Software has been a top performing tech group in 2015 and unlike the other strong sub sectors within tech, it has recaptured leadership status. We had both the biotechs and semiconductors fall out of favor and for the time being remain subdued. Software has fought back and for that it must be given credit. Therefore one would be wise to focus on longs within the sector. Other names that have acted well recently in the group are RHT MSFT and NUAN today. Sure there have been some laggards like security names PANW FTNT AVG CYBR to name a few. Below we look at names behaving nicely in software.
In our Friday 11/6 Game Plan we looked at RNG. RNG is an enterprise software play higher now by more than 50% and this week thus far it is higher by more than 7.5% and is now closing in on all time highs made the week ending 2/28/14 of 23.65. A move above 23.75 can now be added to in an 18 month long cup base trigger. With todays 5% advance it is now firmly back above its 21.04 cup base trigger taken out on 11/3 after a well received earnings report and higher by more than 5% from the highlighted entry. Below is how the idea was presented in our 11/6 Game Plan.
Stocks that can be bought after testing recent cup base triggers are RNG. RNG is a recent IPO in the strong software group and is higher by 42% YTD and 62% over the last one year period. It has produced 4 straight powerful earnings reaction all higher by 10.5, 10, 3.2 and 8.3% on 11/3, 7/31, 4/29 and 2/4. Its current 2 week losing streak should be stopped as it is higher 15% thus far. The round numbers have come into play here with the 10 figure providing a nice bounce the week ending 10/17/14 and the 20 figure recorded no CLOSES above on a weekly basis between weeks ending 7/31-8/21 all traded above or to 20 intraweek. The stock took out a 21.04 cup base trigger Tuesday and enter here on a pullback. One can add to above a cup base trigger engulfing the whole pattern at 23.75 which would be an all time high.