Scanning for Stocks with the Highest Consecutive Up Closes in an Uptrend

Jul 17, 2013: 12:56 PM CST

With the SP500 recently closing up eight sessions in a row, let’s scan for the stocks in the SP500 that also showed the greatest number of consecutive daily and weekly chart closes to the upside to continue an uptrend in a bull market.

These stocks may not otherwise show up on other types of scans you’re using.

We’ll start with the stronger stocks showing the most consecutive WEEKLY up-closes in a row:

Weekly Closes Up

Using the TradeStation scanner with closing data from July 16th, we see the following nine stocks have closed at least 5 weeks in a row to the upside.

Two stocks in the SP500 have closed seven weeks in a row to the upside:

Flir Systems (FLIR) and Gamestop (GME).

Here is a quick overview of these top nine stocks side-by-side:

Weekly Consecutive Up Closes Stock Scan

While the consecutive weekly up-closes show persistent strength during ongoing uptrends in all these stocks, a shorter term or swing trader may be more interested in consecutive up-closes on a Daily Chart basis, as seen in the scan below:

Weekly Up Closes

Similarly, two stocks have closed nine days in a row higher (as of the close July 16):

Quanta Services (PWR) and Intuit Inc (INTU).

A quick side-by-side comparison of these names shows uptrends, but not as persistent as the stocks in the Weekly Scan:

Daily Consecutive Up Closes to Continue Bull Market Uptrend

As is the case with similar scans that show persistnce of trend or sustained price impulse movement, there are generally two ways to use this scan to find potential trading candidates:

  • Aggressive traders will look to “fade” or short an overextended stock to play for a return to a rising moving average (short-term ‘scalp’).
  • Pro-trend traders will keep these names on a watch-list and may look to enter a swing trade on a retracement (‘flag’) to a rising moving average or Fibonacci Retracement Level.

Either way you choose, use these stocks as a departure point for additional research and trade planning.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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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).

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