The stocks on the watch list should always be entered with the 9/20ema rule in mind. Additionally, if the indices are weak, consider waiting, as some of these stocks may move lower with the listed index. If a candidate shows relative strength and triggers a 9/20ema trigger, this may suggest institutions are eager to accumulate shares. We will cover these in more detail as the day/week progresses.
I’ve numbered the new candidates for easy reference as we talk about them LIVE.
Bank of the Ozarks is one possible candidate. If OZRK shows relative strength this morning, we use the 9/20ema rule to enter and seek the best risk/reward initially using the 5 minute chart. Below is Friday price action. SPY at the time were experiencing 1:1 up down volume, so waiting until that increased later in the session reflected well in the 5 min chart. Had you entered on Friday, we would have likely taken a swing into this Monday. The reasoning is 1) price closed near the high of the session and 2) price action intraday finished strong. A short push and we can see price move above the VBP resistance zones on the left.
We like the daily. If price action continues its bullish tendencies, RSI will push higher, along with STO and MACD. Volume should increase to confirm a breakout of this bullish ascending triangle. There is no overhead supply at 52 week highs.
Below are a few late additions. AKRX was discussed last night as possible income trade. We would anticipate a pullback first, if it does happen, as the stock is pulling away from the 9ema. A pullback may provide a solid entry. Note the VBP support and resistance levels.
IONS – same thoughts. Looking for a better entry; perhaps a pullback to the VBP support zone at 52.00 then look for a follow through bullish continuation candle or two.
Be sure that you, print the watch list and have it ready or keep it on your de
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