It’s been a while since I last talked about the setups I am watching and why I am watching them, so that’s what I am going to do this weekend. As always, if you have any questions or comments, feel free to reach out and tell/ask me.
$DPZ, $MGNX, $NLS, $POWR, $RDWR, $WUBA are the main stocks we will be focusing on today. There are more strong stocks than just these that have some potential out there right, but for the sake of our time and sanity, I have narrowed them down to a select few that I like the best.
$DPZ – One of the tightest patterns in the entire list. Part of my strategy is to find the tight set-ups and then set a stop loss close by, thus, lowering the risk associated with the trade. As for DPZ, the stop loss would likely go just below Friday’s lows. I think this one, had I seen it Friday, I would have bought.
$MGNX – This pattern is not usually one that I would actually trade, but it is a stock that is inside a base and is holding higher within the consolidation. So, in that sense, there is some potential for upside. The reason why I wouldn’t own it right now is because the BBs are not pinched and the stop would need to be too far away.
$NLS – This stock is one that I WILL purchase Monday afternoon if the stock holds higher inside this consolidation pattern one more day and then closes at the highs of the day. Love the strength and how tight this pattern is shaping up to be.
$POWR – Not the absolute favorite of the group, but definitely own-able versus the lows of Friday, from a swing perspective. I really like the BBs pinch, the closing on the highs of the day and relative strength (versus the SP500).
$RDWR – By far one of the best out there right now. I really like the way this one looks from a swing perspective. The BBs are pinched, the stock is showing Relative Strength and it is closing at the highs of the day within a consolidation pattern. All these make it a perfect Coghill Flag pattern candidate. If I had seen this one Friday, I would have purchased it.
$WUBA – This is one stock that has a ton of potential, but just isn’t quite ready yet to be purchased. If it can hold higher one more day (above the 21 ema) after Friday’s huge upside day, then I will be purchasing it versus the lows of the day Monday. This is a much watch potential set-up going forward.
That’s all for now. I hope these help you out as we head into the next week of summer trading.