OVERVIEW– With a new rally confirmation in hand for the indices registered on Friday, we look to some of the stronger stocks that we have been keeping an eye on during the most recent downturn for possible new long trades. However, the list of leading stocks that are set to break out of proper, solid base formations have been thin, and many have wide and loose formations that lead to a higher than normal breakout failure rate, so conditions are by no means perfect right now. Confirmed uptrend or not, traders still need to trade with caution and move slowly, if at all, into new long positions, preferably with lower than their normal risk. Here is a detailed look at one of our top stocks from this weeks watch list, along with its current EPS and RS rankings from Investors.com and IBD.
TEAM- EPS 97, RS 97
Perhaps the most solid technical set ups we see today belongs to Atlassian Corp. The stock belongs to the Software/Spec Enterprise group, one of the few growth industry groups sitting near the top of the leading industry group list according to Investor Business Daily, ranking 26th out of the 197 groups monitored. After peaking at $98.21 on October 1st, the stock has since carved out a third stage base cup and handle pattern, and at a closing price on Friday of $87.09 sits 3% below the pivot point of that base at $89.82. While some further volatility contraction would be ideal before any breakout, the stock is worth consideration for a long trade on a move above the pivot point on an notable increase in trading volume, preferably 2,000,000 shares, or better as long as the general market conditions are supportive. Remember to never initiate a new trade more than 5% above the stocks pivot point, and preferably much lower. Other stocks that we alerted to members this week include DATA, TWLO, CIEN and QNST. To get analysis on these stocks and much, much more, join us for a free trial today at http://www.ttptrading.com See you there!