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I have lots of runner-up symbols for you today as the scans were fairly plentiful. As I culled through the results and finalized my choices, I realized that three of the four I'm presenting today had "Silver Crosses".
Remember that a Silver Cross is when the 20-day EMA moves above the 50-day EMA. That gives a DecisionPoint Intermediate-Term Trend Model BUY Signal. These stocks have a bullish bias moving forward. It isn't a lock, but it certainly improves our chances of success.
The final stock had a Golden Cross today which means the 50-day EMA crossed above the 200-day EMA. This gives us a LT Trend Model BUY Signal.
I also have two bull flag formations that looked interesting. I noticed quite a few bull flags in the scan results as many stocks resemble the SPY which is also sporting a bull flag right now.
Put the runner-ups in a ChartList and enjoy! I hate to inundate you, but it was really hard to narrow it down today.
Good Luck & Good Trading,
Erin
Today's "Diamonds in the Rough": AZTA, MBC, SEMR and ZYME.
Runner-ups: AM, WWW, KEX, INVH, TDG, TTMI, TCBI, BE, AVDX, FROG, ENS and XYL.
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Welcome to DecisionPoint Diamonds, wherein I highlight ten "Diamonds in the Rough" per week. These are selected from the results of my DecisionPoint Scans which search for stocks that could benefit from the trend and condition of the market. Remember, these are not recommendations to buy or sell, but are the most interesting of the stocks that surfaced in my scans. My objective is to save you the work of the initial, tedious culling process, but you need to apply your own analysis to see if these stocks pique your interest as well. There are no guaranteed winners here!
"Predefined Scans Triggered" are taken from StockCharts.com using the "Symbol Summary" option instead of a "SharpChart" on the workbench.
Stop levels are all rounded down.
Azenta, Inc. (AZTA)
EARNINGS: 2024-08-08 (AMC)
Azenta, Inc. is a provider of life sciences sample exploration and management solutions for the life sciences market. It operates through the Life Sciences Products and Life Sciences Services segments. The Life Sciences Products segment is involved in automated cold storage solutions for biological and chemical compound samples. The Life Sciences Services segment focuses on the solutions addressing the many needs of customers in the area of genomic analysis and the management and care of biological samples used in pharmaceutical, biotech, healthcare, clinical, and academic research, and development markets. The company was founded in 1978 and is headquartered in Burlington, MA.
Predefined Scans Triggered: P&F Double Top Breakout and P&F Triple Top Breakout.
AZTA is unchanged in after hours trading. The follow through on yesterday's breakout is what got me on this chart. It is finally escaping a trading range. We also see that Silver Cross BUY Signal. Granted overhead resistance is nearing already, but indicators suggest we will see another breakout. The RSI is not overbought and the PMO is rising above the zero line on a Crossover BUY Signal. Stochastics are rising and are almost above 80. Relative strength is improving for the group and AZTA. I've set the stop beneath the 20/50EMAs at 7.2% or $53.87.
The weekly RSI just entered positive territory and the weekly PMO has turned up and is going in for a Crossover BUY Signal. The StockCharts Technical Rank (SCTR) is outside the hot zone* so keep this one in the short-term timeframe for now. Upside potential to next resistance level is over 19%.
*If a stock is in the "hot zone" above 70, it implies that it is stronger than 70% of its universe (large-, mid-, small-caps and ETFs) primarily in the intermediate to long terms.
MasterBrand, Inc. (MBC)
EARNINGS: 2024-08-06 (AMC)
MasterBrand, Inc. engages in the business of manufacturing residential cabinets. Its product portfolio includes residential cabinetry products for the kitchen, bathroom, and other parts of the home. The company was founded in June 1954 and is headquartered in Beachwood, OH.
Predefined Scans Triggered: Moved Above Upper Keltner Channel, Moved Above Ichimoku Cloud.
MBC is unchanged in after hours trading. Here we have another Silver Cross IT Trend Model BUY Signal. I very much like the bull flag formation that has been confirmed with a breakout today. The RSI is not overbought and the PMO is rising above the zero line. Stochastics have also tipped back up. Relative strength is excellent across the board. The stop is set beneath the flag toward the 20/50-day EMAs at 7.6% or $15.96.
The weekly chart suggests this one could be an intermediate-term investment given the weekly RSI is positive and not overbought. The weekly PMO is on the rise in positive territory and the SCTR is sitting in the hot zone. Consider a 17% upside target to about $20.21.
SEMrush Holdings Inc. (SEMR)
EARNINGS: 2024-08-01 (AMC)
SEMrush Holdings, Inc. engages in the provision of an online visibility management software-as-a-service platform. The company was founded by Oleg Shchegolev and Dmitry Melnikov in 2012 and is headquartered in Boston, MA.
Predefined Scans Triggered: Moved Above Upper Price Channel.
SEMR is up +1.38% in after hours trading. This is good follow-through on yesterday's breakout. There is the new Silver Cross BUY Signal as well as price travels higher within a rising trend channel. The RSI is not overbought yet and the PMO has just entered positive territory on a Crossover BUY Signal. Stochastics are almost back above 80. The stop is set below the last set of lows at 7.8% or $13.40.
I was a little disappointed that price is butted up against overhead resistance, but this rising trend looks sturdy. The weekly RSI is not overbought. The weekly PMO is still technically in decline, but it has flattened out in anticipation of an upside reversal. The SCTR is in the hot zone. I'm not so sure it will hit the next level of overhead resistance, but there is certainly an opportunity for good upside potential.
Zymeworks Inc. (ZYME)
EARNINGS: 2024-08-01 (AMC)
Zymeworks, Inc. is a biopharmaceutical company, which engages in the discovery, development, and commercialization of novel, multifunctional biotherapeutics. Its product includes Zanidatamab, which is a novel bispecific antibody that targets two distinct domains of the human epidermal growth factor receptor 2 (HER2). Zanidatamab's unique binding properties result in multiple mechanisms of action that may enable it to address unmet need in patient populations with HER2-expressing cancers. The company was founded on September 8, 2003 and is headquartered in Middletown, DE.
Predefined Scans Triggered: P&F Low Pole and Ichimoku Cloud Turned Green.
ZYME is unchanged in after hours trading. The flag formation got me on this one, but also the fact that the flag is sitting on strong support. There is a Golden Cross BUY Signal and a strong rally to confirm the flag formation. The RSI isn't overbought yet and the PMO previously surged above the signal line (bottomed above the signal line). Stochastics have reversed higher and relative strength studies are all positive. I've set the stop beneath the flag and support at 7.9% or $9.55.
The weekly chart is very interesting. Price is up against strong overhead resistance, but the rising trend going into the move to that level is bullish as each consecutive low from late 2022 on was higher. Also, price did not have to go down and touch the bottom of the trading channel. The RSI is positive and not overbought and the weekly PMO is nearing a Crossover BUY Signal. The SCTR may not be in the hot zone, but it is headed there quickly. If price can get to the 2024 high it would be a nice gain.
Don't forget, on Thursdays I look at reader-requested symbols, click HERE to send me an email. I read every email I receive and try to answer them all!
Current Market Outlook:
Market Environment: It is important to consider the odds for success by assessing the market tides. The following chart uses different methodologies for objectively showing the depth and trend of participation for intermediate- and long-term time frames.
- The Silver Cross Index (SCI) shows the percentage of SPX stocks on IT Trend Model BUY signals (20-EMA > 50-EMA)
- The Golden Cross Index (GCI) shows the percentage of SPX stocks on LT Trend Model BUY signals (50-EMA > 200-EMA)
Don't forget that as a "Diamonds" member, you have access to our "Under the Hood" curated ChartList on DecisionPoint.com. You'll find it under "Members Only" links on the left side on the Blogs and Links Page.
Here is the current chart:
Full Disclosure: I am 45% long, 0% short.
I'm required to disclose if I currently own a stock I mention and/or may buy/short it within the next 72 hours.
"Technical Analysis is a windsock, not a crystal ball." - Carl Swenlin
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NOTE: The stocks reported herein are from mechanical trading model scans that are based upon moving average relationships, momentum and volume. DecisionPoint analysis is then applied to get five selections from the scans. The selections given should prompt readers to do a chart review using their own analysis process. This letter is not a call for a specific action to buy, sell or short any of the stocks provided. There are NO sure things or guaranteed returns on the daily selection of "Diamonds in the Rough."
Regarding BUY/SELL Signals: The signal status reported herein is based upon mechanical trading model signals and crossovers. They define the implied bias of the price index/stock based upon moving average relationships and momentum, but they do not necessarily call for a specific action. They are information flags that should prompt chart review. Further, they do not call for continuous buying or selling during the life of the signal. For example, a BUY signal will probably (but not necessarily) return the best results if action is taken soon after the signal is generated. Additional opportunities for buying may be found as price zigzags higher, but the trader must look for optimum entry points. Conversely, exit points to preserve gains (or minimize losses) may be evident before the model mechanically closes the signal.
Helpful DecisionPoint Links:
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
For more links, go to DecisionPoint.com