What are these two stocks and which earns an “honorable mention?”
Let’s start with Verizon (VZ):
Despite selling-off through most of 2015 (down from $51.00 to $43.00 per share), Verizon shares rebounded sharply in 2016 (especially January) to breakout to a fresh new 52-week high.
Volume surged initially but trailed off since January, giving us a bit of pause.
However, Verizon shares would remain bullish as long as they remain above the $51.00 per share level.
Take profits on any excursion back under $51.00.
The second stock, Johnson and Johnson (JNJ), tracks a similar course:
More than Verizon, Johnson and Johnson exhibited a flat/sideways trend through 2015.
Similarly, share prices surged in January on higher volume ahead of the recent breakout to new 52-week highs.
The key pivot for JNJ is the $106.50 per share level – it’s bullish above but “cautious/bearish” beneath.
We’re interested in following these two bullish candidates to give us clues as to whether these are new breakout bullish candidates (if price remains above these pivot levels) or else ‘traps’ in an ongoing bearish market environment.
Oh, our honorable mention. Though it has pulled back (retraced) as we begin March, Coca-Cola (KO) deserves a mention as a strong stock “near” new 52-week highs.
This article is brought to you courtesy of Corey Rosenbloom from Afraid to Trade.