The following charts are weekly views with 10ma and 40ma plotted. All will be the focus for new trades for the coming week and represent positions that have already been established (but remain within buying range), add on opportunities or potential new initiations.
(Click any chart to enlarge)
Match Group (MTCH) continues to consolidate just above the 48.65 pivot in this stage 3 base. Big volume move following the .06 cent earnings surprise. Has formed a small ascending triangle and I’m stalking re-entry here above the post earnings report high of 51.74. EPS growth of +117% and +156% last 2 quarters with revenue growth +36% over the same period. Estimates on the rise with current expectations for 22% growth in 2019. If the pivot should fail as support or price continues to consolidate at this level, watch for 10ma support currently sitting just above 43 and on the rise.
ROKU (ROKU) is up 100% from its IPO base pivot and has formed a cup shaped base here. Possibly putting in a high handle as price is retesting the recent breakout level just below 59. Stock is once again digesting news of AMZN competing in the space but this news is anything but new. Triple digit eps growth at +106% and turned a penny profit versus estimates of a .15 cent loss in the recent quarter. Sales growth +57% in the same quarter. Would not be surprised to see a sideways to down drift at this level to allow the 10ma to catch up and shake out more weak hands following the recent headlines. I’ve got a position here just over $60 and will be looking for opportunities to add to it on strength.
I’ll be keeping an eye on Cargurus (CARG) if it can break out of this flag pattern on a move back over 50. Strong EPS growth of +50% and more than +45% revenue growth last 2 quarters. With nearly 9% of the float short and 4+ days to cover, might see an additional boost here with a squeeze.
Echo Global Logistics (ECHO) has reclaimed the 32.95 pivot after again finding support at the 10ma. The group as a whole has now drifted below the middle of the pack but with 3 consecutive quarters of triple digit EPS growth and 35%+ sales growth, the pattern here is hard to ignore. Finishing off this stage 1 base with a high handle might be exactly what was needed to shakeout the remaining weak hands before the next leg higher and a push towards 40. Group mates HUBG and CHRW have similar setups, so might be a good idea to keep those on your radar too, if long ECHO.
ServiceNow Inc. (NOW) broke free from this stage 2 base on base pattern last week and remains in buy range. From the #4 ranked group in the market with group mates TWLO, EGAN, PAYC, ZEN all hitting new highs; NOW posted +123% earnings growth and +41% sales growth last quarter. EPS estimates currently tagging +34% for 2019 and on the rise. Their 190% growth rate makes NOW the #9 fastest growing company in the MarketSmith database of over 7,000 stocks. I’ve got a position from 196.50 on last week’s breakout and I’m using the 10ma to manage risk. *Note several closes below the 10ma only to recover the following week.
Disclaimer: None of the presented content represents individual investment advice to buy or sell securities and the information provided is solely for informational, educational and entertainment purposes. Author is long NOW and ROKU at the time of this writing.