Three Suddenly Strong Stocks to Study

May 27, 2015: 11:43 AM CST

During recent stock scans, I came across three “Suddenly Strong” stocks I wanted to share with you.

These stocks recently surged to the top of the scanning charts due to recent breakouts in strong uptrends.

We’ll start with a familiar name, Netflix (NFLX):

The main reason for this scan is to find strong uptrending stocks that recently enjoyed a breakout impulse.

While we probably don’t want to jump in immediately into these names, we may want to hold on to them on a watchlist to buy on pullbacks.

Netflix (NFLX) actually enjoyed two upside break-away gaps where price continued trading higher.

Both gaps saw initial upside action and a small, flat pullback (trade entry) before surging higher.

We’re seeing another small gap up above $600 and a current pullback/sideways range near $620.

Should Netflix strengthen with another breakout, it would be a buy candidate (or on a pullback toward $600).

I just released a new “Trend Trader’s Perfect Pullback” Lesson Bundle you may find helpful for studying retracement strategies.

Next, Cablevision Systems (CVC):

With a breakout above a falling trendline in late April, CVC jumped to the top of the relative strength breakout list thanks to its second breakout – and surge – last week in May.

Shares skyrocketed to the $26.50 level and will likely be “pulling back” (retracing) as would be logical.

Again, it’s often safer to hold strong trending stocks on a watchlist and then enter on a pullback (just like we saw after the first breakout with a pullback to the $20.00 per share level – the 20 day EMA).

Finally, Syngenta (SYT):

Though higher priced than CVC, Syngenta (SYT) is more volatile and more “gappy” so it might not be a perfect candidate for many traders.

Still, it did make it to the top of the stock scan thanks to its two breakouts in May, surging shares on higher volume and momentum from $70.00 per share to the current $90.00 level.

It feels like price is in the stratosphere but still, a continued surge above $90.00 suggests $100.00 could be achieved.

Always manage your risk and carefully monitor open positions if you’re playing into a momentum name.

The benefit of fast, efficient profits can be significant but you must balance this against the risk of loss if shares return to earth in a steeper retracement than expected.

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Corey Rosenbloom, CMT
Afraid to

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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).

1 Comment

One Response to “Three Suddenly Strong Stocks to Study”

  1. Michael Says:

    The trend seems to be confusing at the moment, so we need to be very careful about it. If we feel confident then of course it’s alright to go for it, but if we have any doubt than we should stay away. I only focus on long term trades which is really helpful with superb broker like OctaFX where I get swap free account option available, it really helps me working well because I don’t have to pay any extra fees or charges which makes me trade better.