The market has made some big strides over the last few weeks, and the patterns on the charts have been improving nicely. Each of the three major indices remains off its all-time highs, but diving down into individual stocks, we can uncover a select few that stand out above the rest.
I run through upwards of 1,000 charts daily, and given some of the action I’ve been seeing recently I wanted to share five that are head and shoulders above their peers.
Here they are, in no particular order.
The Best Charts Right Now: Electronic Arts (EA)
Leading video game developer Electronic Arts Inc. (NASDAQ:EA) is in the midst of one of my favorite chart set-ups — the breakout/pullback. It’s exactly what it sounds like it would be. EA underwent a heavy-volume rally to a new all-time high on the back of a strong earnings report but has since pulled back to test its old record (the black line) as support.
The period of weakness is considered healthy because it’s common for a stock to take a breather after breaking through resistance. That resistance does a role reversal and turns into support, and as long as the stock is able to hold that level amid the pullback, it creates a buying opportunity.
Well, that’s exactly what we’re seeing with EA right now.
The Best Charts Right Now: Scientific Games (SGMS)
Click to Enlarge Scientific Games Corp (NASDAQ:SGMS) is a maker of gaming equipment and related technology, and it recently rallied to a new high following the Supreme Court’s decision to legalize sports gambling in all 50 states. As the $150 billion worth of illegal sports bets make their way to legitimate venues, this stock could be a big winner.
SGMS’ rally earlier this week came on big volume, and since then it has been consolidating on light volume. Another week of similar action or even a healthy pullback to the old resistance level (the black line), which is now acting as support, would confirm the breakout.
And from there, the stock could be primed to start a fresh leg higher.
The Best Charts Right Now: Visa (V)
Click to Enlarge Visa Inc (NYSE:V) is a household name around the world, yet it is often overlooked as a good investment option. That’s a shame, especially since this stock is up 14% so far in 2018 and easily beating the performance of the broad market.
But if you think that yearly performance is impressive, take a look at the long-term chart.
V recently climbed to a new all-time high, and while I wouldn’t buy it at current prices, I do think any and all pullbacks should be viewed as strong buying opportunities.
The Best Charts Right Now: Varonis Systems (VRNS)
Click to Enlarge We all know that cyberattacks are taking place around the clock as hackers try to steal and hijack information, and Varonis Systems Inc (NASDAQ:VRNS) is a small cybersecurity company that is benefiting from the increased need for protection. The stock has put together a great 2018, already up almost 50%.
Its chart is a thing of beauty, as the stock has been in a steady uptrend over the last year with only a few small and healthy pullbacks along the way.
Any dips to the 20-day moving average (the magenta line) would be considered opportunities to initiate a position.
The Best Charts Right Now: At Home Group (HOME)
Click to Enlarge This stock is a play on the booming housing market. This is a sector I like a lot right now, and the fact that At Home Group Inc (NYSE:HOME) isn’t directly affected by rising interest rates is an added bonus.
At Home Group is a home goods retailer that has had a strong month, as it rallied to a new high and has spent the last few weeks consolidating above the new support area around $34 (the black line). This consolidation phase combined with bullish volume tells me that a fresh breakout is imminent.
Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of FUTR Stocks and the ETF Bulletin. Matt just launched two new investment advisories focused around the “next” generation investing theme. His trademark three-prong investing approach targets the mega-trends old Wall Street is missing out on. Click here for more information on the “NexGen” Experience.