3 Potentially Explosive Stocks

3 Potentially Explosive Stocks

Although market conditions are not yet ideal for trading on the long side, it’s always a good idea to keep on top of the best looking charts so that we are prepared to move if/when conditions turn bullish.

Below are a few stocks from our internal watchlists that we are monitoring.

DocuSign ($DOCU)

A big volume breakaway gap up on October 6 sparked the current rally. Despite unreliable market conditions, $DOCU continues to march higher while holding on to the 20-day moving average. If/when market conditions improve, this could be one of the first charts we look to enter if near a decent buy point.

$docu daily

 

The weekly chart shows the big volume on the move up.

$docu weekly

 

Model N ($MODN)

Recently broke out to new all-time highs on the monthly chart below.

$MODN monthly

The weekly chart details the breakout that led to a powerful 50% advance in 12 weeks. After stalling just below $30, a bullish basing pattern known as a flat base has developed. A flat base is at least 5-weeks in length and corrects no more than 15% off the recent high. Note that the 10-week moving average has caught up to provide support.

Depending on market conditions, $MODN may be worthy of an entry prior to the obvious breakout entry above range highs. This stock could be ready to explode higher with a little help from the market.

$MODN weekly

 

Pinduoduo ($PDD)

The last chart is a weekly of $PDD, which is a Chinese based stock that IPO’d in mid-2018. The price nearly doubled off range lows in 8-weeks while setting a new all-time high in August.

$PPD found support less than 20% off range highs, which is a very tight pullback given how explosive the last move up was (a bullish sign). The 10-week moving average has caught up and should offer additional support.

$PDD will need some time to fill out the right side of its base but we look for this stock to become an explosive mover down the road.

$PDD weekly

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DISCLAIMER: Past results are not necessarily indicative of future results. There is a high degree of risk for substantial losses in trading securities. All data and material on this website and/or electronically delivered to individuals is for informational purposes only, and should not be construed as an offer or solicitation of an offer to buy or sell any securities.

 

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