Power Stock Setups
February 14, 2021
Below are various names that caught our eye during our research process that might be worth a closer look. It is certainly not an exhaustive list, but should give plenty of names to review and develop a plan around based on your trading style and strategies.
Major high pre-breakout setups and current day Breaks
WFG WY DE BCRX BTU EGLE NBR SBLK HWM FOXA
Minor breakouts in a larger range or consolidation in an uptrend
AU ARES NMIH ACET SLB AVGO BX SFM BJ
Breakout setup from a consolidation after a downtrend
ORLY LAD PII
Pullback in Trend
Pullback to potential support zones in an established trend
EXPE CTVA TSCO RJF
RSI Bull Range Test
Daily or Weekly pulling back to test RSI 40 while in a Bull Range
PG MTD SEE TPX RACE UNFI
RSI Bull Range Shift
Emerging trend with RSI setup to move over 60 after a Bear Range
WPM STLD DRI DDOG MBUU MCFT IMKTA
Extreme oversold showing short term change in character
All downside setups for near term potential weakness.
ZI TGT MNST WCN FNF MTCH PLD ASML CLAR
Below are various names that caught out eye during our research process that might be worth a closer look. It is certainly not an exhaustive list, but should give plenty of names to review and develop a plan around based on your trading style and strategies.
John Deere is in a long consolidation of the strong move off the pandemic lows. It does have earnings later this week, so take that into consideration, but looking at the options flow, so far it leans heavily to the bullish side. The weekly chart looks set up for a major breakout after the trend line break this week. Weekly RSI bull range has held well the entire consolidation. Daily moved into a fresh RSI bull range on the early year run back toward the highs. It also held very well as the markets sold off on Thursday and Friday. The bottom left chart shows during the market weakness end of week it came right back to its rising 5 day moving average (yellow) at the day’s lows. On the right we see the comparative to the SPY continues to run and break through notable levels.
ARES is in a very strong long-term uptrend. It tested the MA bands recently and rallied strong from there as RSI never reached 40 to test the bull range. On the daily it’s working on the right side of the base and closed lower on Friday after attempting an internal breakout over $84. Relative strength has ramped up over the past two weeks as shown by the chart in the bottom right. The VWAP from all time highs acted as support over the past five sessions.
Expedia Group is currently at a weekly all time high close. The breakout was erased on Friday as stocks sold off but held right at the breakout level and close up 2% from the low of the day. The daily shows a nice and clean RSI bull range that held throughout consolidation. The same goes for the weekly. Relative strength has ramped up on the right side of the base and was clear prior to the breakout. The re-test of the highs offers a potential entry point for those that wanted to buy at all time highs, but didn’t.
Eagle Bulk Shipping is another small shipper taking advantage of the global supply chain issues. Earnings coming early next month gives time for a breakout here if buyers can push through the upper rail. Daily and Weekly both on RSI bull ranges with a strong run to highs over the last month. Friday it relented a bit and might be worth seeing if it sets up with a flag or pennant type pattern before attempting a breakout. The weekly SPY relative chart shows it working on the second breakout there too.Then dropping down to the 65minute chart we can see itis well above the 5day moving average and could use some consolidation for that and the VWAP anchored on the low of the last quarter (blue). A test of that 5day or the 9day moving average (orange) on the daily chart would be a good spot to watch on any weakness. Of course, it could always just power through after a day or two of churning up here.
Star Bulk Carriers broke out of its base last Wednesday. RSI tested 40 on the daily perfectly within the base just below the MA bands. After a reversal at the 24 level, it gapped higher two days later to new highs. The weekly shows a clear bull range and a base after a strong uptrend. That’s completely normal and healthy for a stock especially amid overall market weakness. SBLK is above all significant VWAPs showing that buyers are in control. This is a company that appears to be turning things around and is outperforming the market after a downtrend that started in 2007.
Fox Corporation is another breakout attempt after strong reaction to earnings, but market weakness got the best of it end of the week here too. It has not been a great breakout market recently, but if there are strong buyers they can work just fine. The volume footprint here has been strong since moving off the weekly range lows. Both levels are in RSI bull ranges with the daily hitting the nitrous while the weekly just working its RSI over 60 again. The relative comps on the bottom right have been strong and breaking levels on all 3 major comparisons. From an entry perspective, this is another that could form a high and tight flag to recharge before attempting the major weekly breakout or it could retrace back toward the rising 5day (yellow bottom left), the rising 9day (orange top left) or deeper to the AVWAP (blue bottom left) that will play some catchup in coming days. Any of these would be good places to see if buyers show up.
BJ’s Wholesale Club is trying to reverse its pullback and set up for a potential internal breakout.The weekly trend remains intact after the test of it and the MA bands on the gap down move last month. The RSI bull range held and fired a RSI positive reversal and is not working to get back above the 9day average on the weekly. The daily is still in a RSI bear range, but is making the right moves since the lows. Price on the daily has broken the downtrend off the highs and is currently challenging the big breakdown level. A move above could help with a RSI bull range shift and get the next leg going here. As we drop down to the 65minute time frame on the bottom two charts, on the left we can see it is in a RSI bull range and above rising MA bands as it clears the base. On the right we can see it is also above thte rising 5day moving average and the AVWAP off the recent lows, but now is butted right up against the AVWAP off the highs. This another reason to pay attention to this level for more clues. A move over it would be worth a strong look.
Polaris is shaping up as a nice reversal plat at it moves over the double bottom breakout level this week and holds into the weakness. Daily moved into a Fresh RSI bull range with the 9sma on RSI (Nitrous Signal) is about to cross through 60 and fire. Weekly is still in a bear range, but he arrow shows RSI holding 40 on the last attempt and now moving over the 50 level as price challenges the long down trendline. The relative comp chart turned up late last year and broke its trendline ahead of price. If price can get there it would also be clearing the 200sma hurdle at the same time. On the lower 65minute time fram we can see price is consolidating in a pennant above the 5day moving average and is currently above both the AVWAPs from the recent quarterly highs and recent lows. A move over 124 or a pullback to the top of the MA bands on the daily are two spots I would be watching for guidance.
Prologis is one here that looks better on the short side and we don’t have earnings just ahead like many in the list above. The dail chart couldn’t bounce at all during the recent market attempt and the RSI rolled over and is now back below 40 level. The weekly is still in a bull range, but has room back toward or bleow the MA bands for a test. Moving down to the bottom left chart we see it could also make a trip back to test the 200day moving average and the September highs near 137 or so. On the 65minute level we can see falling AVWAP from the recent highs and a falling 5day moving average. A weak bounce back to test these would be a good spot versus a move over the recent range highs. If it just falls from here can play it against a close over the AVWAP from those highs as it has demonstrated its significance a few times already.
Clarus Corporation is a good example of a short setup from RSI rules. The daily has rolled over in a bear range below RSI 50 and is now challenging 40 again as price got capped at the falling MA bands and breaking the lows of the recent range as the week closed. The weekly chart doesn’t look much better. While it is still testing its RSI bull range, the bounce got very little reaction out of RSI and price was capped right at the lower MA band. This bull range test could still hold, but so far the chart is leaning the other way. The 65minunte chart on the bottom right shows price trying to hold the AVWAP off the lows, so best-case scenario is a retest of the 5day or the volume node around 23ish that fails to enter and then stops above the daily MA bands.
The charts and tickers above are for educational purposes and are not recommendations to do anything. This is just to help show you what we see and then let you take it from there and do your own due diligence. Either build your own trade plan or get with your advisor or broker form one before considering any ideas above.