3 “Strong Buy” Stocks for the Week

These stocks are set for strong gains

Hot Stocks to Buy Now

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Stocks entered the weekend on a sour note. Turkey currency woes were all the excuse needed to end the multi-day rally that had carried the S&P 500 within a whisker of all-time highs. But one day does not a downtrend make. My weekend scanning revealed many “strong buys” that deserve a top spots on your list of stocks to buy.

During the market’s next ascent, today’s trio should deliver.

Spotting relative strength is a cinch on down days like Friday. All you have to do is focus on the few equities able to stay green while the rest of the market is being painted red. Two of today’s selections are itching for breakouts. The third retreated to a critical support level and is offering a classic low-risk, high-reward setup.

Here are three “strong buy” stocks to buy this week.

3 Strong Stocks to Buy: Apple (AAPL)

Source: OptionsAnalytix

Ever since eclipsing the magical $1 trillion market cap level, Apple (NASDAQ:AAPL) stock has remained steadfast. The post-earnings launch that ushered the stock to new heights created some overbought conditions that needed digesting. Rather than retreating from its dizzying heights, it’s meandered sideways in a narrow band of consolidation.

And that means it’s only a matter of time before the tech titan breaks out to new highs. The key price level to watch is $210. It has been tested numerous times during the past week proving it’s the ceiling worth watching.

Once buyers muster the strength to clear it, a new upswing should emerge. To capitalize consider buying the Oct $205/$215 bull call spread for around $5.38

3 Strong Stocks to Buy: Amgen (AMGN)

Source: OptionsAnalytix

Amgen (NASDAQ:AMGN) is the next target on our list of “strong buy” stocks. The healthcare sector has been a beast since bottoming in early-May. Large caps in the space like AMGN have returned to uptrending status. In fact, Amgen just re-tested its January high. Though the initial probe was rebuffed, I suspect it’s only a matter of time before the stock climbs to new highs.

Last week’s pullback is providing an attractive dip buy setup. AMGN is now testing the rising trendline that has defined its behavior since May. If past is prologue, this is the spot where buyers should emerge.

Buy the Oct $195/$200 bull call spread for $2.10. This will set you up to more than double your money if AMGN can rise above $200 by expiration. Wait for a break of Friday’s high ($194.85) to confirm the stock is pivoting higher.

3 Strong Stocks to Buy: Lululemon Athletica (LULU)

Source: OptionsAnalytix

Lululemon Athletica (NASDAQ:LULU) rounds out today’s trio with a beautiful breakout play. After pole-vaulting higher on earnings in late-May, the recovering retailer entered base-building mode. The multi-month pause allowed  LULU to digest this year’s enormous gains and create a more sustainable uptrend.

With Friday’s rally, the stock is now testing the upper end of its range which makes a breakout imminent. The only thing that gives me pause is LULU had already risen seven of the prior eight days before Friday’s jump. That suggests the stock could need a pause before lifting further. But, either way, LULU is a “strong buy” stock here.

We are once again recommending a bull call spread. Buy the Oct $130/$135 bull call spread for around $2.45.

As of this writing, Tyler Craig held neutral options positions in AAPL. Want more education on how to trade? Check out his trading blog, Tales of a Technician.

Article printed from InvestorPlace Media, https://investorplace.com/2018/08/3-strong-buy-stocks-for-the-week/.

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