Yahoo! Inc., Darden Restaurants, Inc., Genuine Parts Company: Stocks Ripe For A Pullback

technical chart lookCorey Rosenbloom: At the moment, three stocks have traded higher nine days in a row and may be ripe for a pullback.

Let’s highlight these three names from our simple scan and note potential opportunities from these lesser-known names.

We’ll start with Darden Restaurants (DRI):

All stocks will have the same logic but of course be sure to do additional analysis if you’re considering trading these candidates.

Each stock has closed nine consecutive days in a row higher in an impulsive move and logic suggests a pullback or stall is more likely than an extension well beyond 10 consecutive days in a row to the upside.

This is a mean reversion type of aggressive strategy.

The alternate method of trading these stocks would be to wait for the pullback/retracement (not trade short) and then buy shares as the pullback finds support.  This strategy allows you to play into strength but on a pullback.

Darden (DRI) would be cautious/bearish under $51.50 or else “breakout bullish” above it.

Genuine Parts Company (GPC):

Similarly, GPC is uptrending in a stable trend from March to present.

Fortunately, we can see a similar instance of consecutive up-closes that took place in February 2014.

Note the spike in volume and consecutive closes higher from $75.00 to $85 per share.

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