Rx Free Setups - Week of 5/30
UTHR: I brought this chart up in our private Twitter group the day it was breaking out from this long base. Since then it has continued higher. The volume recently has been massive. They recently had a new drug approved for pulmonary hypertension. This company has stable earnings growth. It has a low float so it can have big moves. I think it is a bit extended here so if it can pull back to retest the breakout area then it could be a great one to try.
WWE: This wrestling entertainment company has been very strong recently. It broke out of this cup and handle pattern on good volume. They have a huge short interest of 10 days so it can continue to squeeze higher. If it can pull back to the $64 area on light volume then it could provide us with a safer entry.
CEG: This is an alternative energy company that provides power and natural gas to the US. it is a newer IPO which is good and it is in a strong sector. The strength is undeniable and it is liquid being a $21 Billion company. Ideally, we want to see it form a handle here for a lower-risk entry.
ARIS: This pollution control company is only $1B in market cap but the technical action is a thing of beauty. It is a new IPO and formed a nice base here when the market was falling. Strong relative strength and the volume on Friday on the breakout were impressive. It has triple-digit earnings growth and double-digit sales. They have a pact with chevron to facilitate recycled water. If it can pull back next week closer to $20 then it could be a nice one to try.
AMPH: This generic drugmaker had a big run earlier this year and since then it has pulled back and now forming a stage 2 cup formation. It reclaimed the 50 DMA on Friday on strong volume. It is being accumulated on the right side of the cup and is one to watch. It has strong earnings and sales and only has a P/E of 23. Look for a handle to form in the coming days.
NFE: This natural gas to power company has formed a beautiful symmetrical triangle here. The relative strength is at a new high and the fundamentals are really good. This has been a strong sector and this name can really move with a float of only 60 million shares. Look for a breakout over $49 on strong volume.
ALB: This chemical maker is forming a beautiful cup formation. It broke out of a base resistance at $250 on high volume on Thursday but it is still within a larger stage 1 cup. If it can form a handle here in the coming days then it could provide us with a good entry.
LTHM: This lithium maker broke out strongly on Friday with big volume. It has strong fundamentals and a 5 days of short interest that can power the squeeze higher. Lithium is used in batteries for EVs so this is a strong sector. It is a bit extended here but if it can pull back into the $32.5 area then it could provide us with a nice entry.
FANG: Oil seems to never go away as it has been the strongest sector of the year. This leader has been building a nice base since Feb and now finally broke out on Friday. Oil just seems too obvious and late at this time but it continues to hold up strongly. If you want some exposure to the sector, you can’t go wrong with this name.
Thank you for reading.
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