Markets seem to be finding their footing recently even in the face of some tough events. Tuesday it ignored overnight North Korea and news of the Harvey situation turning worse. There is still some work to do, but some names look to be putting in decent bottoming formations. To be clear I generally like to buy strength but the name we will examine today has been a laggard, but the charts complexion is looking brighter. TSCO has traded between the round 50 and 60 numbers the last 5 months with one CLOSE below 50 on 7/12 by one penny. Directly below is how we looked at the name in our Thursday 8/3 Game Plan and then in the last paragraph we delve into its bullish inverse head and shoulders pattern taken out last Friday.
Stocks that can be bought after big bullish trend changes are TSCO. TSCO is a specialty retail play lower by 27% YTD and 39% over the last one year period and sports a dividend yield of 1.9%. Earnings have been mixed with gains of 7.7 and 1.8% on 7/27 and 2/2 and losses of 4.8 and 3.5% on 4/27 and 10/20. The stock is on a current 3 week winning streak higher by nearly 11% and the week ending 7/28 was accompanied by huge volume, the third largest in the last years. To be balanced this name lost ground 20 of 30 weeks ending between 12/16/16-7/7 and is presently 40% off most recent 52 week highs. TSCO did bounce nicely off the very round 50 number in early July and recouped its 50 day SMA for the first time in 6 months last week. Enter at 54.75 (the stop was just missed being taken out on 8/15 but CLOSED 4 pennies above).
Trigger TSCO 54.75. Stop 52.55.
Looking at a present view on TSCO it is now lower by 21% YTD and 30% over the last one year period and sports a dividend yield of 1.8%. It is now higher 8 of the last 9 weeks including the week ending 7/28 which jumped 7.6% and the last two have gained by a combined 11.2%. Notice the week ending 7/14 recorded a spinning top candle, which often indicates an exhaustion of the prior trend, with a nice bounce off the round 50 number. The name is still a laggard off 32% from most recent 52 week highs, but has some encouraging signs. Volume trends are bullish and it is currently testing a good looking inverse bullish head and shoulders breakout from 8/25 which rose 3.3%. The breakout has a measured move to 66.
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Markets seem to be finding their footing recently even in the face of some tough events. Tuesday it ignored overnight North Korea and news of the Harvey situation turning worse. There is still some work to do, but some names look to be putting in decent bottoming formations. To be clear I generally like to buy strength but the name we will examine today has been a laggard, but the charts complexion is looking brighter. TSCO has traded between the round 50 and 60 numbers the last 5 months with one CLOSE below 50 on 7/12 by one penny. Directly below is how we looked at the name in our Thursday 8/3 Game Plan and then in the last paragraph we delve into its bullish inverse head and shoulders pattern taken out last Friday.
Stocks that can be bought after big bullish trend changes are TSCO. TSCO is a specialty retail play lower by 27% YTD and 39% over the last one year period and sports a dividend yield of 1.9%. Earnings have been mixed with gains of 7.7 and 1.8% on 7/27 and 2/2 and losses of 4.8 and 3.5% on 4/27 and 10/20. The stock is on a current 3 week winning streak higher by nearly 11% and the week ending 7/28 was accompanied by huge volume, the third largest in the last years. To be balanced this name lost ground 20 of 30 weeks ending between 12/16/16-7/7 and is presently 40% off most recent 52 week highs. TSCO did bounce nicely off the very round 50 number in early July and recouped its 50 day SMA for the first time in 6 months last week. Enter at 54.75 (the stop was just missed being taken out on 8/15 but CLOSED 4 pennies above).
Trigger TSCO 54.75. Stop 52.55.
Looking at a present view on TSCO it is now lower by 21% YTD and 30% over the last one year period and sports a dividend yield of 1.8%. It is now higher 8 of the last 9 weeks including the week ending 7/28 which jumped 7.6% and the last two have gained by a combined 11.2%. Notice the week ending 7/14 recorded a spinning top candle, which often indicates an exhaustion of the prior trend, with a nice bounce off the round 50 number. The name is still a laggard off 32% from most recent 52 week highs, but has some encouraging signs. Volume trends are bullish and it is currently testing a good looking inverse bullish head and shoulders breakout from 8/25 which rose 3.3%. The breakout has a measured move to 66.
If you liked what you read why not take a 2 week FREE trial at www.chartsmarter.com.