This chart has a lot of the things I look for in a long idea. Looking at the weekly chart the stock is already in a long-term uptrend, it’s above its long-term 10-wk and 40-wk averages, it’s safely above a decent support area and within easy reach of new highs.
Looking a little closer on the daily chart the only thing that’s missing for me over the last few months is a bit more volume on the up days, so Friday’s move makes this interesting, the first decent volume day for over 3 weeks and a nice trend day higher. Ideally I’d like to see a couple of tight narrow-range days consolidating this move to add to the position. Be aware earnings are due 2/7 which could obviously be a catalyst for volatility as it tests new highs.
Jon Boorman, CMT, is a market technician, analyst, and trader with 25 years experience in global equity, forex, and futures markets. He employs trend following and momentum strategies to generate actionable trade ideas. 
Loading tweets...
1 comment
hw
1/27 at 9:39 pm (UTC -5) Link to this comment
thanks for writing this