Active traders in search of quality stocks to buy should focus on two things: a solid chart pattern and a low-risk, high-reward opportunity. And typically the first is what leads to the second.
Fortunately for stock bulls, last week’s broad market pullback delivered opportunities on both fronts. A brief bout of profit-taking ushered the S&P 500 to as logical a buy point as any — the rising 20-day moving average. This smoothing mechanism is often a gathering ground for bargain hunters. There they lie in wait for a chance to grab shares at a discount.
Last week they received their chance. And it wasn’t squandered. The Thursday-Friday price pop for the S&P confirmed dip-buyers remain alive and well. And it wasn’t just the broad market index that developed an attractive price pattern. A handful of stocks followed suit by forming low-risk, high-reward opportunities of their own.
Here are three of the best-looking stocks to buy for the week ahead.