Five New Watch List Additions – Watching UBNT for a BreakOut

Although the Trump inauguration has come and gone, investors still seem to be in a wait-and-see mode.

This morning U.S. stock futures are holding steady while most European markets edged higher in early trading.

Asian markets ended the day with mixed results.

Today, we have a flurry of earnings reports coming out before the open, and we can expect those reactions to have some influence on the major averages’ direction.

Releases due before the bell include the following: Johnson & Johnson (JNJ), Travelers (TRV), DuPont (DD), Alibaba (BABA), Verizon (VZ), and 3M (MMM).

What I noted a few weeks ago we are now seeing, as more individual stocks continue building new bases to potentially buy off of, while our watch lists have grown rather steadily.

Speaking off, I ran my routine stock screens early this morning and added another five stocks to the Technical SetUps WatchList.

At this point, we have 14 stocks on our Technical SetUps WatchList and another 11 on our TrendLine SetUps WatchList. There are currently no stocks which meet the strict criteria for the High-Ranked Leaders WatchList.

Of those 25 set ups, UBNT looks poised to break out as its shares traded +2.6% higher yesterday with a +50% increase in volume.

The company has a solid fundamental history and is overall highly ranked.

Shares are building a base at new all-time highs and just +5.5% above the stock’s 50-day moving average.

I consider this technically ideal as once this leader breaks out and triggers a BUY signal, there is no resistance/overhead supply in the way of any further possible gains. In the event of a pullback, we have sound support (50 DMA) just below our BUY price.

TRADING CRITERIA

SYMBOL

LAST ADDED TO WATCH LIST TRIGGER PRICE TRIGGER VOLUME MAX BUY PRICE
UBNT $60.09 01-24-17 $60.58 546,750

$63.61

Going forward, any gains above the TRIGGER PRICE while the stock’s volume is at least on pace to make the TRIGGER VOLUME, would have this candidate buyable up to the MAX BUY PRICE.

My standard formula for MAX BUY PRICE:
TRIGGER PRICE x 1.05

Additional set-ups from our watch lists which should be monitored closely today for a breakout include: BERY, EXP, ORBK, and MCHP.

Also, we have TXN which is currently on our Technical SetUps WatchList due to announce earnings today after the close. We can likely see some volatility before the session ends, and a possible either-direction gap at tomorrow’s open.

Although this stock may trigger a BUY signal by default if its shares trade above the TRIGGER PRICE of $75.35 with the required volume, keep in mind that earnings breakouts do carry more risk. So, caution is advised.

Any questions or concerns, please email me at james@jamestaulman.com.

NOTE: We are still live-testing this new version of this report. There are several new features and enhancements slated for 2017. Any feedback is welcomed and appreciated.

 

ALL OF TODAY’S WATCH LISTS ALONG WITH
ANNOTATED CHARTS ARE HERE