Must-Watch Levels

AMT, BBBY, AMAT, RHT, ABX, and NEM are all hovering near key retracement levels

by Alex Eppstein

Published on Dec 8, 2016 at 10:53 AM
Updated on Dec 19, 2016 at 3:04 PM

In our quest to find stocks on the brink of major moves, we frequently look at key retracement and Fibonacci levels. These can be used to help predict both trends and trend reversals. This week, among the stocks flirting with critical technical levels are real estate investment trust (REIT) American Tower Corp (NYSE:AMT), retailer Bed Bath & Beyond Inc. (NASDAQ:BBBY), tech stocks Applied Materials, Inc. (NASDAQ:AMAT) and Red Hat Inc (NYSE:RHT), as well as gold concerns Barrick Gold Corporation (USA) (NYSE:ABX) and Newmont Mining Corp (NYSE:NEM).

On the surface, AMT has had a solid-if-unspectacular year, up 6.4% at $103.12. Since its late-July record high at $118.26, however, the stock has been pulling back. Fortunately for shareholders, this downward action could abate with AMT sitting atop a 50% retracement of its February low and 2016 highs. This corresponds with the round $100 century level, hinting at a potential double-barreled layer of support.

amt weekly dec 8

BBBY has sat out the broad-market rally in 2016, down 1% at $47.74. Technically, however, the stock has shown signs of life in recent weeks. The shares pulled back to their 61.8% Fibonacci retracement of their 2000 lows and early 2014 highs, but quickly bounced. Now, BBBY is sitting around its highs from 2003-07, and atop the 50% retracement level.

bbby weekly dec 8

AMAT has been on fire, soaring over 75% year-to-date at $32.72 -- including today's 16-year high of $32.92. Moreover, the tech stock is at a perfect 50% retracement of its 2000 highs and late-2008 low.

amat weekly dec 8

RHT has had a poor year, dropping 5% at $78.74. That said, the shares did bounce in early 2016 at the 38.2% Fibonacci level of their 2000 highs and 2001 lows, and are currently in the 50% retracement area -- suggesting another sharp move could be forthcoming.

rht weekly dec 8

ABX has struggled since peaking in early July, but has still more than doubled in value year-to-date at $15.80. Last month, the stock may have even put in a short-term bottom. ABX shares hit the 50% retracement level of their late-2015 lows and the aforementioned high, and subsequently bounced.

abx weekly dec 8

It's a similar setup on sector peer NEM. The stock is up 87% year-to-date at $33.68, helped by a recent bounce off its 50% retracement level of its late-2015 lows and August 2016 highs. Another big swing could be around the corner, with NEM now moving toward its 38.2% Fibonacci retracement.

nem weekly dec 8

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