Tyler unearths 3 stocks that have not only sold off more than 50% from their previous highs, but have also built large bases & have just begun to move powerfully out of those bases. Buy signals that as Tyler explains below give an investor the opportunity to buy wholesale – Money Talks
In this week’s issue:-
Weekly Commentary
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Strategy of the Week
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Stocks That Meet The Featured Strategy
WEEKLY COMMENTARYStockscores Market Minutes Video
This week’s Market Minutes video is titled, how to get more bang for your buck. It focuses on earning a higher percentage return on your trades without taking more risk. Plus, the regular weekly market analysis,View the video by clicking here.
Upcoming Events
I will be on the Talk to the Experts radio show in Edmonton on Saturday March 8th at 11:00 MT (630 CHED).
Stockscores events planned for Calgary, Vancouver and Surry in April. More details next week but you can register now at this page.
Free refresher classes are being planned for April as well, anyone that has completed one of the Stockscores Trader Training courses in the past can attend. Register at this page. for those events as well. These are only open to past students who must register in advance to attend.
There is, however, a fine line between buying the stock at the right time and getting in too late. Whether you are a long term trader or a very short term active trader, chasing a stock higher can lead to frustration as you get stopped out on the inevitable pull back.
Buying strength is best if you are doing it at the earliest stage of strength.
When analyzing a stock that you are considering for purchase, ask yourself a simple but essential question. “Should I already be in this stock?”
If you look at the chart and can see other recent buy signals that have resulted in moves higher, you have to question whether you are getting in to the stock with the most well informed investors or if you are buying with the general public. Are you buying wholesale, or retail?
Whether I am buying a stock to hold for months or taking a day trade to hold for a few hours, I want to be part of that wholesale group that is buying the stock just as it is starting to behave abnormally and make gains. The higher the stock rises, the farther it gets from support and the closer it gets to resistance. That means as the stock climbs, the potential reward for the risk of the trade falls.
I often see traders take entry signals that are valid if they take a very short term view of the chart. However, if they took a step back and looked at the bigger picture, they would see that the trend started some time ago and they are jumping on the bandwagon late.
This is why it is important to look at different time frames on the chart. If you do your analysis on daily charts, make sure you also look at the weekly chart. If you day trade off of the 2 minute chart, be sure to check the 15 or 30 minute chart to see if the strength you are following is the initial pop or if the trend is already well under way.
Doing this only takes seconds but the impact on performance can be massive. Just ask yourself the simple question, “Should I already be in this stock?”
This week, I ran my scan to find the gainers for the week and then inspected their weekly charts to see which ones have breaks from predictive chart patterns on the three year weekly charts. I focused my scan on the Canadian market because that market has been producing some of the best candidates lately. Here are three stocks to consider:
A lot of the Uranium stocks were up this week, T.CCO is one of the larger and higher priced stocks in the group and it is breaking through long standing resistance at $24 this week. Rising bottoms in to the breakout tell us that investors are gaining optimism. Support at $23.25.
$3 resistance has been unbroken for over a year but the market was willing to take the stock up and through that price level this week with strong volume support. Looks like a good turnaround chart
T.BKX has been strong since the Fall of 2013 but has been trending sideways and building a base for the past 5 months. This week, the stock broke out of that sideways trading range and looks likely to continue its long term upward trend. Support at $1.60.
References
- Get the Stockscore on any of over 20,000 North American stocks.
- Background on the theories used by Stockscores.
- Strategies that can help you find new opportunities.
- Scan the market using extensive filter criteria.
- Build a portfolio of stocks and view a slide show of their charts.
- See which sectors are leading the market, and their components.
Disclaimer
This is not an investment advisory, and should not be used to make investment decisions. Information in Stockscores Perspectives is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The writers and editors of Perspectives may have positions in the stocks discussed above and may trade in the stocks mentioned. Don’t consider buying or selling any stock without conducting your own due diligence.
