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.”

Chris Tyler