Wire (Encore Wire) is an Industrial with a high and tight flag.
Updated
I don't normally play high and tight flags in a general bear market, but industrials have been strong since last year, and this company just is kicking butt. Encore wire scores an A) in cash flow, growth, price momentum, and profit health, and a B) in relative value. According to Finbox models, this stock has an upside of 37.3%. And zero debt. Wire and cable. Think electric vehicles, etc.
High and tight flags have been backtested as 67% continuation patterns in the general trend (up). The reason they are so successful is that at new highs, there are no sellers above.
Not a recommendation, just an idea.
High and tight flags have been backtested as 67% continuation patterns in the general trend (up). The reason they are so successful is that at new highs, there are no sellers above.
Not a recommendation, just an idea.
Note
On Friday's selloff, this broke through bottom channel of flag. Wouldn't touch it unless it broke through the upside of the flag. This is why high and tight flags should be played with caution during a bear market.
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