As my fellow newsletter advisors and 24/7 Trader contributors have been talking about the shift to risk-on stocks, I wanted to add my own two cents on cloud stock j2 Global (JCOM), a stock recently recommended by Dave Moenning that I agree looks very technically strong.
My Trending123 Pattern Scan powered by Recognia is showing technical signs that this stock is ready for a breakout to the $44.80 – $45.70 level.
As you can see in the chart, JCOM has developed a continuation diamond over the past 48 days. As of the time of this writing, it had not yet broken out above the upper trendline. So how will you know when to take action?
First, let’s go over what a continuation diamond is. You can see that in the inbound trend leading to this pattern, the price has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend. The pattern begins during a downtrend as prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. When the price breaks upward out of the diamond’s boundary lines, it marks the resumption of the prior uptrend. Based on the Pattern Scan, this would be the ideal time to buy.
nvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123. Trending123 members receive access to the Trending123 Pattern Scan powered by Recognia free as part of their membership. For more information on which service is for you click here.