GM breaking out of C&H around 64 on decent volume. Do you buy into the "measured move" theory where the target for the stocks advance should be same as depth of the cup? Here cup is ~16 pts deep giving a target of 80 for the breakout.
RACE what do you think of this? Lots of volume on earnings run-up. Kinda made a shelf or flag. Gaps up today on above avg volume. Showed up on my scanner.
ASPN. These guys make thin films that are used in EV batteries. Extended. Wait for pullback to DMA?
Derek,
Congrats on MRAM!👍👍
GM This stock looks good and some sanity is coming back into the automotive sector after a crazy move in RIVN LCID and others. It was getting a bit frothy.The depth of the cup is 27%, and if this stock advances to $80 then I would sell in a New York minute. I expect a 20% move to the $76 area. But a swing trader will be starting to take profits at $70. With this chart is is easy to see the selling on the left side of the cup. That has changed now as it is being accumulated and the big blue bars are showing up.
RACE This stock is extended. It would be chasing performance to buy it here, and we would likely be shaken out on a normal 10% retracement. You can see the blue bars of accumulation prior to the breakout. GM may be two to three weeks behind this one? If you do buy this stock, then use that 5% stop-loss.
ASPN This is a thin stock with wide spreads and a $2 billion market cap, and has been up 9 of the past 10 weeks. There is no base that it is breaking out from. The stock is just running on momentum, and may run for a long time. Fundamentally, they are showing a solid 20% or better sales growth year over year.
They are definitely in a hot sector as they help with battery preservation and efficiency. If you were to take a swing at this GM or RACE then a 5% stop loss is necessary. GM provides the best risk/reward at this point in time.
I hope this answers your questions.
Regards,
Marty
