This Week’s Sunday Stock Report – 2/23/20

– James F. Taulman, former Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.

 

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3 BreakOut Alerts This Past Week | 5 Stocks on Our WatchList for Next Week

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Investors returned to regular trading on Tuesday, after the President’s Day holiday.

We saw new highs on the Nasdaq and S&P 500 on Wednesday, before a sharp 2-day selloff forced all 3 of the major averages to close below their respective 10-day lines.

The Dow Jones fought with the resistance of its 10-day line early in the week, then fell further to near/above support of its 50-day line on Friday.

In the end, the blue-chips lost –228 points or -0.78% ending at 28,992.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

After trading sharply higher for the past 2 weeks straight, and closing at record highs on Wednesday, the Nasdaq lost -155 points (-1.6%) on the week and closed at 9577.

The composite did hold its 10-day line support on Thursday, yet closed definitively below there on Friday by -1.1%.

Also of note, volume on the exchange increased on the 2 down days.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

This S&P 500 lost lost -42 points -1.25% on the week.

The index did break below its 10-day moving average on Thursday, yet managed to close the session back above, however it was unable perform that feat on Friday.

The bellwether ended the week at 3338, which is +2% above its next support of the 50-day moving average, currently at 3274.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

All 3 of the major averages remain well above their respective 50-day lines, and although we had a sharp 2-day selloff, the current rally continues to officially be in a confirmed uptrend. We did pick up a distribution day on each index – with now 5 on S&P 500 and 3 on Nasdaq.

Earnings season continues with 624 companies reporting next week.

After having 3 BreakOut Alerts the previous week, we had another 3 this past week. The charts and support levels for these latest breakouts have been updated below.

If you bought any of the 20 BreakOut Alerts that were issued over the past 30-days, be sure to check the new Premium Members Area at BuyingBreakOuts.com for ongoing chart analysis and updated support levels throughout the week here.

While reviewing over 219 charts this weekend, I did not add any new stocks to our weekly watch list. There are now 5 stocks that we will be watching for a traditional break out to new highs this coming week. The watch list is updated throughout the week here.

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BREAKOUT ALERT UPDATE: 

There were 3 “BreakOut Alerts” this past week. The chart and support levels have been updated below.

#3 Coupa Software Inc (NASDAQ – COUP)

Coupa Software Incorporated provides cloud-based business spend management platform. The company’s platform connects organization with suppliers globally; and provides visibility into and control over how companies spend money, as well as enables businesses to achieve savings that drive profitability. 

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
COUP $163.31 2/18 $174.37 2/19

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

MAX BUY PRICE 1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE % GAIN/
LOSS
$183.09 10 DMA 50 DMA $160.42 -6.34%

Questions? – Click here.

#2 IDEXX Laboratories, Inc. (NASDAQ – IDXX)

IDEXX Laboratories, Inc., together with its subsidiaries, develops, manufactures, and distributes products and services primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets worldwide.

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
IDXX $278.11 2/18 $292.27 2/19

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

MAX BUY PRICE 1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE % GAIN/
LOSS
$306.88 50 DMA $250.00 $268.89 -4.84%

Questions? – Click here.

#1 Ferrari NV (NYSE – RACE)

Ferrari N.V., through with its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars. The company offers sports, GT, and special series cars; limited edition hypercars; Fuori series, one-off, and track cars; and Icona cars.

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
RACE $172.90 2/15 $175.50 2/18

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

MAX BUY PRICE 1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE % GAIN/
LOSS
$84.28 $174.00 $164.00 $161.46 -1.48%

Questions? – Click here.

 

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RELATED LINKS:

IBDWhy Intuitive Surgical, Ping Identity Make MarketSmith’s Growth 250 Near Pivot Stock List

IBDWhen To Buy Growth Stocks: Cup Without Handle Can Pour The Gains

IBDBreakout Stocks: See How To Predict A Breakout With This VIP Chart Pattern

IBDChart Reading 101: Top Stocks Tend To Do This After A Technical Breakout

IBDHow To Buy Growth Stocks: Why The 10-Week Moving Average Offers New Entry Points

IBDWhen Growth Stocks And Breakouts Backtrack To Retest Buy Points

 

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WATCH LIST UPDATE:

While reviewing over 219 charts this weekend, I did not add any new stocks to our weekly watch list. There are now 6 stocks that we will be watching for a traditional break out to new highs this coming week.

NOTE: There may be additional watch list stocks here.

TRADING CRITERIA TABLE Technical SetUps WatchList

Any trading above the stock’s TRIGGER PRICE while the day’s volume is at least on pace to make the TRIGGER VOLUME would have this set up confirming a BUY signal up to the MAX BUY PRICE.

SYM LAST ADDED TO WATCH LIST TRIGGER
PRICE
TRIGGER
VOLUME
MAX BUY PRICE % FR TRIG PR
TSM $55.59 2/15 $60.74 11,213,100 $63.78 -8.48%
JPM $135.81 2/12 $141.20 15,782,850 $148.26 -3.82%
DOV $119.44 2/10 $120.30 1,221,000 $126.32 -0.71%
AME $99.34 2/5 $102.41 1,484,400 $107.53 -3.00%
FSS $33.15 1/28 $34.93 472,500 $164.60 -5.10%

ANNOTATED CHARTSTechnical SetUps WatchList

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

NOTE: There may be additional watch list stocks here.

Questions? – Click here.

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About the Author: James F. Taulman – James served as Editor-in-Chief of the first independently licensed website that offered stock reports and services based on the CAN SLIM® investment system.

He has developed a knack for being able to quickly and accurately analyze high-ranked stocks based on this winning investment strategy.

Over the years, Mr. Taulman has enjoyed assisting individuals from professional money managers to private investors with their needs in relation to implementing this investment approach on a daily basis in the current marketplace.

Each Sunday you could hear him deliver his weekly market report as part of the “Your Money Matters” radio program on ABC and CBS radio networks.

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