Five Uptrending Stocks at New 52 Week Highs to Start July

Jul 2, 2013: 1:01 PM CST

A quick mid-day scan on July 2nd found 116 NYSE stocks achieving fresh new 52-week highs – here is a sample of five of these leading stocks and a quick glance at their daily chart with an emphasis on the uptrend and breakout that brought these stocks to the forefront of the scan.

We’ll also note similarities in these five names and note price levels to watch depending on whether the breakout continues or a retracement opportunity develops.

TD Ameritrade (AMTD) Daily Chart:

Ameritrade AMTD Scan for Stocks at New 52 week highs

For TD Ameritrade shares, the stock has been strongly uptrending since the $14.50 low (corresponding with the SP500 swing low) in November 2012 toward today’s 52-week breakout high above $24.50 per share.

As we’ll see in most of these five names, daily chart reversal candles and an ongoing negative momentum divergence suggests caution and the preference for waiting to trade a retracement as opposed to jumping in on the (weak) breakout to new highs at least in TD Ameritrade shares.

Simple focal points to watch as reference levels will be the $24.00 per share level and the rising 20 day EMA into $23.84 (intersecting $24.00).

Look for a similar “bounce” off the rising 20d EMA as was the case June 24th or else look for a breakdown and close under the rising daily average to set up a bearish play toward the rising 50d EMA and lower Bollinger Band intersecting $23.00 per share.

Amazon.com (AMZN) Daily Chart:

Amazon AMZN Scan for Stocks at new 52 week highs

Our last update with Amazon discussed the inflection point in May and the possibility for a breakout (which occurred) or else a continuation swing within the boundaries of the falling trendlines as drawn.

The strong two-day breakout set the stage for a retest of the 2013 highs and two “retracements” or flags back to the falling trendline support level and particularly the rising 20 day EMA set-up low-risk bullish support/retracement trades.

Today’s continuation of the rally from the $270 reversal candle and confluence support low resulted in a breakout to new highs and an update of the key levels to watch for traders/investors.

The $283 per share horizontal support level serves as a critical support inflection level that will determine whether to take stop-losses or play bearishly short-term (on a breakdown) or else continue trading for higher prices or retracements that develop above $285 on a pathway toward the next “round number” target into $300 per share.

Ford Motor Company (F) Daily Chart:

F Ford Stock at New 52 Week High

While the share price remains ‘low’ relative to other leading stocks, investors have enjoyed a larger than average percentage return from the recent movement from $10 to the current 52-week high today above $16.00 per share and the previous May high.

I drew two larger “Bull Flags” or retracement patterns to highlight the lower-risk opportunities to play (position or trade) a stock in a pro-trending rally phase, although trading a pure breakout recently above the $14.25 high from January did result in a stellar swing trading profit.

Continue monitoring the breakout above the $16.00 per share level with respect to a strong rally that brought us to this point and the “open air” under $16 to the next lower confluence support level into $15.50 (trendline and rising 20d EMA).

Gap Inc (GPS) Daily Chart:

Gap GPS Stocks at New 52 Week Highs

The retail sector in general has been strong, and we see Gap Inc (GPS) stock breaking to a fresh new 52-week high to continue the uptrend established from December 2012 and reaffirmed with the March 2013 breakout.

Price completed five retracement or ‘flag’ swing trading opportunities off the support of the rising 20 day EMA and price has now compressed around the $41.00 “value area” or midpoint of a compression pattern.

Today’s pro-trend continuation and breakout continued from yesterday’s breakthrough above the $42.50 level and we’re carefully watching for additional upside price action as price moves away from the $42.50 breakout level (short-sellers buy-back to cover and buyers step in to buy or add to existing positions – as is the case with any successful breakout event).

Gap is bullish unless we see a sudden ‘failure’ and reversal back under the breakout point which could carry price to the next lower support target – a retracement – of the rising 20d EMA just under $42.00 per share.

Finally, Tesla Motors (TSLA) Daily Chart:

Tesla Motors TSLA Scan for Stocks at new 52 week highs

I highlighted the breakout in Tesla (TSLA) shares for yesterday’s stock update and the breakout event continued through today’s (July 2nd) session, though we see a clear caution sign developing from the intraday reversal and – so far – bearish candle developing into $120.

While the trend continues and Tesla (TSLA) has completed three retracement or bull flag opportunities, we see price extended from the rising 20 day EMA on a sustained rally where it’s generally “too late” to play a clean/low-risk breakout (which triggered yesterday) but of course not at all safe to play a retracement (price needs to trade lower to generate a retracement entry).

Though price accelerated in May along with volume, price continued higher yet volume trailed lower all the way to the present price breakthrough to the new 52-week (and all-time) high for the stock.

May 2013 itself should remind us why it’s safer to trade with a trend than against it – note the two large gaps and the non-stop upward price impulse as investors along with traders rushed to get in on the upward price action and media attention.

Summary Thoughts:

Continue watching these five selected names along with any of the other 100+ names trading at new 52 week highs.

One area to watch is general Financials (popular ETF symbol XLF) and especially Regional Banks (popular ETF symbol KRE).

In today’s simple “show me NYSE stocks at new 52-week highs,” I added a filter of “show me only names with 20 day average volume greater than 2,000,000 shares per day and 38 stocks appeared on the list.

Of these 38 moderate/high average volume stocks on the NYSE making new 52 week highs, 21 of them (55%) were from the broader Financial Sector (out of nine major sectors).

Some of these names included Capitol One Financial Group (COF), eTrade Financial (ETFC), Regions Bank (RF), Charles Schwab (SCHW) to name a few.

Note that three of these names are popular brokerage firms (eTrade, Charles Schwab, and Ameritrade).

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Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

Corey’s new book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

4 Comments

4 Responses to “Five Uptrending Stocks at New 52 Week Highs to Start July”

  1. theyenguy Says:

    The stocks you show should have been sold short today as Reuters reports Greece has 3 days to deliver or face consequences, EU officials relate. Greece has three days to reassure its lenders it can deliver on conditions attached to its international bailout in order to receive the next tranche of aid, four euro zone officials said on Tuesday.

    Five indicators suggest that the direction of the stock market is once again down.

    First, closed end funds seen, led by closed end debt, CSQ, seen in this Finviz Screener, traded lower, despite, GBCI, FMER, PBCT, RNST, FFIN, and ZION, taking Regional Banks, KRE, racing to a new high.

    Second, the US Dollar, $USD, traded higher, and the individual world currencies, led by the Japanese Yen, FXY, trading lower, which closed down 1.0% at 97.25. The lower Yen, boosted the Nikkei, NKY, slightly higher.

    Third, the BRICS, EEB, leading the Emerging Markets, EEM, lower. The National Bank of Greece, NBG, led Emerging Markets Financials, EMFN, and the Emerging Markets Dividends, EDIV, lower. Global Utilities, DBU, Global Industrials Producers, FXR, and Foreign Airlines, traded lower.

    Fourth, a resumed downtrend in European Stocks, VGK.

    Five Regional Airlines trading lower on a higher price of Oil, USO.

    BRICS, EEB, trading lower included

    EWZ -3.3

    RSX -2.2

    INP -1.1

    YAO -1.1

    Emerging Market Nations, EEM, trading lower included,

    GREK -2.9

    ECH -2.1

    IDX -1.9

    TUR -1.5

    EPU -1.4

    EWW -1.4

    ARGT -1.3

    European Stocks, VGK, trading lower included

    GREK -2.9

    EWI -1.9

    EWG -1.6

    EIRL -1.1

    EWP -1.0

    EWY -1.5

    ARGT -1.3

    EWO -1.0

    Gold Miners, GDX, and Silver Miners, SIL, traded lower, on today’s higher US Dollar, $USD.

    Yes, the trend down has resumed, as the Interest Rate on the US Ten Year Note, ^TNX, to 2.01% on May 24, 2013, constituted an “extinction event”, that is a cataclysm, which literally destroyed the investment choice offered by bankers as the way of life, and terminated the paradigm of Liberalism. Jesus Christ is operating at the helm of the Economy of God, Ephesians 1:10, and has pivoting the world into the paradigm of Authoritarianism, where the diktat of nannycrats is the now the way of life. Fiat money died, and diktat money has been coming to life.

    Please consider the corollaries from the Dispensation Economics Manifest … http://theyenguy.wordpress.com… … that flow from the biblical revelation that Jesus Christ, is operating as steward in dispensation, that is the household management plan of God to both complete and fulfill all things in every age, epoch, era and time period.

    Liberalism’s Banker regime (which was based upon democratic nation states) had a policy of investment choice. The dynamo was one monetary interventionism, consisting of POMO, Quantitative Easing, Central Bank Interest Rate Reductions, Kuroda Abenomics, and Global ZIRP, which powered up corporate profit and global growth … and came with credit schemes, such as free trade agreements, financial deregulation, leveraged buyouts, nation investment, currency carry trade investing, securitization of debt, financialization of stocks and ETFs, and dollarization … where Milton Friedman’s Free To Choose concept of floating currencies and abandonment of the gold standard, established the rule underlying all investing, providing for the fiat money system.

    Authoritarianism’s Beast regime (is based upon statist regional governance) has a policy of diktat. The dynamo is one totalitarian collectivism consisting of public private partnerships for oversight of the factors of production, banking, commerce and trade, which powers up regional security, stability and sustainability … and comes with debt servitude schemes, such as regional framework agreements, bank deposits bailins, new taxes, privatizations, capital controls, and austerity measures … where Nannycrats establish the rule underlying all diktat, providing for the diktat money system.

  2. What Strength in Retail Hints about the Broader Stock Market | Afraid to Trade.com Blog Says:

    […] Other popular names not in the “Top Ten XRT Holdings” but still in the fund include Amazon.com (AMZN), Netflix (NFLX), Gap (GPS), and Autozone (AZO) – all of which similarly broke to new 52-week or all-time highs this week. […]

  3. What Strength in Retail Hints about the Broader Stock Market Says:

    […] Other popular names not in the “Top Ten XRT Holdings” but still in the fund include Amazon.com (AMZN), Netflix (NFLX), Gap (GPS), and Autozone (AZO) – all of which similarly broke to new 52-week or all-time highs this week. […]

  4. What Strength in Retail Hints about the Broader Stock Market Says:

    […] Other popular names not in the “Top Ten XRT Holdings” but still in the fund include Amazon.com (AMZN), Netflix (NFLX), Gap (GPS), and Autozone (AZO) – all of which similarly broke to new 52-week or all-time highs this week. […]