Can $NLOK Stay Alive around $16? (March 23, 2020)

by DAN NLOK 
This is Scott with your Free Chart of the Day. I want to take a look at NortonLifeLock ( NASDAQ: NLOK ). With all of the COVID-19 stuff that is happening I am actually hearing a lot about some cybercrime, some cyber phishing schemes; people trying to access other people’s money throughout all of this hysteria. Sometimes people are downloading COVID-19 apps and these apps they think have proper information but actually they are just accessing your personal information.

So I got to thinking about cybersecurity and looked up NortonLifeLock ( NASDAQ: NLOK ). The stock has been quite volatile ever since its ex dividend went where they did that special $12.00 dividend. But more recently the stock has been kind of just grinding sideways. For the last 15-days or so the stock has really just kind of stayed in a range.

I am not sure this is the bottom of NortonLifeLock ( NASDAQ: NLOK ) but it definitely could be. One thing that I like about this chart is the fact that it seems to have buyers around this $16.00 level. Anything around 16.50 and below there the buyers step in. So that tells me that there is definitely some demand for this stock around this area.

Now, I don’t think it is time to just pile into NortonLifeLock ( NASDAQ: NLOK ). But if I break things down to a short-term chart here and zoom out you can see it has really been respecting this downward sloping trendline. More recently, of course, as I mentioned, just kind of going sideways here. So it is getting tighter and as a swing trader I like tight price action.

So I think that we could probably look for a move on NortonLifeLock ( NASDAQ: NLOK ) if we take out some of these highs here; like maybe this high here from Thursday, March 19th. I think if we could get above, just to be safe, maybe set an alert around 17.35 and watch for this to squeeze to the upside potentially back above the daily 8 exponential moving average.

Of course, this would be a short-term swing trade so watch for 18.34 to act as resistance, then potentially up here at around $20.00. But for a multi-day swing trade up to $20.00, that’s almost 20 percent, not too bad if you ask me. So keep an eye on NortonLifeLock ( NASDAQ: NLOK ); set an alert around 17.35.

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