ATSG, DCO, GBT, HOV, MS, HELE, SCHW, ESTC, ADBE, & DIS
| ADBE Adobe Systems Incorporated ($385.50) - Software - ADBE broke a double top at $392 and is now trading at new all-time highs. This breakout marks the seventh consecutive buy signal, confirming that demand is in control. This stock is a 4 for 5’er that has maintained a long-term RS buy signal since August 2015. From here, initial support sits at $364. Note earnings are expected 6/11. |
| ATSG Air Transport Services Group Inc. ($22.32) - Aerospace Airline - Air Transport Services shares broke a double top at $23 today, marking a fourth consecutive buy signal. This 3 for 5'er moved to a positive trend in April and has recently experienced a flip to positive monthly momentum, suggesting the potential for further gains. Okay to add long exposure here as the weight of the evidence is positive. Note that initial support is offered at $19.50. |
| DCO Ducommun Inc ($36.06) - Aerospace Airline - Ducommun shares broke a double top at $35 today, marking a second consecutive buy signal before advancing further to $36. This 3 for 5'er ranks 4th of 42 names included in the favored aerospace airline sector RS matrix and moved to a market RS buy signal in mid-May. The technical picture is improving. From here, the bearish resistance line for the stock is found at $42 and intial support is offered at $31. Note that DCO is heavily overbought with today's action. |
| DIS The Walt Disney Company ($122.87) - Media - DIS broke a double top at $124 on Thursday, marking the second consecutive buy signal on the chart. DIS is a solid 4 for 5’er that has maintained superior strength versus the market since September 2008. In late April, DIS returned to a positive trend. Demand is in control. From here, support is offered at $116 and $100, the bullish support line. |
| ESTC Elastic NV ($84.94) - Software - Shares of ESTC pulled back on Thursday to break a double bottom at $85, initiating a shakeout pattern and making the stock actionable on the first reversal back up into Xs. The move comes after 5 consecutive buy signals and reentrance into a positive trend. The 4 for 5’er ranks 12th out of 113 names in the favored software stock sector matrix and recently returned to an RS buy signal versus the market on May 12th. Additionally, weekly and monthly momentum are now both positive, suggesting the potential for higher prices from here. Demand is in control. Resistance resides at $90 while further support is offered at $78. |
| GBT Global Blood Therapeutics Inc ($66.30) - Drugs - Global Blood Therapeutics shares reversed lower today, breaking a triple bottom at $66 to mark a fourth consecutive sell signal. Today's break also signifies a negative trend reversal for the stock, demoting GBT to a 2 for 5'er. Additionally, both weekly and monthly momentum have recently flipped negative, suggesting the potential for further declines. Avoid. |
| HELE Helen of Troy Limited ($183.12) - Household Goods - Shares of HELE broke a double top at $188 on Thursday to give a third consecutive buy signal and complete a bullish catapult pattern. The 5 for 5’er ranks 8th out of 31 names in the favored household goods stock sector matrix and demonstrates positive long-term relative strength versus the market, remaining on an RS buy signal since July of 2009. In addition, HELE recently reentered a positive trend on April 29th. The weight of the evidence is positive here; however, those looking to initiate new long exposure may consider HELE on a pullback, as it is nearing the top of its trading band. The next level of resistance resides at $198, the stock’s all-time high, while initial support is offered at $178. |
| HOV Hovnanian Enterprises, Inc. ($20.01) - Building - Hovnanian shares broke a double top at $18 today in response to earnings, marking a third consecutive buy signal before advancing further to $21. Today's break also signifies a positive trend reversal for the stock, promoting HOV to a 5 for 5'er. HOV ranks 6th of 72 names included in the favored building sector RS matrix. Additionally, HOV moved to a market RS buy signal in mid-May, confirming long-term strength. Demand is clearly in control - however, today's action puts the stock in heavily overbought territory. Those considering long exposure may be well served to wait for a pullback, noting that initial support is offered at $15.50. |
| MS Morgan Stanley ($47.74) - Wall Street - Morgan Stanley shares completed a bullish catapult with today's break at $48, marking a second consecutive buy signal. This 3 for 5'er returned to a positive trend in late May and has maintained a market RS buy signal since June of 2013. Additionally, MS ranks in the top half of the wall street sector RS matrix. Although demand is in control, those seeking long exposure may be well served to wait for a pullback, as MS is heavily overbought here. Note that support is offered at $44 and that the stock carries a yield of 2.98%. |
| SCHW The Charles Schwab Corporation ($40.20) - Wall Street - Charles Schwab shares returned to a buy signal with a double top break at $40 today. This action signifies a positive trend reversal for the stock, promoting SCHW to a 3 for 5'er. Additionally, SCHW has maintained a market RS buy signal since December of 2016 and recently witnessed a flip to positive weekly momentum, suggesting the potential for further gains. Okay to add here on the breakout as the weight of the evidence is positive. Note that support is offered at $32 and that SCHW carries a yield of 1.82%. |
