From Corey Rosenbloom: Each week, I publish the results of a “Strong Stock Getting Stronger” stock scan. NVIDIA Corporation (NASDAQ:NVDA) consistently ranked in the top of that list for many, many weeks.
Let’s take a look at the progress of this “strong stock” and the recent rally back to the high, focusing on two strong recent retracement trades.
When you’re swing trading, you want to find candidates that look like this:
Rising Trend, Rising Moving Averages, Rising/High Momentum and Volume, “Price Stability”
Though we saw stability for most of 2016, we started to see a surge in momentum and volume in November and now January.
Both of these instances – with green vertical highlights – set in motion a PULLBACK or retracement trade.
See our Perfect Pullback Trading Tactics for a specific strategy on how to identify and trade these efficient and (relatively) easy set-ups.
December saw two mini-pullbacks to the rising 20 day EMA, both of which were “perfect” pullback candidates. You can see what happened next as buyers received steady profits all the way into January.
From there, another pullback took price once again to the rising 20 day EMA for another perfect pullback. You can also see the profits buyers enjoyed by taking the risk – and the trade.
We are constantly looking to trade “strong stocks getting stronger” and again list these in scans for members. tudy the example above in NVIDIA and be on the lookout for similar candidates – and pullbacks.
NVIDIA Corporation (NASDAQ:NVDA) was trading at $120.66 per share on Tuesday morning, up $3.35 (+2.86%). Year-to-date, NVDA has gained 13.04%, versus a 2.70% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of AfraidToTrade.com.
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