When swing trading, we like scanning for “strong stocks getting stronger.”
A simple, effective method for doing so is to identify stocks extended above their rising 200 day Simple Moving Average.
Let’s highlight the Top Three Trending Stocks right now under this metric:
Strongly trending stock NVIDIA (NVDA) tops our list of stocks extended (by percentage) above the 200 day SMA.
The last time we discussed this stock on the blog was April 18th, highlighting (correctly) the critical bullish support level.
Next up is NRG Energy (NRG) surging higher in a gap-up situation as the uptrend continues.
The third strongly trending stock of the day is Vertex Pharma (VRTX), a name that’s been popular on social media in part due to its uptrend and most recently with the gap-up above $ 160 per share.
Use these as starting points for additional research and trade identification – including our favorite retracement strategies – for future opportunities into these “strong stocks getting stronger.”
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Follow Corey on Twitter: http://twitter.com/afraidtotrade