Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Why You Should Look for Stocks Climbing Out of a “Big Base”

Companies / Tech Stocks Oct 09, 2020 - 03:16 PM GMT

By: John_Mauldin

Companies

By Justin Spittler : Today I’m going to show you a trading tactic so simple, yet so reliable, it’ll allow you to predict when certain stocks will skyrocket days or even weeks in advance.

Master this tactic and it’ll feel like you’ve got a “cheat code” to the markets. Let me show you exactly how it works. In short, you want to identify stocks that are climbing out of a “base.”

A stock forms a base when it trades within a narrow price range for a period of time. In other words, the stock isn’t crashing, and it’s not zooming higher (yet).


It’s essentially trading “sideways.” Now, many people disregard sideways price action.

They think it’s “no man’s land.” A place where money just sits stagnant. They’re only focused on charts that showcase big moves to the upside or downside. This is a big, costly mistake.

You Should Learn To Love Sideways Price Action

I’m extremely interested in stocks that form “big bases.” In other words, stocks that trade sideways for a long time.

Why? A strong base often serves as a launch pad for an explosive move where a stock leaps 30–50% higher within weeks, sometimes within days.

And the more time a stock spends carving out its base, the higher the upside. I’ve found that the biggest moves come right as a stock starts climbing out of a strong base.

Earlier this year, this exact setup presented itself. You’re looking at a chart we showed to our premium subscribers in an urgent alert on April 27.

Fastly (FSLY) is an internet infrastructure company and “edge computing” pioneer. Many of the world’s biggest, most disruptive companies use Fastly to rapidly and securely deliver digital content to users around the world.

Not only was it at the forefront of one of our favorite trends, its chart told us that after years of sideways price action it was time to pull the trigger.

You can see Fastly was “carving out a base” for 12 months before starting its climb higher. As we told our subscribers, this action suggested Fastly “could be in the early innings of a major move higher.”

And that’s exactly what happened. Less than 2 weeks later, Fastly erupted: soaring 47% in just one day.

Take a look:

Now, collecting 47% gains in one day is not typical. But it is possible if you hunt for stocks that’ve carved out strong bases. And as you can see, Fastly didn’t stop there.

It kept roaring higher. After a year of “sitting on the launchpad,” Fastly took off with unstoppable force.

If You Want To Find The Next Big Winner, I Recommend Using This Reliable Tool

Look for a world-class stock like Fastly that’s carving out a long-term base. And pounce when the stock has successfully climbed out of that base. It’s that simple.

The Great Disruptors: 3 Breakthrough Stocks Set to Double Your Money"

Get our latest report where we reveal our three favorite stocks that will hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Justin Spittler

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

John Mauldin Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in