Finding a stock in the strongest industry in a strong sector using real-time top-down analysis.

In the weekend market roundup, I showed how you could buy some Energy stocks at the very bottom, starting with Energy Rotation analysis.

Here is a chance to carry out a similar stock finding mission on the Communications Services sector.

1) The Communications Services is the second-best performing sector today as of ~11:30 AM EST.

2) In that sector, the strongest industry is Integrated Telecommunication Services.

3) In that industry, I found $CNSL, which has positive and accelerating earnings growth in the last three quarters.

4) Short squeeze potential.

5) The stock is up today by 6.9%.

6) It is coming up from very close to the 52-week low.

7) Weekly broke out of Memory trendline resistance, and Backdrop candle color turned bullish (cyan) - note that it is just Monday of a new week!

8) Daily had displayed a bullish Headwind reversal signal a few days ago (did you watch the example of $HP that I discussed in the market roundup? That also had a bullish Headwind signal before it went up).

9) On Friday, the price went down with heavy volume, but today it failed to continue to go down. That might point to exhaustion move.

10) Price is at Pendulum/Price Extreme Low - a bottom catching location.

11) Bullish Pressure and U-Turn today.

12) Daily Flow color flipped from magenta (bearish) to cyan (bullish) while the U-Turn showed up. 

If price closes higher, especially if it can go above Friday's high (today or tomorrow), then it may be a buying opportunity.

1) I shared the long idea of $CNSL on 23rd Dec 2019. The Flow was bullish.

2) That was after it displayed the bullish Headwind reversal signal.

3) The stock has gone up slowly and has covered more than risk distance — time to book at least a partial profit.

c 1 2020-01-16_11-29-32.jpg 
Another live (not looking back) case of successfully letting profit run.

1) Suggested buying CNSL on 23rd Dec 2019.

2) Suggested partial profit booking at Upper Boundary on 16th Jan.

3) The remaining position has now given an even bigger profit. On 24th Jan 2020, while the market sharply reversed, CNSL went sharply up. It is now at a Memory resistance line. You may continue to hold the partial position with a trailing stop.

c 1 2020-01-26_1-09-34.jpg 

Disclaimer: This site is for educational purposes only, explaining the use of CUE systems and techniques. It is not for trade advice. Trading involves risk. You and only you are solely responsible for the outcome of your trades.

CUE Elite
CUE Global & CUE Finder
CUE Edge, Vital, Index
Metastock Software (One-Time)
Metastock Data/Subscription
Data Region