Five Strong Stocks Holding Up Surprisingly Well During the Pullback

Mar 10, 2015: 9:16 AM CST

During market pullbacks, it’s often helpful to step inside the market to see which stocks are showing relative strength, or “holding their own” against the tide of selling in the broader market.

Let’s pinpoint five strong stocks going toe-to-toe with the sellers – these shall warrant our attention as buy candidates when the tide of selling stops.

Here’s a quick look at these five selected names:

While the market itself has retraced from its prior high, these stocks have either made new swing highs.

These are strong stocks and compelling candidates by themselves, but it may be helpful to put them on a watchlist for potential buy (swing trade) candidates once the market finds support and rallies to end the current sell-swing retracement.

Here’s a quick snapshot of three of these stocks along with key levels to watch:Mallinckrodt (MNK):

Mallinckrodt is an interesting company and I’m assuming most of us haven’t traded or studied it much.

It’s a strong stock getting stronger, as evidenced from the reversal up from the $70 per share August low.

Buyers have stepped in each time as price touched the rising 20 (green) or 50 (blue) day EMA as shown.

Now, we see a new high on a divergence with reversal candles – a caution (“do not buy here”) signal.

Watch this stock for another possible pullback and potential trade entry near $117.

Macerich (MAC):

Similarly, MAC reversed from a Double Bottom price pattern in September and we’ve seen strength in this name ever since the low.

A larger Bull Flag triggered as price broke higher and volume surged at the beginning of March.

It’s perhaps too late to buy safely here, but may be a candidate on another pullback/retracement.

Urban Outfitters (URBN):

Urban (URBN) is a fresh stock to hit our scan as shares broke powerfully to new highs – above the August peak.

The “gap and trend” action shows relative strength, especially in a down (sell) market today.

Again, it’s probably too late to buy safely here, but use it as a candidate for future entries on a retracement.

Conduct your own analysis and develop trading plans (entries, triggers, targets, stops) on these and similar names “holding their own” during a broader market sell-swing.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Comments

2 Responses to “Five Strong Stocks Holding Up Surprisingly Well During the Pullback”

  1. Maxwell Says:

    Yes, I am also impressed with how well they are holding up but still I prefer trading on common pairs like EUR/USD and for me that is best more so because of OctaFX as they have got world’s lowest spread of just 0.2 petite and what makes it best is that there is no hidden commission or fees so with just this small spread we can make great profits which can be withdrawn easily too due to instant payments system that is set.

  2. Shraddha Says:

    It’s interesting to see them holding so very well during the pullback, I thought things might be different. I usually focus on keeping things straight forward since that’s how we could get success and positive results. I get support with OctaFX broker using their rebate program where I am given 50% back on all trading orders which includes the losing trade too, so that’s something seriously special and helps with trading without facing all that much trouble or difficulty anytime.