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DP DIAMONDS: Scans Produce, But...

Published on June 03, 2025 at 06:14 PM by Erin Swenlin

DecisionPoint Diamonds

Today I did see quite a few results from my Diamond Scans. With so many results I thought that I would have a large selection to choose from. Ultimately, there were not that many setups that I liked. I still came up with four today and there are some runner-ups to take a look at.

The market doesn't seem interested in declining. We're in a place where we could set our stops and let some positions ride the market up. Internals aren't robust for the market right now which is why I think stops are a necessity right now.

The picks today come from four different sectors. We have aggressive Technology and defensive Utilities. Then I threw in an Industrial and a Healthcare stock to round it out. That should give us fairly good coverage.

Good Luck & Good Trading,

Erin

Today's "Diamonds in the Rough": AMGN, CRF and NVMI.

Runner-ups: NPO, IPGP, SPXC and TGTX.


Diamond Mine Trading Room:


RECORDING & DOWNLOAD LINK (5/30/2025):

Topic: DecisionPoint Diamond Mine (5/30/2025) LIVE Trading Room

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Passcode: May#30th


REGISTRATION for 6/6/2025:

When: June 6, 2025 09:00 AM Pacific Time (US and Canada)

Topic: DecisionPoint Diamond Mine LIVE Trading Room

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After registering, you will receive a confirmation email containing information about joining the webinar.



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.



Fabrinet (FN)


EARNINGS: 2025-08-18 (AMC)

Fabrinet engages in the provision of optical packaging and electronic manufacturing services to original equipment manufacturers. The firm's engineering services include process design, failure analysis, reliability testing, tooling design, and real-time traceability system. Its manufacturing operations offer sensors, subsystems, customized optics, and optical modules and components. The company was founded by David Thomas Mitchell on August 12, 1999 and is headquartered in George Town, Cayman Islands.

Predefined Scans Triggered: Elder Bar Turned Green and New CCI Buy Signals.

FN is down -0.15% in after-hours trading. Price is coming out of a bullish double bottom and hasn't quite hit the upside target of the pattern. We have a breakout above the March high and there is a Golden Cross nearing of the 50/200-day EMAs. The RSI is positive and not overbought. The PMO surged above the signal line. Stochastics have reversed higher and are almost above 80. I definitely like relative strength studies. All three relative strength lines have been rising for some time. The stop is set between the 20/50-day EMAs at 7.6% or $221.63.

We have an excellent rally coming off strong support. The prior declining trend has been taken out by this rally. The weekly RSI is positive and not at all overbought. The weekly PMO is rising on a Crossover BUY Signal above the zero line. The StockCharts Technical Rank (SCTR) is in the hot zone now.

*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.



Eli Lilly & Co. (LLY)


EARNINGS: 2025-08-07 (BMO)

Eli Lilly & Co. engages in the discovery, development, manufacture, and sale of pharmaceutical products. The firm's products consist of diabetes, oncology, immunology, neuroscience, and other products and therapies. The company was founded by Eli Lilly in May 1876 and is headquartered in Indianapolis, IN.

Predefined Scans Triggered: P&F Double Top Breakout.

LLY is down -0.10% in after-hours trading. I spotted the bullish double bottom in the CandleGlance when I was reviewing what stocks to pick. It is trading range bound, but it is now coming off the bottom of the range with plenty of upside potential. The RSI is still negative, but it is on its way higher. The PMO is on a new Crossover BUY Signal. Relative strength is rising for both the group and LLY. I've set the stop beneath support at 6.6% or $701.22.

The trading range is actually forming a flag on a flagpole. I'm just interested in playing the trading range. The indicators are not ripe yet so you may want to keep this one on a short leash. The weekly RSI is negative and the weekly PMO is still in declining and nearing the zero line. The SCTR is well outside the hot zone. If it can get back to the top of the range, it would be quite lucrative.



National Fuel Gas Co. (NFG)


EARNINGS: 2025-08-06 (AMC)

National Fuel Gas Co. is a holding company, which engages in the production, gathering, transportation, storage, and distribution of natural gas. It operates through the following segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment is involved in exploration and development of natural gas reserves in the Appalachian region of the United States. The Pipeline and Storage segment transports and stores natural gas owned by customers. The Gathering segment refers to gathering, processing, and transporting natural gas that is, in large part, produced by Seneca in the Appalachian region of the United States. The Utility segment sells natural gas to retail customers and provides natural gas transportation services. The company was founded on December 8, 1902 and is headquartered in Williamsville, NY.

Predefined Scans Triggered: Moved Above Upper Price Channel, P&F Ascending Triple Top Breakout, P&F Double Top Breakout and New 52-week Highs.

NFG is unchanged in after-hours trading. I liked the steady rising trend and today's breakout. I also liked having defensive coverage from Utilities. The RSI is positive and not overbought which is saying something given this steady rally. The PMO is flat above the zero line and that indicates pure strength. Stochastics are rising and are above 80. Relative strength looks pretty good for the group. NFG is outperforming both the group and the SPY. The stop is set beneath the 50-day EMA at 6.3% or $78.38.

It is a very bullish weekly chart with the exception being that it is overbought. Not a surprise given the strong breakout rally. It has been holding this condition for some time so it may not be a problem. The weekly PMO is rising well above the zero line. The SCTR is inside the hot zone. Consider a 17% upside target to $97.88.



Rollins, Inc. (ROL)


EARNINGS: 2025-07-23 (AMC)

Rollins, Inc. is an international services company, which engages in the provision of pest and termite control services. Its service offerings include Residential, Commercial, and Termite. The company was founded by John W. Rollins Jr. and O. Wayne Rollins Sr. in 1948 and is headquartered in Atlanta, GA.

Predefined Scans Triggered: Stocks in a New Uptrend (Aroon), P&F Ascending Triple Top Breakout, P&F Double Top Breakout and New 52-week Highs.

ROL is up +0.50% in after-hours trading. I liked the steady rally out of the January low and yesterday's breakout with a slight pullback today. A breakout and a pullback is positive especially given the pullback didn't take price below support. The RSI is positive and not overbought. The PMO is on a new Crossover BUY Signal. Stochastics are rising above 80. The group is seeing a little outperformance this week and ROL is already outperforming the group and the SPY. The stop is set below the May low at 7% or $54.25.

We have a solid breakout on the weekly chart with price heading higher. This has caused the weekly RSI to get overbought which could be a problem. However, we have a weekly PMO rising on a Crossover BUY Signal above the zero line so the weekly RSI could stay overbought. The SCTR is in the hot zone above 70. Consider a 17% upside target to about $68.26.




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 60% 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

(c) Copyright 2025 DecisionPoint.com


Watch the latest episode of DecisionPoint Trading Room with Carl Swenlin & Erin Swenlin Mondays on the DecisionPoint YouTube channel here!


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:

Erin's PMO Scan

DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Relative Strength Index (RSI)

Stochastics

Bear Market Rules

For more links, go to DecisionPoint.com
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