While the S&P 500 remains in an uptrend, despite more of a sideways pause last week, these four stocks are in "super-trends." Respecting moving average support levels and continually pushing to new highs, these are stocks to keep on the watch list for buying opportunities.
Helmerich & Payne (NYSE:HP), which was already in strong trend, has accelerated to the upside in February and March. Since May, the stock has been doing a pretty good job of respecting the 50-day moving average. Therefore, a pullback to the average presents one option for an entry point. A rising trendline intersecting near $90 presents another. If the price falls below the recent low at $96.51, watch for a decline into the trendline. Assuming the uptrend continues, the target will be beyond the high (yet to be determined). If the price drops below $85, a large correction is underway, and can thus be used as a stop. The stop can be moved up as new lows form.
Genworth Financial (NYSE:GNW) has seen a strong surge in March, and has more than doubled since the start of 2013. The price has been respecting the 100-day moving average since late 2012. Pullbacks to the average therefore provide a buying opportunity, and the average also aligns with a trend channel. If the price pulls back to the lower portion of the channel/100-day moving average, the top of the channel provides the target. $15 should provide adequate support, so a stop could be placed below there and moved up as new lows form.
E*Trade Financial (Nasdaq:ETFC) has been flying higher over the last seven weeks, creating a number of support levels which can be used for structuring trades. The 50-day moving average has been providing support, so a pullback to the average provides one potential long entry. A larger support region is between $20 and $19. A drop below $18.86 penetrates a major low, signaling potential problems. This level can therefore be used as a stop, and moved up as higher lows form. If the price pulls back to the entry areas, the target is between $25 and $26.
Harman International (NYSE:HAR) has seen multiple short burst higher followed by extended periods of more sideways movement. This pattern has still resulted in a very strong uptrend. Pullbacks toward the 50-day moving average--just above $100--may provide advantageous pricing, as well the $95 to $90 region which is the site of a former gap higher. Look for a target beyond recent highs with a stop not much below $90.
The Bottom Line
These stocks are currently very strong, and have been for some time. Trading strong stocks is one of the best strategies for trading an overall market uptrend. That said, strength comes and goes. It is still important to wait for favorable entries and control risk. Create a plan for how you will trade the stock, and stick to it. Keep the position size manageable--a single loss shouldn't have a large negative impact on trading capital.
Charts provided by Stockcharts.com
Disclosure - At the time of writing, the author did not own shares of any company mentioned.