Stocks On My Radar: Updates on Trending Plays

Hey traders,

I wanted to run through the charts for the stocks I gave you the other day, so you can see exactly what I see when I look at their charts.

First up, we’ve got IRM. This one’s been a real winner.

The stock price is riding a nice upward trend, bouncing off that short-term (green) trend line and heading higher.

We’ve seen several days of higher daily highs and lows (that’s what the teal/blue bars mean), so while I expect a little pause, this stock still looks strong. Remember, we’re just trying to grab a little piece of the trend on stocks that are already moving up.

Next on the list is MSI.

Now, this one’s also been trending well, with those three beautiful sloping trend points, but if you’re not already in it, I’d hold off.

It’s had a nice run, and it’ll probably take a breather soon. If you’re in it, maybe consider taking some profits while it’s still floating above that short-term trend.

IMPORTANT POINT: When the stock price gets a little too far above the short-term green trend line, like you see on the chart above, you can expect it to come down to that trendline before continuing higher.

That’s one of the reason I say if you’re not already in this one, you should hold off.

Then there’s NI — this one’s not quite as strong as IRM or MSI, but it’s still hanging in there.

See where I put the red arrow in the chart above? The stock price actually came down below the green trend line.

That indicates a bit of weakness, so I wouldn’t say it’s the best trend we’ve seen, but it’s worth watching.

AFL is another solid one.

This stock has been in a great trend, but like I mentioned before, watch for too many blue bars.

See where I put the red arrow above? That fast run up with the blue bars and then see how the stock snapped back down to touch the green trend line? That’s what I’m talking about when I say watch out.

And watch for those yellow bars — they’re your signal that the trend might take a pause. Still, AFL looks like it’s primed to move higher. Full disclosure: I’m long AFL.

Side note: On my custom-built TrendPoint software, blue/teal bars indicate a day with a higher daily high and a higher daily low.

Yellow bars indicate a day with a higher daily high, or a higher daily low, but not both.

White bars indicate a day with neither a higher daily high nor a higher daily low.

SFM is up next.

This is awesome. Look at this, we had a big gap up in the middle of the chart where I marked it with the red arrow.

You always want to be careful with that, because with a big jump like that, you can generally expect the stock to come back down and touch the green trend line again.

But aside from that, look look at the full trend. It’s a strong trend for a long time. It looks like a great buy right now.

LNT had a drop and then a pop recently.

I would actually steer clear of this one right now. Too volatile, especially when there are stocks with much smoother trends to work with.

Finally, PLTR — what a wild ride this one has been.

It jumped hard recently, but as I’ve mentioned a few times already, that kind of move is usually not sustainable.

It’s had five or six blue bar days in a row, so if you’re holding it, consider taking profits before it pauses.

Also, the trendline on PLTR is too steep. Again, especially with smoother, more even upward trends, this one is a little volatile.

That’s your stock update for today. Stay tuned, I’ll have more soon.

Happy Trading, 

Jack Carter

P.S. This new breakthrough puts my 40 years of trading knowledge in the palm of your hand.

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