Here’s How To Find Value In A Relative Strength Stock
Sometimes intraday relative strength
will give you an opportunity to get in on the “ground floor” if you know what to
look for. When a stock is making 52-Week Highs, a lot of people will
think that the stock just can’t get any better than that. Personally, I like to
think that the stock in question is a lot more attractive when I can find a
solid pattern from which to alert our members at TM.
09:50:01
Intraday
Setup Alert
SanDisk (SNDK)
has established 52-Week Highs in the early going. The stock is forming a
high-level consolidation, with follow-through entries being set above session
highs of 38.65, with current trade changing hands at 38.52, up 1.14.
The initial alert was put up because of SanDisk’s
out-performance of the broader market, but when the market decided to take a
breather, it was enough to take the steam out of its recent run. But, quite
often when a stock pulls back due to general market weakness, it’s an
opportunity to get in on the “ground floor'” off a solid-looking reversal based
on technical supports, pattern, and risk vs. reward.
The second alert went out to our members in the TM
chat room, but it was “up” to them to decide if there was really water to
be found down there. As the saying goes, “You can lead a horse to water, but
you can’t force him to drink.”