The broader market enjoyed a nice reaction rally after Tuesday’s decline, but more strength could be seen ahead. Here’s three stocks to watch for another round of strength.
$AEO
American Eagle Outfitters ($AEO) has endured a five-day pull-back from highs, but continues to honor the important 13-period pivot-based EMA. Moreover, a bullish pull-back signal has fired, indicating that another round of strength could be seen in this stock.
Given that the stock has formed an Inside Day relationship, we could see a very nice breakout ahead. Watch 16.70 for bullish confirmation, with a target near $18.
$DVN
Devon Energy Corp. ($DVN) has been trending steadily higher the last two months of trading and is finally offering a nice pull-back buying opportunity. A new long signal has fired after price bounced off the 13-period pivot-based EMA.
Also, the stock has formed an Inside Day relationship, which indicates a key breakout could be seen. Watch 67.85 for signs of continued strength, with a target in the area of $70.
$IWM
The Russell 2000 iShares ETF ($IWM) has been trending higher within a solid channel and has offer a few nice buying opportunities along the way. The current long signal could pave the way for another nice advance to new highs within the trend.
Again, another Inside Day relationship has formed, which indicates another breakout opportunity. Watch $70.65 for signs of strength, with a target at $72 or above.
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Each of the signals above are from the PEMA Pull-Back system, which is included in my FREE 50-page eBook Profiting with Pivot-Based Moving Averages.
Like the Most Interesting Man in the World, I don’t always trade using moving averages…but when I do, I use the setups from the eBook – especially the Modified PEMA Crossover!
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Cheers!
Frank Ochoa
PivotBoss.com
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