Perion Network (PERI:NASDAQ)

PERI is a great pick for investors and traders looking to benefit from the ChatGPT AI software revolution. By being a strategic partner with Microsoft’s Bing search engine, PERI has become well positioned to capitalize on the growing demand for this kind of revolutionary technology. 

I am particularly bullish on PERI due to its ability to remain above the $25 – $26 range and given that my upside target projects up to $37 – $39, there is still plenty of room for growth. If you are looking at getting into this type of tech, now is the time to invest in PERI.

CATERPILLAR, INC (CAT:NYSE)

Industrial stocks have outperformed in recent months as investors shift toward cyclical. Today’s chart focuses on Caterpillar, a potential beneficiary of infrastructure spending in the U.S. and a recovery in China.

CAT challenged $237.90 (the peak from April 2022) several times in November before breaking through in December. The stock bounced at the same level early this year, which may suggest old resistance is new support. (See the small white arrows on the chart.)

Next is the June 2021 high of $246.69. Prices jumped through that level to a new high on Friday. They retested on Monday and are trying to hold it today. (Additionally, the weekly chart had a bullish outside candle.)

You also have a gap higher on October 27 after earnings and revenue beat estimates. Four weeks later, the 50-day simple moving average (SMA) had a “golden cross” above the 200-day SMA.

Finally, MACD has turned positive again after a month of declines.

AVAX/USDT

AVAX has rallied 30%, moving from $12.50 earlier in the day and finishing off this morning at $16.50. The move came after news of Ava Labs joining forces with Amazon Web Services (AWS). 

Price is currently trading at resistance, and the Stoch RSI is overbought on higher time frames, so I expect a retrace in the coming days to retest the next level of support and previous daily descending resistance line at around $13.00 – $14.00. 

The price is over-extended, but if the $16.50 area of resistance breaks, the next one is around $17.70.

US Dollar Currency Index (DXY)

The DXY continues to squeeze down without any big bounces. 

As it keeps dropping, I expect stocks and crypto to continue their relief rallies. Once it finds support – likely around the 100-102 level – the DXY should bounce and set another lower high. That will lead to one more pull-back or sell-off for crypto. 

The way I use this to assist in my trading decisions is as follows: 

If bitcoin is nearing significant resistance and the DXY begins bouncing, I see an opportunity to short bitcoin. But if the DXY is moving towards a crucial support level and bitcoin has already broken the high timeframe structure, having made a new higher high, the DXY bounce leads to the next higher low for bitcoin. In that case, instead of shorting bitcoin, I just wait to capitalize on a buy-the-dip opportunity.