Rx Free Setups 9/12/22
ENPH: Despite the analyst downgrade on Friday, we were able to battle and close at an all time high. Often times analysts will downgrade a stock to allow other firms to get into them at a cheaper price. I mentioned that downgrades can last 3 hours or 3 days. This one so far started to recover by the end of the day Friday. We will see how it trades next week but so far it is acting beautifully.
CCJ: This nuclear leader is forming a beautiful cup formation. It is a bit extended so I want to see a handle form here for a better entry.
SMCI: This tech name had a nice breakout and finally pulled back into the previous support area. It broke out of the falling wedge on Thursday and continued on Friday. This smaller company can move very fast so it could be a nice swing trade.
LTHM: This is a smaller lithium company. The little sister to ALB. It has formed a nice volatility contraction pattern and the volume on the breakout was very strong. Look for it to get back over $35 next week.
STLD: This steelmaker had one last shakeout on the right side to complete the inverse head and shoulders. I think this pattern looks really amazing right now.
DGII: After a big breakout move, this strong leader of the small caps is setting up once again in this flat base. I also like the large green bars of accumulation in this recent base. I think this is an explosive stock.