ACN, APD, CGNX, CHE, ECL, LGIH, LOW, MA, NDSN & PYPL.
| ACN Accenture PLC ($193.17) - Business Products - Accenture shares returned to a buy signal with a shakeout pattern completion at $190 before advancing further past resistance to $192. This strong 5 for 5'er returned to a positive trend in early April and has maintained a market RS buy signal since 2002, confirming long-term strength. Additionally, ACN ranks in the top third of the favored business products sector RS matrix. The weight of the evidence is positive and long exposure may be added here with initial support offered at $176. |
| APD Air Products & Chemicals, Inc. ($240.54) - Chemicals - Air Products & Chemicals shares reversed up today to break a double top at $236, marking a third consecutive buy signal before advancing further past resistance to $240. This strong 5 for 5'er returned to a positive trend in early April and has maintained a market RS buy signal since May of 2019, confirming long-term strength. Additionally, APD ranks 8th of 43 names included in the favored chemicals sector RS matrix. Demand is in control and long exposure may be added here on an individual basis or via the DWA Chemicals Sector Portfolio, of which APD is a holding. Note that support is offered at $220 and $208. APD carries a yield of 2.23%. |
| CGNX Cognex Corp ($59.85) - Computers - CGNX gave a third consecutive buy signal on Monday with a triple top break at $59 and later continued higher to move past further resistance, resulting in a new multi-year high at $60. The 4 for 5’er ranks in the top quartile of the favored computers stock sector matrix and recently returned to an RS buy signal versus the market on March 17th and positive trend on April 9th. Demand is in control. Those looking to initiate new long exposure may consider CGNX at current levels or on a pullback as the stock is approaching overbought levels here. Note that support is offered at $54. |
| CHE Chemed, Inc. ($462.13) - Household Goods - Shares of CHE continued higher on Monday to give a third consecutive buy signal, completing a bullish triangle pattern with a break at $464 and later moving higher to match further resistance at $472. The 4 for 5’er resides in the favored household goods sector and demonstrates positive long-term relative strength versus the market, remaining on an RS buy signal since March of 2015. Additionally, CHE recently returned to a positive trend on April 7th and is actionable from an Overbought/Oversold (OBOS) perspective. The weight of the evidence is positive and those looking to initiate new long exposure may consider CHE at current levels. Past $472 the next level of resistance resides at $512, its all-time high, while initial support is offered at $416. |
| ECL Ecolab Inc. ($203.97) - Chemicals - Shares of ECL continued higher on Monday to break a triple top at $200, resulting in a second consecutive buy signal. The 5 for 5’er ranks seventh out of 43 names in the favored chemicals stock sector matrix and demonstrates positive long-term relative strength versus the market, remaining on an RS buy signal since October of 2013. In addition, ECL reentered a positive trend on April 9th and remains actionable from an Overbought/Oversold (OBOS) perspective. Demand is in control. From here, support is offered at $188. |
| LGIH LGI Homes, Inc ($78.03) - Building - LGI Homes completed a double top at $74 today, marking a fourth consecutive buy signal before advancing further to $78. Today's ascent also signifies a positive trend reversal for the stock, promoting it to a 5 for 5'er following a recent move back to a market RS buy signal. Additioanlly, LGIH ranks 5th of 66 names included in the favored building sector RS matrix. Demand is in control and long exposure may be added here, noting that initial support is offered at $64. |
| LOW Lowe's Companies, Inc. ($116.73) - Building - Lowe's shares broke a double top at $116 during today's action, marking a second consecutive buy signal before advancing to $118. This 5 for 5'er returned to a positive trend in April and has maintained a market RS buy signal since November of 2012. Additionally, LOW ranks in the top quartile of the favored building sector RS matrix. Demand is in control here and long exposure can be added. Note that support is offered at $108 and LOW carries a yield of 1.89%. Earnings are expected on 5/20. |
| MA Mastercard Incorporated Class A ($289.90) - Finance - Mastercard shares broke a double top at $284 today, marking a second consecutive buy signal before advancing past further resistance to $292. This 5 for 5'er returned to a positive trend in late April and has maintained a market RS buy signal since August of 2011, confirming long-term strength against the broader market. Additionally, MA ranks in the top half of the favored finance sector RS matrix and is a holding in the DWA Finance Sector Portfolio. Demand is in control and long exposure may be added here. Note that support is offered at $264. |
| NDSN Nordson Corporation ($173.01) - Machinery and Tools - Nordson shares broke a double top at $170 today, returning to a buy signal before advancing further to $174. This strong 5 for 5'er returned to a positive trend in April and has maintained a market RS buy signal since November of 2016. Additionally, NDSN ranks 3rd of 63 names included in the machinery and tools sector RS matrix and is a holding in the DWA Machinery & Tools Sector Portfolio. The weight of the evidence is positive and long exposure may be added here. Note that support is offered at $154 and that resistance is found at the all-time high of $180. Earnings are expected on 5/20. |
| PYPL Paypal Holdings Inc ($146.24) - Business Products - PYPL moved higher Monday to reverse up into a column of Xs and break a double top at $148, marking a fourth consecutive buy signal and a new all-time high. This 4 for 5'er moved back to a positive trend at the beginning of April and ranks 3rd out of 98 names in the favored business products sector RS matrix. The overall weight of the evidence continues to be positive, however, PYPL is now heavily overbought at current levels so those looking to add exposure would be best served to wait for a pullback or normalization of the trading band. Initial support can be found at $140 with further support at $116 and $108. |
