We have been pounding the table that in order for this rally to continue, tech must participate. There has been very little overall evidence of that, but some small greenshoots are developing. Software is beginning to firm (would love for semis to engage) and that will be a welcome signs for the bulls. Below we look at two recent examples, precisely how they were written about in this Tuesday Game Plan. Both have outperformed Wednesday thus far.
NOW as of this writing is grappling with the round 70 number, but the chart displays the power of the gap fill. The trigger was just missed being hit, but it has acted well after Mondays bullish inverted hammer candle which was an engulfing candle as well.
Stocks that can be bought after recent gap fills are NOW. NOW is a cloud play lower by 22% YTD and 9% over the last one year period. Earnings have been well received with gains of 14.1, 6.7 and 3.9% on 4/21, 10/22 and 730 and fell 15.7% on 1/28. The stock is lower the last 2 weeks dropping 8%, but it did stay within the week ending 4/22’s range. It has recorded a strong weekly return the last 3 months and one should expect on sometime in May to continue the trend. NOW rose 15.5, 8.3 and 9.3% weeks ending 4/22, 3/11 and 2/19. Being 26% off recent 52 week highs and higher 8 of the last 12 weeks we like the risk/reward following last Fridays gap fill from 4/20. Enter on a slight pullback at 67.