AAPL, ACGL, AMC, ARNA, BJ, CCXI, IBP, ROST, UHT, & ZM.
| AAPL Apple Inc. ($316.77) - Computers - Shares of AAPL rose Thursday to break a double top at $320, marking a fourth consecutive buy signal. This 5 for 5'er moved back to a positive trend at the end of March and ranks in the top half of the favored computers sector RS matrix. The stock has also been on an RS buy signal against the market since early-2004 and recently reversed back up into a column of Xs on its market RS chart at the beginning of May. The overall technical picture remains strong. Those looking to add exposure can consider AAPL at current levels or on a pullback as the stock may be nearing overbought territory. Initial support can be found at $304 with further support offered at $268. The potential for overhead resistance may come into play at all-time highs of $324 from the beginning of the year. |
| ACGL Arch Capital Group Ltd. ($27.51) - Insurance - ACGL returned to a buy signal on Thursday with a double top break at $27. This stock is a 3 for 5’er that has been trading in a positive trend since December 2001. Weekly momentum has been positive for three weeks, suggesting the potential for higher prices. From here, support sits at $21. |
| AIMC Altra Industrial Motion Corp. ($28.92) - Machinery and Tools - AIMC moved higher Thursday to break a double top at $29. This 3 for 5'er moved to a positive trend at the end of April and ranks 3rd out of 63 names in the machinery and tools sector RS matrix. The weight of the technical evidence continues to improve here. Note that the stock is currently at resistance from April, while initial support is offered at $24. |
| ARNA Arena Pharmaceuticals, Inc. ($56.34) - Biomedics/Genetics - Arena Pharmaceuticals broke a double top at $55 today to return to a buy signal before advancing further past resistance to $56. This 4 for 5'er returned to a positive trend in early April and has maintained a market RS buy signal since January of 2019, confirming long-term strength against the broader market. Additionally, monthly momentum recently flipped positive for ARNA, suggesting the potential for further gains. Okay to add long exposure here as demand is in control. Support is offered at $45. |
| BJ BJ's Wholesale Club Holdings Inc ($32.78) - Retailing - BJ's Wholesale broke a double top at $32 today in response to earnings to mark a second consecutive buy signal before advancing past resistance to a new all-time high of $33. This 3 for 5'er moved to a positive trend and market RS buy signal in March and has recently experienced positive flips of both weekly and monthly momentum. The weight of the evidence is positive but today's action has sent BJ into overbought territory. Those considering long exposure may be well served to wait for a pullback, noting that support is offered at $22. |
| CCXI ChemoCentryx Inc. ($59.20) - Biomedics/Genetics - Shares of CCXI reversed up into a column of Xs Thursday and broke a triple top at $60, marking a new all-time high. This 5 for 5'er moved to a positive trend in November of last year and ranks in the top quintile of names in the favored biomedics/genetics sector RS matrix. The technical picture continues to strengthen, however, those looking to add exposure may be best served to wait for a pullback or normalization of the trading band as CCXI is overbought. Initial support is offered at $55 with further support at $50. |
| IBP Installed Building Products, Inc. ($59.19) - Building - Shares of IBP reversed up into a column of Xs on Thursday, breaking a double top at $60 to give a fourth consecutive buy signal. The acceptable 3 for 5’er ranks in the top quartile of the favored building stock sector matrix and demonstrates positive long-term relative strength versus the market, remaining on an RS buy signal since November of 2014. In addition, IBP resides one box away from returning to a positive trend and remains actionable from an overbought/oversold (OBOS) perspective. The weight of the evidence is positive and those looking to initiate new long exposure may consider IBP at current levels or upon additional bullish confirmation with a move to $61, which would also push IBP past current resistance at $60. Initial support can be found at $56. |
| ROST Ross Stores, Inc. ($96.79) - Retailing - ROST broke a double top at $93 before moving higher to $99 on Thursday. This break marks the second consecutive buy signal on the chart for this 4 for 5’er within the favored retailing sector. ROST moved back into a positive trend in late March and has maintained a long-term market RS buy signal since February 2015. From here, initial support sits at $88. |
| UHT Universal Health RLTY Inc T ($89.56) - Real Estate - UHT returned to a buy signal on Thursday with a double top break at $93. This stock is a 3 for 5’er within the favored real estate sector that has maintained a long-term peer RS buy signal since June 2017. Additionally, UHT is trading well above the bullish support line and offers a yield of 3.06%. Demand is in control. New support has been established at the $87 level while overhead resistance sits at $100. |
| ZM Zoom Video Communications, Inc. Class A ($172.46) - Telephone - ZM broke a double top at $176 on Thursday, marking the third consecutive buy signal on the chart. This stock is a perfect 5 for 5’er that ranks in the top decile of the favored telephone sector RS matrix. ZM continues to trade well above its bullish support line that dates to January of this year. Demand is in control and the technical picture is positive. From here, initial support sits at $164 while overhead resistance is at $180. Earnings are expected 6/2. |
