Connect with us

Hi, what are you looking for?

Stocks

2 Consolidating Stocks Ready To Resume Their Uptrends

My preference is to trade strong stocks that are simply consolidating and ridding themselves of weak hands, hopefully just in time to ride the next wave higher. Software ($DJUSSW) has been consolidating for the past couple months and appears poised to rebound from its latest 50-day SMA test:

Software is close to its relative support line and this period of consolidation has led to the RSI dropping into its key 40-50 range. I didn’t annotate it, but if you look back at the recent price peaks, you’ll see lower PPO readings, resulting in a negative divergence. When these occur, I look for subsequent PPO centerline tests and/or 50-day SMA tests to “reset” momentum. Those have both essentially been accomplished during this period of profit taking.

Note that the volume really tailed off on the selling last week. Upcoming strength and a breakout could lead to a number of software stocks regaining strength from earlier in 2024. Here are two worth considering:

ServiceNow (NOW):

Informatica (INFA):

NOW has taken the normal path when its peer group is consolidating – consolidating right along with it. INFA, however, is threatening a breakout just as software is poised to regain strength. The fact that INFA is trying to break out at a time when money is rotating AWAY from software is particularly encouraging. But it does need to make the breakout first.

10 Solid Setups

This weekend, I provided a total of 10 breakouts/reversals/setups on our EarningsBeats.com YouTube channel. I’d love for you to check them out and leave me feedback in the comments section. Also, please “Like” our video and “Subscribe” to our channel while you’re there!

10 Solid Setups

Educational Series

Last week, we started an April 4-pack Educational Series, providing lessons on candlesticks (Last Monday, April 8th – recording available), price support/resistance (today at 4:30pm ET), divergences (next Monday, April 15th at 4:30pm ET), and trading gaps (Monday, April 22nd at 4:30pm ET). If you’d like to access last Monday’s candlestick recording and register for the upcoming events, including today’s event, simply CLICK HERE.

Happy trading!

Tom

    You May Also Like

    Politics

    When George Santos mentioned his family during his congressional campaign, the New York Republican often reflected on the work ethic and strength of his...

    Business

    Two of Sam Bankman-Fried’s top business partners — a co-founder of the cryptocurrency exchange FTX and the former CEO of the hedge fund Alameda...

    Sports

    Kicker Alejandro Mata is following former Tigers coach Deion Sanders to Colorado. ‘Thankful to be committed and signed to the University of Colorado,’ Marta wrote on...

    Stocks

    SPX Monitoring Purposes: Sold long SPX 1/27/23 at 4070.56 = Gain 6.51%; Long on 12/20/22 at 3821.62. The top window is the cumulative GDX...

    Disclaimer: SecretCharts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 SecretCharts.com | All Rights Reserved