Back to Back Follow Through Days

Above the 50 day

The Market:

The market staged an ugly reversal on Monday after gapping above the 50 day, only to be met with an unexpected follow through day yesterday. After regaining the 50 day moving average and seeing net new highs increase for a second day in a row the market picked up right where it left off with another follow through day today and day 3 of net new highs; something not seen since March.

Potential Leaders:

AGL, CELH, EVH, FNKO, GTLB, HALO, HRMY, LI, LNTH, OLPX, OPCH, PRVA

Many leading stocks made nice moves recently. While the market has been improving, buying breakouts still seems riskier than pullback buys.

Actionable Ideas:

OLPX – Failed Breakout Pullback –  ~$15.75
OLPX took out the prior highs of $17.37 from the left side high of its current base. Will be watching now for a to pullback to the 21 ema within 10 trading days.

OPCH - Failed Breakout Pullback –  ~$29.75
OPCH broke out last week on expanding volume. Will be watching now for a pullback to the 21 ema within 10 trading days from the breakout. OPCH has also formed a mini coil, but pullback buys still seem like the smarter choice in this environment.

LI – High Tight Flag - $41.49
LI continues to work on the flag of its high tight flag base. After running up 120% the 14% pullback is very mild and still well within the limits of a proper high tight flag.

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The content presented is for informational and educational purposes only. Nothing contained in this newsletter should be construed as financial advice or a recommendation to buy or sell any security. Please do your own due diligence or contact a licensed financial advisor as participating in the financial markets involves risk.