As we celebrate record intraday highs for the US stock market, it is interesting to look at a trio of US stocks that have so far made somewhat hard work of the greatest bull market in history. In the case of the Nanostring chart there are three things to focus on. The first is the strange “pile driver” day in March where the stock fell and then immediately bounced back.
This is a sign that somewhere behind the scenes there is a very keen buyer. Indeed, the latest price action in the form of a rebound off the floor of a rising trend channel from September and the recovery of the 50 day moving average at $24.94 implies that the rally here is back on track and could hit the top of the rising trend channel at $35 over the next couple of months. The stop loss is the aforementioned March day support at $22,00. It would be very surprising if this was broken.
For Sailpoint it would appear that the recent pullback is also at an end, and that there could be an extended rebound off the $27 February 2018 uptrend line.
Indeed, an end of day close back above the 200 day moving average at $27.78 may be decent confirmation of a return to bullish form, with a clearance of the 50 day moving average at $29.19 the trigger for cautious traders. Ideally, we have been in a converging triangle and this will break to the upside via $31 before the end of next month.
With Unum we get the feel of an oil tanker trying to turn around to the bull side, but with two failures over the past couple of months to clear the 200 day moving average at $35.70. The hope now would be that it is third time lucky, especially given the M&A buzz doing the rounds regarding the company last week.
Nevertheless, unless there is a dramatic fundamental development the easiest way forward here may be to wait on a break of the main $38 resistance, or even a higher low above this mark. That said, where is the fun in being that cautious?
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