Pocket Pivot: How to Read Demand Before the Breakout
A growth stock has spent seven weeks moving sideways between 46.80 and 52.10. The 50-day moving average sits at 48.90 and is still rising. On a quiet Tuesday the stock…
A growth stock has spent seven weeks moving sideways between 46.80 and 52.10. The 50-day moving average sits at 48.90 and is still rising. On a quiet Tuesday the stock…
A growth stock climbs from 18.40 to 39.10 in seven weeks, a gain of 112.5%. Most charts that go vertical like that give a large part of the move back.…
Two growth companies report on the same evening. The first posts revenue up 38% from the year-ago quarter, and the headline reads well. The second posts revenue up 33%, which…
A company lists with an offer price of $22.00, opens at 31.50, trades as high as 38.20 in its first session and closes at 34.10. Six weeks later it's trading…
A mid-sized company issues a press release before the open. It describes a new product as "transformational" and "category-defining," names a large partner, and quotes a market-size estimate in the…
Picture an index chart that looks healthy. It closed the week at a new high, its 50-day moving average is rising, and the heaviest volume sessions of the month were…
Picture two growth companies that pass the same earnings screen in the same week. Both reported quarterly earnings per share up more than 40% for two straight quarters, both sit…
A growth stock has climbed from 42.00 to 68.50 in fourteen weeks, and then it stalls. For the next seven weeks the weekly bars drift sideways. Price never trades above…
What O'Neil understood about growth stocks was not that they were predictable, but that they shared recognisable patterns before their biggest moves. His research involved studying the price and volume…