When the market is down, you’ll be able to see which shares Wall Avenue could also be pumping cash into. So on a Monday morning when the markets are down, this lets you spot shares which are bucking the intraday pattern.

When you go to your Predefined Scans below Bullish Technical Indicators, you’ll be able to see which shares are experiencing sizable inflows. Let’s zero in on the Moved Above Higher Bollinger Band checklist.

FIGURE 1. PREDEFINED SCAN. We’ll give attention to the final row, highlighting the shares which have moved above the higher Bollinger Band on a day when shares are largely declining.Picture supply: StockCharts.com. For academic functions.

Clicking on that choice and arranging the subsequent web page by “U” (Universe), the best large-cap inventory with the strongest StockCharts Technical Rank (SCTR) rating was Applovin Corp (APP). APP additionally held the highest spot on the High 10 SCTR Report within the Giant Cap, High 10 class.

FIGURE 2. TOP 10 SCTR STOCKS ON OCTOBER 21, 2024. Applovin occupies the primary place with a 99.9 SCTR rating.Picture supply: StockCharts.com. For academic functions.

A Little Background on Applovin Corp

Even in the event you’ve by no means heard a lot about Applovin Corp—a tech firm specializing in cellular app advertising and marketing and monetization options—you continue to will in all probability acknowledge the title, as it has been exhibiting up on the SCTR stories for fairly a while.

When you do your analysis, you will discover that Wall Avenue has been exceedingly bullish on this inventory for fairly a while. You need to begin with StockCharts’ Image Abstract; this gives you elementary and technical information to start your analysis. For instance, APP’s one-year efficiency was a powerful +322.7%. However in the event you’re coming in late to the sport and considering scooping up shares of APP, you will need to examine the technicals to see the place entry level would possibly current itself.

Let’s take a look at a every day chart of APP in gentle of the Bollinger Bands scan.

Applovin’s Day by day Value Motion

FIGURE 3. DAILY CHART OF APP. Word the SCTR line over the whole 5 months (it has been that prime for a fair longer interval).Chart supply: StockCharts.com. For academic functions.

Within the SCTR line and APP’s relative efficiency towards the S&P 500 ($SPX) within the panels above the worth chart, be aware the next:

• APP’s SCTR line has been largely above 90, indicating exceeding technical power over a number of timeframes and indicators.
• When you have a look at the blue arrow pointing to relative efficiency, discover how the SCTR line prefigured APP’s superior efficiency towards the S&P 500 lengthy earlier than it started outperforming the index. Though no indicator is a assure, the SCTR line is a powerful instrument for signaling the potential outperformance of a given inventory.

Wanting on the worth chart, because the Predefined Scan identified, APP broke above the higher Bollinger Band, which is about to the second commonplace deviation. Solely in uncommon circumstances can any inventory preserve such a place. Sometimes, 90% to 95% of a inventory’s worth actions happen throughout the Bollinger Bands. There is a sturdy probability of a pullback.

Nevertheless, as soon as a powerful pattern will get underway, worth will usually “stroll” the Bollinger Bands—on the upside, it tends to “hug” the higher band, and the other is true of a powerful downtrend.

The September worth motion illustrates this dynamic. On this case, it was significantly sturdy as APP’s “stroll” occurred above the higher band, signifying sturdy bullishness because the inventory worth rallied.

Within the case that it pulls again…

• Look to the center Bollinger Band for a possible bounce.
• If APP’s worth falls under the center band, you’ll possible discover assist within the vary highlighted by the blue rectangle, because it encompasses a market assist degree and the realm surrounding the decrease Bollinger Band.

What does momentum appear like?

• Based on the Chaikin Cash Circulation (CMF), shopping for strain appears sturdy, regardless that it is receding barely.
• However a volume-based momentum studying from the Cash Circulation Index, aka MFI (which is sort of a volume-weighted Relative Energy Index indicator), exhibits that it was “overbought” and is now receding, forming a bearish divergence which warns of a pullback.

In the meantime, APP’s SCTR studying stays strongly bullish. So, if you wish to enter a place, regulate the potential assist ranges outlined within the chart (particularly, the dynamic Bollinger Band ranges and the market-based assist degree within the blue rectangle).

If market circumstances change, particularly if new and surprising market elements come into play, then a cease loss a couple of factors under $123 could be ample sufficient so that you can reassess the scenario and readjust your setup for a brand new entry level.

Tip: Make StockCharts’ Predefined Scans A part of Your Buying and selling Routine

Incorporating Predefined Scans into your market evaluation routine is like having a radar exhibiting which shares are prepared to maneuver. You will know what to analysis, and after that, analyze the inventory chart to find out when and the place to leap in.

The Backside Line

Utilizing one in every of many StockCharts instruments to scan the market is a great and environment friendly strategy to get an edge in recognizing alternatives. This text targeted on shares that bucked the intraday downtrend. By means of a couple of scans, I discovered APP, which has been on the highest of the SCTR checklist for fairly a while. This kind of scan routine may help you discover different market prospects sooner or later. Keep in mind: do not go away alternatives to probability. Scan early and sometimes.

Disclaimer: This weblog is for academic functions solely and shouldn’t be construed as monetary recommendation. The concepts and techniques ought to by no means be used with out first assessing your personal private and monetary scenario, or with out consulting a monetary skilled.