Power Stock Setups
March 14, 2022
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.
Deere has been in a large weekly range now for more than a year and is once again back at the upper rail. With the expected benefits from the commodity cycle, this base has been built in a weak market overall. It has shown relative strength versus the $SPY since the start of the year. Tested the bottom of the range near earnings and sprang right back to the top. It has succumb to some selling on rough market days, but if it can clear this upper rail it will be open range from here.On the weekly it has never lost the RSI bull range and found support in the MA bands when needed. The daily RSI still needs a range shift, but any strength from here should push it over the hump. The 65min chart shows its above the 5 day moving average and both AVWAPs from recent highs and low.
Regeneron weekly has been in a large pattern that started mid 2020 after the surge off the covid lows. Forming a cup with a sloppy handle potential off triangle. Friday put in what has the potential for a breakaway gap from both the recent tight range as well as the downtrend line off the highs. Follow through will be key, but it also pushed RSI back over 60 on this move. Weekly chart never lost the RSI bull range and is pushing higher as well. The bottom left chart shows the weekly relative comparative breaking out versus the SPY this week as well. From a trade perspective, with the breakout in play the 65min chart provides the best levels for potential stops, I would look just below the bottom arrow for a good spot.
United Rentals has been in a daily downtrend since November, but with Industrials hitting the screens, this one shows some potential. While the daily RSI is still in an RSI bear range, it has held above the 40 level the last 2 times we have tested the lows in price and is now back near the top of the range, near the VPOC and challenging the down trendline. Friday it started strong and go rejected, but if it can clear the VPOC in the coming days it could move a bit. The weekly is supportive after the RSI bull range surived the test as did the bottom of the price range. Weekly still has some work to do to clear the MA Bands and turn them back up. The 65min chart shows price oscillating around the AVWAPs and the 5day moving average preparing for the next move. One to keep an eye on if Industrials perform well.
Horizon Therapeutics is in the process of reversing its downtrend; forging higher highs and higher lows of the recent weeks. The breakdown gap was closed this week and price backed off, but didn’t fail during the market weakness ending the week. It currently sits in a fresh RSI bull range on the daily with the weekly coming off a bull range test. Still to be seen if it is a spike or a range shift to a bear range. How this reversal attempt goes will seal that fate. HZNP has shown a lot of relative strength off the January lows and the 65min RSI chart shows it working the RSI bull range here above the breakout level. The chart on the right gives the same time frame, but with the 5 day moving average and teh AVWAPs from the quarterly high and low which price is above all. Below the AVWAPs would be a decent shorter term tight stop, or below the daily MA bands for position traders.
TMobile is flaggin after its earnings gap and go. The daily is in an RSI bull range and tried to test the upper rail, but was rejected and formed a graestone doji. It may not be quite ready yet, but it has been building relative strength versus the $QQQ and $SPY and could move fast if it can clear the VPOC instead of dying on the doji.
Lithia is pulling back after its earnings surge and finding some footing near the 50% mark. RSI in a bull range and putting in a RSI Positive Reversal at the MA bands on the daily cahrt. The weekly price chart found support at the weekly RSI high and some congestion building a nice bottoming base it may now be trying to move out of. The end of the week action pushed this back and is now below a falling 5 day moving average, so you would want to see a move back over 329ish to be involved and cal work that versus 310ish for now.
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.