Monday, April 20, 2015

Leading Growth Stocks Tightening Ahead of Next Move Higher

Traders have had a tough go of it over the last few months as every rally has been short lived with little follow through. But leading growth stocks have remained stubborn despite the numerous red flags in the market, mainly the high distribution count. There are many leading growth stocks that have tightened up ahead of their earning's reports and are ready to bounce off moving averages and breakout out of bases.

LinkedIn (LNKD) has been forming a flat base, after gaping out, in heavy volume, out of a first stage, cup and handle base in February, on a strong earning's report. 

Apple (AAPL) has been tightening up into the fifty day moving average ahead of its earning's report next Monday. 

Twitter (TWTR) has pulled back to the twenty day moving average after breaking out, in heavy volume, out of a first stage, cup and handle base in March.

Mallinckrodt (MNK) has tightened up into the fifty day moving average ahead of its earning's report May 5th. 

Nexstar Broadcasting (NXST) is forming a first stage, flat base on top of a cup and handle base, ahead of its earning's report May 7th, and Sinclair Broadcasting (SBGI) has tightened up into the twenty day moving average after breaking out in March, in heavy volume, ahead of its earning's report May 6th.

Netease (NTES) attempted to breakout of a cup shaped base two weeks ago in heavy volume and is currently putting on a high handle to the cup shaped base.

SolarCity (SCTY) is forming a cup shaped base ahead if its earning's report May 6th, along with First Solar (FSLR) and Canadian Solar (CSIQ) forming first stage, cup and handle bases.

With so many leading growth stocks tightening up into earning's reports, and Netflix (NFLX) gaping out in strong volume on its earning's report and following through in a sideways market, it is time to start getting aggressive on the long side. 

Review the leading growth stocks analysis for more setups, and there are plenty of them. Adjust positions for added risk, since the market's red flags cannot be ignored.

PS

Checkout the new site, DividendBreakouts.com, for stocks with high yields breaking out of early stage bases. Sign up for free breakout alerts.
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