Baseontopofabase
$DLTR ready to push higher?Notes:
* Very strong up trend in all time frames
* Great earnings
* Building a base on base pattern
* Coming up off of its 50 day line with volume
Technicals:
Sector: Consumer Defensive - Discount Stores
Relative Strength vs. Sector: 2.53
Relative Strength vs. SP500: 1.45
U/D Ratio: 1.12
Base Depth: 36.34%
Distance from breakout buy point: -5.45%
Volume 48.18% above its 15 day avg.
Trade Idea:
* You can enter now as the price is just coming off of its 50 day line with higher than average volume
* If you're looking for a better entry you can look around the 162.13 area or around the 163.8 area
* This stock usually has local tops when the price closes around 15.72% above its 50 EMA
* Consider selling into strength if the price closes 15.52% to 15.92% (or higher) above its 50 EMA
* The last closing price is 5.82% away from its 50 EMA
$AFG is leading the financial sector. Is it ready to go higher?Notes:
* Very strong up trend on all time frames
* Great earnings
* Pays out dividends
* Breaking out of a base on base pattern of around 8 months
* Held up incredibly well as the general market and the financial sector were taking a beating
Technicals:
Sector: Financial - Insurance - Property & Casualty
Relative Strength vs. Sector: 1.15
Relative Strength vs. SP500: 1.16
U/D Ratio: 0.95
Base Depth: 22.15%
Distance from breakout buy point: 0.44%
Volume 9.09% above its 15 day avg.
Trade Idea:
* You can enter now as the price is just breaking out of its base and is still very close to its 50 day line.
* If you're looking for a better entry you can look for one around $136.75
* This stock usually has local tops when the price closes around 15.82% above its 50 EMA
* Consider selling into strength if the price closes 15.62% to 16.02% (or higher) above the 50 EMA...
* The last closing price is 5.02% away from its 50 EMA
VCP characteristics, Base on Base structureExhibiting good relative strength.
Tight contraction on the right hand side and volume dry up in the last couple of days.
Volume surge in shorter time frame.
Surged through pivot at 741.
Broader market is weak, therefore sizing 10% of portfolio.
Bought at 735, will close if breaches day low.
Publishing for my own reference. Not an investment/trading advise.
$HSIC looking to make the next leg higher!Notes:
* Solid earnings in the recent quarters
* Strong up trend in the long term
* Broke out of a base on base pattern
* Initially created a base of ~9 months, broke out and created a smaller base of ~4 week and is now breaking out again
* The ~9 month base was just above historical highs of $73.19 setting it as support
* Making new all-time-highs
* For the past 3 weeks it has been testing $87.55 as a new level of support with the volume drying up indicating that buyers and sellers are agreeing on this price
Technicals:
* Sector: Healthcare - Medical Distribution
* Relative Strength vs. Sector: 2.11
* Relative Strength vs. SP500: 5.05
* U/D Ratio: 1.79
* Base Depth: ~19.68%
* Distance from breakout buy point: 2.25%
* Volume 1.04% above its 15 day avg.
Trade Idea:
* You can look to enter now as the price is still pretty close to the broken level of $87.55
* Manage risk under $87.55
* If you're looking for a better entry you can look to buy around $88.72.
$DSKE to move higher as it recovers from pullback?* Okay earnings
* Strong up trend since 2019
* Sector: Industrials - Trucking
* Relative Strength vs. Sector: 13.48
* Relative Strength vs. SP500: 12.37
* U/D Ratio: 1.21
* Base Depth: 39.33%
* Distance from breakout buy point: 0.34%
* Volume 24.81% above its 15 day average
* Created a base on base pattern
* Was trading in a tight range earlier before the breakout
* Then pulled back into the range and is now breaking out
* The red horizontal lines indicate previous all-time-highs from 2017/18
Trade Idea:
* You can enter now as the price is just breaking out of the range for the second time and it also seems like a pullback recovery.
* If you're looking for a better entry you can look for a buy opportunity inside the range if it comes back in.
Note:
* First target should be achievable given that it's inside the recent range.
$MATX breaking out of a base on base pattern!* Great earnings
* Very strong up trend on the monthly time frame
* Very high 3-month relative strength of 2.73 in the Industrials - Marine Shipping sector
* U/D Volume Ratio of 0.85 (above 1 is preferred)
* Upper base depth of 19.06%
* Currently trading with volume 184.01% above its 15 day average
* During the formation of the upper base it also created a cup and handle pattern
* And is now breaking out with tonnes of volume.
Warning:
* Given the current market conditions, it's considered better to sit in cash and wait for the general conditions to stabilize.
Trade Idea:
* Now's a great time to enter since the price is really close to the broken level.
* If you're looking for a better entry, you can look for an entry opportunity near the $91.49 area.
* Consider keeping a tight stop since the general market conditions are unfavorable and also consider booking profits early for the same reason.
KLAC ready to make new all time highs?* Exceptional earnings quarter over quarter
* Incredibly strong up trend over the long term
* High 3-month relative strength of 2.87 in the Tech sector
* Pays out dividends
* Breaking out of a base on base pattern
* First base lasted ~8 months before breaking out
* Second base formed immediately after the breakout and has been forming for the past ~9 weeks
* Current week is also forming a bullish engulfing candle
* It did try and break out of the second base earlier but due to current market conditions it had a slight pull back.
* Now it's breaking out for the second time with higher than average volume.
Trade Idea:
* You can enter now at today's close as a starter position if you want to stay in the market and set a closer target.
SCHW looking to reach new highs?* Great earnings
* Strong up trend
* High 3-month relative strength of 3.72 in the Financial sector
* Breaking out of a base on base pattern with higher than average volume
* Broke out a few days ago but due to the market conditions it had a slight pull back to the breakout point
Trade Idea:
* If you don't mind a little volatility and want to catch the bigger move, you can enter now as indicated.
* The price is only 1.73% away from the broken level
* However, if you're looking for a better entry, you can look for one around the $84.30 area as that should serve as support moving forward.
PAYX showing signs of continuing higher!* I last spoke about PAYX around mid October as it was breaking out of the $117.70 area.
* Since then it has moved higher and began to consolidate forming a base on base pattern.
* It recently had a pullback to the previous base resistance and used it as support to bounce back.
* And it also held up very well during the general market correction.
* Great earnings
* Very strong up trend
* High 3-month relative strength in the Tech sector
* Breaking out of a base on base pattern with higher than average volume (52.25% higher than the 15 day average)
Trade Idea:
* The price just broke out of a base on base pattern and is still close to the broken resistance.
* Currently offering a great risk/reward ratio
* You can enter as indicated
* If you're looking to find a slight discount you can look for an entry around the $125 area as that should hold up as short term support.
Caution:
* A daily close below $123.55 would negate this idea.
OMCL showing signs of moving higher with a pocket pivot?* Great earnings
* Strong up trend
* Very high 3-month relative strength in the Healthcare sector of 10.44
* Trading at higher than average volume creating a pocket pivot
* Trading in a tight range of ~5% range
* Little to no overhead resistance
* Has held up incredibly well during this correction with little to no downside at all.
Trade Idea:
* You can enter as indicated before the breakout from the range.
* This entry will net you a better risk/reward ratio but with the risk of not breaking out just yet.
* If you want to be conservative given the current market conditions, it may be better to wait for the breakout (a daily close) above $182.73 before entering.
Note/Caution:
* This is a pocket pivot entry and although it has little to no resistance, it may not break out immediately.
* Pocket pivots indicate institutional interest in the stock.
MAA showing strength in the Real Estate sector.* Good earnings
* Very strong up trend
* High 3-month relative strength in the Real Estate sector
* Breaking out of a base on base pattern
* The upper base was constructed over 6 weeks
* Breaking out with a lot of volume (130.2% above the 15 day average)
* The Real Estate sector has been consolidating in a very tight range for the past several weeks and is showing signs of breaking out.
Trade Idea:
* Now's a good time to enter as the price broke out for the second time in 3 days.
* It broke out with tonnes of volume so I expect $207.69 to serve as support moving forward
* Alternatively, if you're not getting in now, you can look for buying opportunities near the support of $207.69.
Caution:
* Needless to say, the market is very volatile at the moment and if this makes a daily close below the 20 EMA you might want to consider taking an early exit.
Where is PLD headed next?* Exceptional earnings
* Very strong up trend
* High 3-month relative strength in the Real Estate sector
* Built a 3 month base between $125.45 and $138.67
* After breaking out started to consolidate in a tight range
* Slowly kept moving higher even as the general Real Estate sector was ranging during the same period
* Broke out of the tight consolidation with higher than average volume
Trade Idea:
* Now's a great time to enter as the price just broke out of the tight range
* If you're looking for a slight discount you can look to buy near the $150.90 area as that should serve as support
* Even if the general Real Estate sector continues to range it seems like PLD will continue to move higher; given how it performed over the past three weeks.
CSX broke out of a tight range. Where is it headed next?* Great earnings
* Very strong up trend
* High 3-month relative strength in the Industrial sector
* Built an 8 month base between $29.71 and $34.26
* After breaking out it started to consolidate in a tight range creating a base on base pattern
* Breaking out of the range with higher than average volume
Trade Idea:
* Now's a great time to enter as the price is very close to the broken level
Caution:
* A daily close below $36.25 would put the price back inside the range and expose $35.14 as support
* Consider exiting the trade early if the price make 4 consecutive lower lows on a daily basis.
* Alternatively, a daily close below $35.14 would negate the idea
UNP ready to make the next move higher?* Great earnings
* Very strong up trend
* High 3-month relative strength in the Industrial sector
* Built an 11 month base between $196 and $227.80
* After breaking out it started consolidating in a very tight range creating a base on base pattern
* Consolidated for about a month and now breaking out with higher than average volume
Trade Idea:
* If you can handle a little volatility, now's a great time to enter as the price is still close to the broken range and is picking up on volume
* If you're looking for a slight discount you can look for buying opportunities near the $243.91 area
* Looking at the chart, it wouldn't surprise me if it does come back to retest the $243.91 area before heading higher.
Caution:
* A daily close below $238.83 would negate the idea
CNQ indicating it's ready to move higher!* Great earnings with acceleration
* On the longer time frames, it's mostly sideways but has started a new up trend
* High relative strength in the Energy sector
* Broke out of a ~4 month basing pattern before making the leg higher.
* Consolidated in a tight range of 3.77% before breaking out again
* Maximum probable ROI for this trade would be around 26.70%
Trade Idea:
* Now's the perfect time to get in as the price is still close to the broken range
* Broke out with very high volume (178.08% of the consolidation average)
* This can also be considered a Pocket Pivot breakout; indicating institutional interest
FRC ready to move higher!* Excellent earnings
* Strong up trend
* High 3-month relative strength in the Financial sector
* Breaking out of a base on base pattern with higher than average volume
* Was consolidating for ~3 months prior to building another base
Trad Idea:
* Now's a great time to enter as the price is close to the broken level and volume is picking up as well.
* If you're looking for a slight discount you can look for buying opportunities near the $219.76 area
Caution:
* A daily close below $219.76 would put the price back inside the range and expose $211.91 as support.
* Two or three consecutive days closing below $219.76 would negate the idea.