When market corrects look at resilient stocks
The market is having a minor pullback currently. So far the selling has been concentrated in small cap stocks. Last week large caps were also affected.
Corrections like these in bull market are good opportunity to find next set of stocks setting up for a breakout once selling is over.
One of the easy ways to find stocks holding up well is to focus on momentum stocks. For that I look at stocks that have gone up at least 80% from 52 week low and is within 15% of 52 week high.
A stock up 80% from 52 week low is a proven horse. If these stocks during market or sector correction hold on to their gains then it is even better indicator. It tells us that buyers are not willing to sell easily or there are new buyers willing to buy at these levels so any selling is absorbed by them.
In order to set his up in Telechart you can create a scan for these kind of stocks.
c/minl252>=1.8 and minv3.1>=100000 and c>=.85*maxh252
If you run the scan today you will get around 109 stocks. Not every one of those is worth tracking as some are establishing a downtrend. If you just focus on the stocks that are having orderly correction or going sideways you will get around 6 to 10 good candidates to watch.
Corrections like these in bull market are good opportunity to find next set of stocks setting up for a breakout once selling is over.
One of the easy ways to find stocks holding up well is to focus on momentum stocks. For that I look at stocks that have gone up at least 80% from 52 week low and is within 15% of 52 week high.
A stock up 80% from 52 week low is a proven horse. If these stocks during market or sector correction hold on to their gains then it is even better indicator. It tells us that buyers are not willing to sell easily or there are new buyers willing to buy at these levels so any selling is absorbed by them.
In order to set his up in Telechart you can create a scan for these kind of stocks.
c/minl252>=1.8 and minv3.1>=100000 and c>=.85*maxh252
If you run the scan today you will get around 109 stocks. Not every one of those is worth tracking as some are establishing a downtrend. If you just focus on the stocks that are having orderly correction or going sideways you will get around 6 to 10 good candidates to watch.
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