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Momentum Monday: 3 Top Ranked Stocks on the Verge of a Breakout
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Want to start the week ahead of the pack? Check out Momentum Mondays, where I cover the leading breakout stocks in the market, summarize the major events of the week ahead, and prepare investors for profitable trading.
Today, we will be taking a look at the broad stock market indexes to summarize the action of the last few weeks, then we will take a look at the economic calendar to address any market moving data coming our way. And finally, I will share three compelling technical trade setups in stocks with top Zacks Ranks.
Broad Market Overview
Last week, sentiment among traders was as bearish as it has been since the start of the year. Not surprisingly, right when it appeared the market would roll over, it found buyers. In last week’s edition of ‘Momentum Monday,’ I noted this key level of support in the Nasdaq 100 at 14,500, which held nicely. Now markets look ready to make another bull run.
Image Source: TradingView
Economic Data
The big day this week for economic data releases is Thursday, where we get Initial Jobless claims and CPI inflation. Critical to the Fed’s interest rate policy decisions are inflation and the labor market dynamics.
At the last policy meeting, Fed officials came out more hawkish than the market expected, perpetuating the “higher for longer” narrative. They did this in response to the robust labor market, and persistent inflation. Now that the market priced in this new information, any data showing weak employment, and falling inflation may act as bullish catalysts.
Image Source: MarketWatch
Trade Setups
VMware a Zacks Rank #1 (Strong Buy) stock is building out a bullish technical pattern. If the stock can hold above the $168.50 level, it would signal breakout.
Image Source: TradingView
Cyber security company Palo Alto Networks(PANW - Free Report) is another Zacks Rank #1 (Strong Buy) stocks with breakout potential. Above the $250 level and this stock should see new highs.
Image Source: TradingView
Uber Technologies (UBER - Free Report) is yet another Zacks Rank #1 (Strong Buy) stock on the cusp of a breakout. This descending wedge/bull flag has formed just above a major level of support. If the stock can trade above the $45.65 level, it should make a nice bull run. But below $44 and investors may want to look for another opportunity.
Image Source: TradingView
Bottom Line
Even the best trading setups fail. Although these stocks have numerous bullish catalysts in their favor, traders should always stick to a trading plan, and most importantly prioritize prudent risk management. Always know the maximum amount of money you can lose on a trade and respect your stop losses.
Best of luck this week!
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Momentum Monday: 3 Top Ranked Stocks on the Verge of a Breakout
Want to start the week ahead of the pack? Check out Momentum Mondays, where I cover the leading breakout stocks in the market, summarize the major events of the week ahead, and prepare investors for profitable trading.
Today, we will be taking a look at the broad stock market indexes to summarize the action of the last few weeks, then we will take a look at the economic calendar to address any market moving data coming our way. And finally, I will share three compelling technical trade setups in stocks with top Zacks Ranks.
Broad Market Overview
Last week, sentiment among traders was as bearish as it has been since the start of the year. Not surprisingly, right when it appeared the market would roll over, it found buyers. In last week’s edition of ‘Momentum Monday,’ I noted this key level of support in the Nasdaq 100 at 14,500, which held nicely. Now markets look ready to make another bull run.
Image Source: TradingView
Economic Data
The big day this week for economic data releases is Thursday, where we get Initial Jobless claims and CPI inflation. Critical to the Fed’s interest rate policy decisions are inflation and the labor market dynamics.
At the last policy meeting, Fed officials came out more hawkish than the market expected, perpetuating the “higher for longer” narrative. They did this in response to the robust labor market, and persistent inflation. Now that the market priced in this new information, any data showing weak employment, and falling inflation may act as bullish catalysts.
Image Source: MarketWatch
Trade Setups
VMware a Zacks Rank #1 (Strong Buy) stock is building out a bullish technical pattern. If the stock can hold above the $168.50 level, it would signal breakout.
Image Source: TradingView
Cyber security company Palo Alto Networks (PANW - Free Report) is another Zacks Rank #1 (Strong Buy) stocks with breakout potential. Above the $250 level and this stock should see new highs.
Image Source: TradingView
Uber Technologies (UBER - Free Report) is yet another Zacks Rank #1 (Strong Buy) stock on the cusp of a breakout. This descending wedge/bull flag has formed just above a major level of support. If the stock can trade above the $45.65 level, it should make a nice bull run. But below $44 and investors may want to look for another opportunity.
Image Source: TradingView
Bottom Line
Even the best trading setups fail. Although these stocks have numerous bullish catalysts in their favor, traders should always stick to a trading plan, and most importantly prioritize prudent risk management. Always know the maximum amount of money you can lose on a trade and respect your stop losses.
Best of luck this week!