I’ve been playing around with a new scan that I call “Ascent” that focuses on stocks that have been beat down so badly, but lately there has been large spikes of volume, potentially indicating accumulation. One example of a stock that fit this specific chart pattern a few weeks ago is MGM. You’ll notice that soon after the extremely large volume activity it made a b-line straight up near it’s 200 moving average.
I’m still developing my own set of buy rules, stops, and potential targets, but below are a few examples of stocks that showed up tonight. I’ve kept a list of stocks that have showed up on the scans each night and track them and the results have been quite impressive. Should the markets break down from these levels I would expect these stocks to fall with them, but I wanted to do an initial post describing what this scan is all about and getting some potential trade ideas out there.
Earnings are driving this rise.
Issued guidance that was well received.
