Welcome to our weekly newsletter, where we offer insights into stock setups that we share with our Phoenix members.

In last week’s newsletter, we discussed the main indices rebounding, with the bulls regaining control, resulting in the main indices closing above the 200 simple moving average (SMA). This week price has consolidated above these key levels.

Our position remains that the bull market, which commenced in 2008, remains intact, but we are currently standing aside until a clear direction is formed in the main indices.

At Sublime Trading, we have a clear trading plan that governs our approach. This is the value of our education programme, where we teach members the right techniques to manage in all market conditions.

Let’s get into this week’s newsletter!

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Here are how the best-performing UK & US stocks, as picked out by our scanning process, have
performed this week.
For a glossary of terms click here.

OUTPERFORMING STOCKS COVERED THIS WEEK

UK Stocks

US Stocks

FTSE 100

On the monthly time frame, the strength displayed in December has continued into January. December closed with a 4.6% gain and January’s bullishness has already resulted in a 2.8% gain to date. Price has broken out of last year’s range and is now approaching the next major area of resistance is the monthly pivot level at 7727.

On the weekly time frame, the Sublime trend filter is green. Price is trading above the 50 and 200 SMA. This week price reached a key pivot level, and we await to see if this level acts as resistance.

On the daily time frame below, during January price retreated to the 50 SMA where it found support. Price has subsequently bounced and is currently trading above the 20, 50. Price is also trading above the 200 SMA. The Sublime trend filter is green. Our overall bias remains bullish, and we continue to look for stocks outperforming the Index.

UK STOCKS

3I Infrastructure – 3IN

A stock that originally floated March 2007, price lacked any clear direction until October 2014; price then formed a strong trend until the pandemic in March 2020. On the monthly time frame, price has been bullish in recent months, rising strongly since October last year, however, January has shown indecision in the first part of the month with a 1.2% decline.

On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green. In the first week of January price displayed a strong reversal candle, and since then price has weakened. This week price has displayed an indecision candle.

On the daily time frame below, this week the Sublime trend filter has maintained its red status. Price is currently trading below the 20 and 50 SMA, but it remains above the 200 SMA. This week the 20 SMA crossed below the 50 SMA. Price has been volatile over the past three weeks. A continuation pattern above the all-time high could offer Phoenix members an opportunity in a stock that has a history of strong trends. The next level of resistance is the £4 round number.

Safestore Holdings - SAFE

A stock with a long-term trend dating back to January 2014. More recently, since price broke above a key pivot level at £8.87 in May last year, price has gained 37%. Price in January pulled back, with a decline of 10.2%. February is currently displaying an indecision candle.

On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green. This week price continued its move higher following the bounc off the pivot level at £12.13.

On the daily time frame below, the Sublime trend is red. Price is below the 20 and 50 SMA, but above the 200 SMA. We will continue to monitor this stock and share updates with our Phoenix community, should strength return.

 

St James’s Place – STJ

In 2021 we highlighted this stock as one to watch, and it subsequently rewarded our Phoenix community with a strong, bullish move. Price is currently in a wide range which commenced in July last year.

On the weekly time frame, price is above the 50 and 200 SMA. The recent weakness has resulted in the Sublime trend filter switching to grey. Price has bounced off the 50 SMA, displaying current strength.

On the daily time frame below, this week price has shown strength to close back above both the 50 and 200 SMA. The Sublime trend filter is currently red. We will continue to update Phoenix members of compound opportunities if this trend develops further.

If you have watched the 4-part series and are keen to get started, then book yourself in for a 1-2-1 call with a member of the Sublime Trading team.

S&P 500

The year has started with weakness in the S&P 500; January declined by 5.8%. January is often a weak month for the S&P 500, particularly following strength into the end of the previous calendar year. Whilst February is currently displaying an indecision candle.

On the weekly time frame, price continues to trade above the 200 SMA, but price has weakened to the 50 SMA. Both this week and last week price has displayed an indecision candle.

On the daily time frame below, price made a new all-time high at 4820 on 4 January, before price retreated to the 50 SMA. Price subsequently weakened further, to trade below the 200 SMA, before recovering ground over the past two weeks. Price is currently trading at the 50 SMA. This week the Sublime trend filter switched from red to grey. As stated in our initial commentary, we will wait to see strength to return to the main indices before committing further.

US STOCKS

Apple - AAPL

Apple is one of the most popular stocks in the NASDAQ. It has a history of impulsive trends but does suffer periods of pullback and consolidation. On the monthly time frame, price was bullish following the pandemic where price moved from $60 to $130. However, since then the trend has been less linear. In November price broke out to create an all-time high, however, since then price weakened with a decline in January of 1.6%. To date, price this month is displaying an indecision candle.

On the weekly time frame below, price is in a long-term uptrend with price trading above both the 50 and 200 SMA, and the Sublime trend filter remains green.

On the daily time frame below, price has regained strength to close back above 20 and 50 SMA. The Sublime trend filter is interchanging between green and grey. A continuation pattern above the current all-time high could provide further opportunities before the $200 round number, the next area of resistance.

AmerisourceBergen - ABC

This stock has an interesting mix of strong trends and long periods of consolidation. Price showed strength in a trend from January 2013 to May 2015. However, since then price action has been mixed, despite a recent all-time high. December was the first month in several years which displayed a bullish breakout bar, culminating in a 14.8% gain. That momentum continued into January with a further 2.5%, and February has also displayed a healthy gain to date of 3.9%. Price created a new all-time this week at $144.  

On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green. This week price is displaying a large breakout bar.

On the daily time frame below, the Sublime trend filter is green, with price trading above the 20, 50 and 200 SMA. In December last year price broke above a pivot zone at $129 – $130, before retesting the level. Price has since shown strength, gaining 9% since 26 January. The next area of major resistance is the $200 round number. We will monitor this stock to assess whether a linear trend can form, and we will update our Phoenix community accordingly.

Berkshire Hathaway - BRK.B

A stock with a history of trends lasting 1-2 years. We have discussed this stock in recent weeks, along with December’s newsletter – where we noted a potential breakout month. This assessment was correct, and price has subsequently made light work of the $300 round number, to create a new all-time at $323.

The Sublime trend filter is green on the weekly timeframe, and price is trending above the 50 and 200 SMA. Following the breakout described above, price retreated to the $300 round number and major pivot level, and subsequently regained strength.

The daily time frame below shows an impulsive move since price bounced off the 200 SMA in early December. Price is currently trading above the 20, 50 and 200 SMA. The Sublime trend filter is currently green. The longer the consolidation, the larger the breakout. With price breaking out from consolidation going back to May last year, we anticipate a strong trend to develop. We will update our Phoenix community on further opportunities in this trending stock.

ConocoPhilips - COP

A stock with a mixed history of trends and long periods of weakness. Price in February created a new all-time high of $95. Price was particularly bullish in January with a breakout and gain of 23%, and that momentum has continued into February to date.

On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green. Over the past two weeks, price has been challenged at the $94-95 zone.

On the daily time frame below, the Sublime trend filter is green. Price is trading above the 20, 50 and 200 SMA. Momentum has slowed in the past week, which is to be expected given the speed of its move from $67. The next area of resistance is the $100 round number. We will monitor this stock and share updates with our Phoenix community.

Hershey Company - HSY

Hershey is another stock with a strong performance in December that has continued into January. Whilst the historic performance is mixed, this stock has evidence of trending for long periods, as evidenced by the trend that occurred between February 2011 to March 2014. Since December last year price has been bullish with a gain of 13.7% to date.

On the weekly timeframe, price continues to trade above the 50 and 200 SMA, and the Sublime trend filter remains green. This week price is displaying an indecision candle.

On the daily timeframe below, price is trading above the 20, 50 and 200 SMA, and the Sublime trend filter is also green. Since price broke above a key pivot level at $183 on 8 December, price has made an impulsive move higher. Price has now reached the $200 round number, and we wait to see if this level will act as support or resistance. We will update our Phoenix members of any opportunities in this stock.

Raymond James Financial - RJF

This is a stock that has been in a strong trend for some time. Since breaking out above a key resistance level at $68 in February last year, price has gained 67%.  

On the weekly time frame, the Sublime trend filter is green, and price is trading above the 50 and 200 SMA. This week price is displaying a candle with a long wick above price, which we will need to monitor.

On the daily time frame below, price is trading above the 20, 50 and 200 SMA, and the Sublime trend filter is also green. In recent weeks price action has been mixed, and we await a clear direction, with higher highs and higher lows. The next area of resistance is the $200 round number. We will monitor this stock and update our Phoenix community on any opportunities.

W.R. Berkley Corporation - WRB

WRB is a stock that has been in a long term trend, but the quality of the trend has not been particularly good. This stock also has a history of bullish moves higher before quickly retreating, such as during 2019 and 2020. More recently, price has been bullish since bouncing off a key pivot level at $82, gaining 11.7%.

 

On the weekly time frame, the Sublime trend filter is green. Price has shown strength over the past two weeks with strong gains. Price is trading above the 50 and 200 SMA.

 

On the daily timeframe below, price is trading above the 20, 50 and 200 SMA, and the Sublime trend filter is also green. Given the erratic price action described above this stock is not high on our watchlist, however, we will monitor it and update our Phoenix community should a trend emerge.

This week the markets have shown signs of maintaining strength above the 200 SMAs. Once price consolidates further above this level in each index, we anticipate the bull trend, which commenced in 2008, will continue. We will continue to monitor our positions, and act according to our trading plan.

To get up to speed on how to accurately analyse the markets, consider completing the ‘Are You On Track To Retire Wealthy’ scorecard and unlock your FREE gift – Lifetime access to the Launchpad Investor Starter Kit priced £297 (+ VAT). 

Keep it simple. Keep it Sublime.

The ST Team


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