Whether it is a lag time, it has yet to be seen. The markets actually behaved quite well to the news of a passed healthcare bill. As the market continues to chug higher, I am still looking at charts and waiting for pullbacks.
I rarely like to buy stocks on breakouts and instead prefer to buy on a pullback post-breakout.
Below are a handful of stock charts that have recently broken out and looking for possible pullbacks anytime now.
Ebay (EBAY) – Broke out of the sideways trend and looks to have reached its initial price target and peaked out. RSI and MACD are pretty high, so I’d like for the stock to come back down somewhere between $25-26.
Las Vegas Sands (LVS) – Volume was great on breakout, I’d wait for the pullback to somewhere around near support.
AK Steel (AKS) – Support held for the day and price closed higher. Keep trading levels: below support (dump), within trading zone (play), above support (buy more).
Netflix (NFLX) – This stock has kept on ticking despite verbal selling pressure by many traders. What’s amazing is that the RSI still hasn’t exceeded drastically overbought levels. Continue to play current trend until it breaks.
Caterpillar (CAT) – Found support at the 62% retracement level. Stock continues to be in play as long as it stays above this retracement level.
