Markets have corrected to level from which enduring bottoms can form. So keeping an open mind for that . However breadth trends as of yet do not show signs of that.
In this market environment defensive stocks are doing well. Some of the good anticipation setups showing up in our scan are utilities.
What makes a good anticipation setup?
- series of narrow range days in pullback/consolidation
- orderly pullback with no 4% plus breakdown during the pullback or consolidation
- low volume pullback
- low volatility during pullback
- linear first leg if looking as continuation setup
- Stock should go up smoothly and not in volatile manner
- 3 to 10 days consolidation/pullback
- not up 3 days in a row