Strong Stock Getting Stronger NVDA Rallies its Way Back to the Highs
Each week for members, I publish the results of a “Strong Stock Getting Stronger” stock scan.
NVIDIA (NVDA) consistently ranked in the top of that list for many, many weeks.
Let’s take a look at the progress of this “strong stock” and the recent rally back to the high, focusing on two strong recent retracement trades.
When you’re swing trading, you want to find candidates that look like this:
Rising Trend, Rising Moving Averages, Rising/High Momentum and Volume, “Price Stability”
Though we saw stability for most of 2016, we started to see a surge in momentum and volume in November and now January.
Both of these instances – with green vertical highlights – set in motion a PULLBACK or retracement trade.
See our Perfect Pullback Trading Tactics for a specific strategy on how to identify and trade these efficient and (relatively) easy set-ups.
December saw two mini-pullbacks to the rising 20 day EMA, both of which were “perfect” pullback candidates.
You can see what happened next as buyers received steady profits all the way into January.
From there, another pullback took price once again to the rising 20 day EMA for another perfect pullback.
You can also see the profits buyers enjoyed by taking the risk – and the trade.
We are constantly looking to trade “strong stocks getting stronger” and again list these in scans for members.
Study the example above in NVIDIA (NVDA) and be on the lookout for similar candidates – and pullbacks.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey’s 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).”