Builder Constructing Higher Prices?
While one of my favorite lists of stocks to scan for patterns is the
three-month relative strength ratings of 90-99 (using the TradingMarkets.com
Stock Scanner), I also look at those in the three-month RS range of 80-89,
particularly when some of the stocks in the strongest industry groups are on
that list. Lennar Corp.
(
LEN |
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PowerRating), from the strongly performing
residential construction sub-sector, broke out of a running cup and handle on
its 20-day moving average on January 3, then pulled back and is now tracing out
a mini cup and handle above the prior formation.
This is signaling Lennar possibly constructing higher valuations
in the near-term, and potential profits for the short-term or swing trader.
Until tomorrow,
Duke