8 Stocks About to Reverse Higher

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The Profit Scanner powered by Recognia combs through the charts of over 65,000 equities and other trading instruments each day to uncover the best opportunities in the market. Here are eight highly-traded stocks that could be in for a bullish reversal in the short term, from companies that sell everything from RVs to smartphone chips, ATMs and graphing calculators.

First up is SLM (SLM), the leading provider of private student loans that is more commonly known as Sallie Mae. It’s a hard company to love, but its shares looks like they’re about to turn higher, so this looks like a good time for traders to jump aboard.

At Wednesday’s close, the Profit Scanner identified a bullish Engulfing Line pattern in SLM’s chart, which indicates that buying pressure has overwhelmed prior selling pressure and the recent downtrend is due to reverse. The pattern is so named because it consists of two candlesticks in which the white real body of the second completely envelops the black real body of the first, showing that the bulls have taken over from the bears.

Also this week, three well-known stocks showed all the makings of a bullish Inside Bar pattern — namely:

  • Rent-A-Center (RCII), the Texas-based chain of rent-to-own stores offering mainly furniture and electronics.
  • NCR (NCR), the maker of self-service kiosks, other point-of-sale terminals and ATMs headquartered in Atlanta, Georgia.
  • Winnebago Industries (WGO), the preeminent RV/motor-home manufacturer based in Iowa.

For those who are unfamiliar with this technical pattern, the Inside Bar develops during a strong downtrend, with a trading range that’s completely within the boundaries of the prior bar. Basically, the pattern suggests that the balance between buyers and sellers, recently dominated by the bears, is evening out, and we may soon see the stock move higher.

Last but not least, bulls will be gratified to hear that several stocks that are very popular among traders are flashing an Island Bottom pattern. An Island Bottom forms after a sustained downtrend, as a narrow trading range develops that is separated from the previous price action first by an exhaustion gap, then by a breakaway gap.

Micron Technology (MU)’s chart shows an excellent example of the pattern, with an island forming between the gap down in early October and the gap up on Oct. 21:

20141024 Profit Scanner

A few other stocks that completed an Island Bottom this week and are looking primed and ready for long-side profits include:

  • Time Warner Cable (TWC), one of the biggest cable companies in the United States, operating in 29 states.
  • Texas Instruments (TXN), maker of smartphone chips, semiconductors and related products such as calculators and multi-core processors.
  • Dillard’s (DDS), the retail chain of upmarket department stores primarily located in Texas and Florida.

Profit Scanner powered by Recognia can help traders of all levels find new trading customized trading opportunities for finding the best stocks to buy or short in specific sectors, price points, timeframes and so much more. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.


Article printed from InvestorPlace Media, https://investorplace.com/2014/10/8-stocks-reverse-higher/.

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