We ran an ADX scan last night looking for potential relative strength candidates that have started new uptrends. These 10 stocks have potential, as we look for the indices to stabilize today. Futures are currently green, but have faded from the best levels of today’s session.
Summary
Implied Move for Tuesday 1.5% 51.0 points – Today’s Range 3399.0 – 3501.0
ADX Primer
The Average Directional Index (ADX) is a trading system developed by Welles Wilder for trading commodities. ADX can also be applied to stocks.
At its most basic, the Average Directional Index (ADX) can be used to determine if a security is starting a New Uptrend. Wilder suggests that a strong trend is present when ADX is above 25 and no trend is present when ADX is below 20.
ADX (black line) in the lower panel is turning higher, indicating trend is strengthening. ADX+ (green line) is rising while ADX- (red line) drops.
Additionally, MACD is above its signal line and price action is trending. Volume was above average on Monday while the indices showed weakness into the close. Look for similar patterns in these stocks from the scan.
Top 10 – ADX Scan
| SYMBOL | NAME | SECTOR | CLOSE | CHG | % CHG | +/- |
|---|---|---|---|---|---|---|
| EVK | EVK – Ever-Glory Intl Group, Inc. | Discretionary | 1.28 | 0.25 | 24.27 | |
| MTP | MTP – Midatech Pharma plc | Health Care | 2.36 | 0.36 | 18.00 | |
| LGHL | LGHL – Lion Group Holding Ltd | Financial | 2.94 | 0.26 | 9.70 | |
| YVR | YVR – Liquid Media Group Ltd. | Staples | 1.64 | 0.09 | 5.81 | |
| TRIB | TRIB – Trinity Biotech PLC | Health Care | 2.92 | 0.16 | 5.80 | |
| ADTN | ADTN – ADTRAN, Inc. | Technology | 11.41 | 0.53 | 4.87 | |
| MYT | MYT – Urban Tea, Inc. | Materials | 1.96 | 0.09 | 4.81 | |
| CLPS | CLPS – CLPS Inc. | Technology | 3.83 | 0.13 | 3.52 | |
| KRNY | KRNY – Kearny Financial Corp. | Financial | 8.29 | 0.26 | 3.24 | |
| GMBL | GMBL – Esports Entertainment Group Inc. | Discretionary | 5.43 | 0.17 | 3.23 |
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Happy Trading,
Vinny
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*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
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