Hey, Ross here:
And let’s start a brand-new trading week with an actionable trade idea.
Chart of the Day
On Holding (ONON), the popular athletic shoemaker, has been a favorite of mine since the beginning of the year.
Hot retail brands have been some of the biggest success stories in the stock market, so I am always in search of a budding name with big sales growth like OnCloud.
The company is growing revenue at around 80% per quarter so this stock is in play until those numbers start slowing down.
ONON made new 52-week highs this week before falling 6% in Thursday’s selloff – pulling back to the 21-day moving average, which has supported this stock for most of the current rally.
Friday proved that 21-day moving average support thesis further, with the stock “bouncing” off the support level.
I told my paying subscribers to get in Friday morning – but there’s still a buyable opportunity here.
If you take advantage of this opportunity, I recommended putting a stop loss below the 50-day moving average.
Insight of the Day
The failed follow through to the downside after Thursday tells me positive market momentum is extremely strong.
After the selloff last Thursday, the highest probability scenario was a continued follow through to the downside – at least for a few days – given how far the market has run already.
But instead, stocks defied the pullback to rip higher on Friday to end the week strong.
This tells me the underlying positive trend is extremely strong.
This is good news, because it means it’s the perfect time to deploy my breakout strategies to spot stocks about to make big surges higher.
So, if you don’t have these breakout strategies in your toolkit already…
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
