BofA issues technical takes for its top 10 Q1 stocks
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At the start of the year, BofA Global Research chose 10 stocks for Q1 with the philosophy of selectivity amid volatility.
Volatility brings "potential opportunities" but calls for a more precise approach, BofA says.
"Our strategy team is bullish on capex, cautious on consumption, and recommends companies with strong free cash flow and inflation-protected yields."
Now technical strategist Stephen Suttmeier looks at the charts of the 10 picks (9 outperform and 1 underperform).
Carrier Global (NYSE:CARR) has "a potential September 2021 into January 2022 bullish continuation pattern. Holding support near 51.41 (rising 40-week MA) and 50.36-49.93 (December and October lows) maintains this view."
Citigroup (NYSE:C) has a mixed technical picture. "The positives are that uptrend support from the March 2020 low held in late December and then the stock rallied back above broken chart and 200-week MA support at 64.36-64.44. This tactical improvement favors a test of declining 26 and 40-week MAs and June 2021 downtrend resistance at 67.82-69.68, where a break higher is needed to improve the technicals."



CNH Industrial (NYSE:CNHI) has "a big base breakout and retest pattern that counts up to 22. Holding rising and bullish 13, 26 and 40-week MAs near 15.63-14.81 would keep the 1Q22 pattern bullish."
CrowdStrike (NASDAQ:CRWD) has a pennant that "remains intact as long as resistance near 206-217 holds with downside risk into the 169-168 to 154-153 support range."
Lamb Weston (NYSE:LW) would need to "hold the 63.65 to 59.60 support zone on any dips." Then, "the technical backdrop would suggest potential for a more meaningful bullish trend change for the stock."
Occidental (NYSE:OXY) has "a double bottom from the 2020 lows that favors upside to 37.25 (chart level) and 40 (pattern count) with additional strength to the declining 40-week MA near 41.83 not ruled out."
Rexford Industrial (NYSE:REXR) "enters 2022 with a pullback within bullish, but extended, absolute and relative price trends."



ViacomCBS (NASDAQ:VIAC) chart shows that "below 37.32-38.22 (chart resistance) and 38.43 (declining 40-week MA), the technical trend is bearish with risk back to the late 2021 lows at 28.90-28.29 and down to 26.20 (bearish count for the late October breakdown)."
Xcel Energy (NASDAQ:XEL) "has pushed above its 13, 26 and 40-week MAs and November 2020 downtrend line clustered in the 66-67.61 range. This tactically bullish move favors upside to chart resistance at 72 73 and then toward the November 2020 peak at 76.44."
AutoZone (NYSE:AZO) is the underperform name. "The 1941 level offers key 1Q22 support. While above 1941, the bulls have control with upside potential toward 2300-2400 (rising channel resistance). It would take a decisive break below 1941 to get more negative on AZO with deeper risk to the next support near 1807-1767."
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