Power Stock Setups

March 21, 2022

Chart Reviews

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.

Ticker: $DXCM

Strong dail chart this week moving over the volume zone and clearing previous highs on Friday. Relative comparatives are turning well as it nears the 200sma that is surprisingly still rising a bit. The breakout put it into a vacuum up to the purple line if it can get through that 200sma. Weekly put in a solid bullish engulfing to move back up through the MA bands.  Dropping down to the 65 minute chart you can see it has ran hard the last few days moving well above the 5 day moving average (yellow) and both AVWAPs from the quarterly highs and lows. Any pullback between 450 and those averages is worth watching for a entry.

Ticker: $FOUR

Shift4 Payments is working on a downtrend reversal with its first higher high in a while after a failed breakdown early month.  It was a strong week, but it wouldn’t take much more to clear the volume early and move into a Kirby up near the high 70s which would be a big move.  On the weekly it put in a very strong second week in a row putting it right up to the weekly tails and he underside of the MA bands. It will take some work to get this up into an RSI bull range, but the daily is trying to shift now.  The bottom two charts are the 65min intraday views. the RSI is high, which is a good sign but give some potential for pullbacks to test the RSI bull range. The chart on the right gives the 5day and AVWAPs for areas to watch for potential support on any retracing before breaking through the volume zone.

Ticker: $GLOB

Globant is working on shifting to a new RSI bull range as it clears the VPOC and downtrend line to close the week. It hasn’t cleared the entire volume area which could catapult it up near 100 if it does. Some consolidation here would be nice, but looking at that 65min RSI setup, while high, holding up here like this hints another strong pop may be coming before working off these high levels.  Now, even when the RSI comes down on the 65min level, that doesn’t mean price will give much, RSI can diverge awhile as the daily gets deeper into it own RSI bull range move as it is just now crossing and has plenty of room higher.  The weekly chart held at the RSI bull range test a few times as this materialized. It also held near the previous congestion area at the top of value here on this chart. 

Ticker: $OSH

Oak Street Health is a healthcare services company with a fairly short history, but putting in some moves on the daily that are notable. After a long downtrend and washout move into late January the chart bounced around building a bottom which it clear on earnings and backtested early this week. The daily closed the week breaking the more aggressive down trendline and the MA bands.  If it can get continuation next week to clear the volume zone it could move toward the waterfall level above from 30-33ish. Relative comparative is breaking a long downtrend as well. Looking at the 65 minute chart, using the 5day moving average as a guide for now then move up to the daily MA bands as it gets moving.

Ticker: $KR

Kroger has definitely made a big move recently off the earnings reaction, but it looks like it is setting up for more. If the flag is half staff, it could be a heck of a move. This one is also getting so tight, it shouldn’t take much risk to find out. This could actually be a look both ways play where you play both sides with options, but for today let’s stick with taking advantage of whichever rail it breaks first.  Weekly trend is still stron gand RSI is not particularly overbought on this level or the daily.  For now the previous chart move favors a break higher and the compression could lead to a strong unwind back up near that tail first, then the measured move well above those highs.

Ticker: $NOG

Northern Oil and Gas is a small cap energy name back at highs looking to clear the backtest of the handle pattern on the weekly.  A clean breakout here would have plenty of room to expand on both price and RSI. Both daily and weekly have remained in RSI bull ranges, but not really been a runner in the energy space as of yet.

Ticker: $AOSL

Alpha Omega Semiconductor is breaking a nice symmetrical triangle that formed above the weekly breakout level. Strong charts all around. Daily shows RSI moving back over the 60 level after its successful range test recently. The weekly RSI bull range never really got challenged. Relative comparative charts are looking to break out here ahead of price which is always good to see. Intraday the 5 day moving average and AVWAPs are what we want to stay above if we get any consolidation over the short term. A decisive break back below the lower rail would be the wrong spot.

Ticker: $OMI

Owens & Minor is a medical distributor on the RS movers list sporting a chart that doesn’t need much marking up. Very well defined inverse head and shoulder continuation pattern nearing its neckline. Daily and weekly RSI are in bull ranges and plenty of room higher if needed. The 65min chart shows it is above the 5 day moving average and the AVWAPs that we like to watch for short term guidance while the longer term charts play out (or not).

Ticker: $POWI

Power Integrations is a small cap mover that is breaking an inverse head and shoulders  pattern as the daily RSI moves higher after the bull range test. Weekly chart also looks to be moving towards a RSI bull range shift, but is not there yet.  From a relative comparative view, it is breaking downtrends on this move out of the flag and back over the 200sma.  As long as it can stay over the 8ema on the bottom chart on any pullback it should continue up to challenge the prebious highs.

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.