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

Following on from last week’s discussion, the main US indices again demonstrated continued strength, with a new round of all-time highs. The US markets are currently in a broad pattern of new highs followed by pullbacks to areas of support, followed by new highs. These favourable technical trading patterns give us confidence in continued momentum.

Looking deeper into the main indices:

  • The S&P 500, this week price tagged the 20sma before making a new all-time high of 4,431.
  • The Nasdaq 100, likewise tagged the 20sma and made a new all-time high of 15,186.
  • The Dow Jones 30, momentum has slowed in recent weeks but still managed to eke out a new all-time high of 35,196.
  • The FTSE 100, found strength following a period of consolidation to create a three-week high of 7,143.

The overall trend in the main indices remains bullish, and the probability remains weighted towards the continuation of the long-term bull trends established in 2009.

We continue to hold high-performing stocks in our portfolio, which we have been adding to during this round of breakouts. Good quality opportunities continue to present themselves, which allows us to diversify further. We continue to share setups and signals with our Phoenix members.

Let’s get into this week’s newsletter!

PS To get FREE lifetime access to our bespoke analysis tools used in these images and a host of other free essential goodies, complete the ‘Are You On Track To Retire Wealthy’ scorecard!

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

For the past three months price has struggled to break above the pivot high from 2015 at 7,124, however this week momentum returned and price cleared the 20sma and 50sma. Price is now faced with resistance at this Pivot level. As trend traders, we remain patient, and aware that long periods of consolidation are often followed by large breakouts and long trends.

The Sublime trend filter continues to remain green on the weekly timeframe, with price this week trading above both the 50sma and 200sma.

On the daily timeframe below, we can see that last week price pulled back to the pivot low of 13 May, and subsequently found strength to close above the 20sma, 50sma and 7,000 round number. The Sublime trend filter continues to alternate between green and grey, indicating price is in a period of indecision. However, our bias overall remains bullish, and we continue to look for stocks outperforming the Index.

UK STOCKS

Croda International - CRDA

A stock we have been trading since last year, this week price created an all-time high at £89.56. August performance to date has continued the momentum from July, with a 4.5% gain to date. Year to date price has increased by an impressive 34%

On the weekly timeframe, price is trading above the 50sma and 200sma, and the Sublime trend filter is green.

On the daily timeframe below, price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. The patience we have previously discussed is paying off, as there is evidence of a strong, linear trend. The bullishiness of the trend is demonstrated by small pullbacks not reaching the 20sma. We will continue to share signals with our Phoenix members, particularly if we see such a trend develop towards the next round number at £100.

Dechra Pharmaceuticals - DPH

A stock with a good history of trends, price is currently in a strong uptrend. Again, the momentum from July has continued into August. And this week price closed above the £50 round number.

On the weekly timeframe, the Sublime trend filter is green, and price is trading above the 50sma and 200sma.

On the daily timeframe below, price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. Since price broke above the major pivot level of £31 in August 2020, price retested this level several times and has since formed a bullish trend, using the 20sma as support. A continuation pattern above the £50 round number could offer Phoenix members an opportunity in a good trending stock.

 

Halma - HLMA

On the  monthly timeframe price is looking bullish overall. A strong end to July where price created a new all-time high has continued into August. Price is now approaching the £30 round number.

On the weekly timeframe, price is trading above the 50sma and 200sma, and the Sublime trend filter is green. 

On the daily timeframe below, price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. Price on the lower time frames does not look clean, with deep pullbacks. As price has now broken out to create a new all-time high, we need to see a linear trend develop. We will update our Phoenix community of any breakout or pullback opportunity in this stock.

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

Following last week’s pullback, this week price has been subdued, eking out a modest gain of 0.5%. July closed with a 2.3% gain, this being the sixth consecutive month of gains. Price created a new all-time high this week at $4,431.

On the weekly timeframe, price continues to trade above the 50sma and 200sma, and the Sublime trend filter remains green. 

On the daily timeframe below, price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. The bulls remain in firm control of the S&P, and we continue to look for stocks that are outperforming the index.

US STOCKS

Automatic Data Processing - ADP

A stock with a good history of trends, but also with periods of consolidation. July closed with an impressive 5.5% gain. Since price broke above the previous year high at $182 in March 2021 price has gained 17%.

On the weekly timeframe, price is trading above both the 50sma and 200sma, and the Sublime trend filter remains green.

On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma, and the Sublime trend filter is also green. Since price broke above the major pivot level at $182 price has been using the zonal area between the 20sma and 50sma as support. Price is now showing signs of developing a linear trend. The next area of resistance is the $300 round number. We will apply patience to assess how the trend develops and update our Phoenix community as any high probability trading opportunities present.

Danaher Corporation - DHR

The overall trend in this stock is strong, developed over a number of years.  over a number of years. Prior to the pandemic price rose to the $50 round number. Again, the momentum from July has continued into August with gains of 11% and 3% respectively. And this week price closed above the $300 round number.

On the weekly timeframe, price is above the 50sma and the 200sma and the Sublime trend filter is green.

On the daily timeframe below, this week price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. The moving averages are aligned, indicating a healthy, linear trend. With earnings out of the way, a continuation pattern above the $300 round number could offer an opportunity to Phoenix members to compound their current positions. The next area of resistance is the $400 round number.

Edwards Lifesciences - EW

A stock in an overall trend, but with periods of pullbacks. Since price broke above the previous year high at $92 in April 2021, price has formed a linear trend. July’s gain of 8% has been followed up with a gain to date in August of over 2%.

On the weekly timeframe, price is trading above the 50sma, and the 200sma and the Sublime trend filter is green, confirming a bull trend in play.

On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma. The Sublime trend filter is also green. Between April to June 2021 price formed a neat cup and handle formation, and has since continued higher using the 20sma as support. We will continue to share signals with our Phoenix community, as price works its way towards the next level of resistance, being the $200 round number.

Fortinet - FTNT

Price has been in a strong, impulsive trend since February this year, gaining some 102%. Price is now approaching rhe $300 round number.

On the weekly timeframe, price is trading above both the 50sma and 200sma, and the Sublime trend filter remains green. 

On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. Since breaking above the major pivot level of $152 in February 2021 price initially used the zonal area between the 20sma and 50sma as support. And in recent months the strength of the trend has largely kept price above the 20sma. The moving averages are neatly aligned, indicating a linear trend. We will continue to update our Phoenix community of any compounding opportunities in this high performing stock.

Gartner - IT

A stock with an interesting history. Price was in a strong trend September 2018, where it then entered a period of consolidation until price broke out in February 2021. Following this break out price has moved up some 72%, including a gain in August alone of 11.5%.

On the weekly timeframe, price is above the 50sma and the 200sma. The Sublime trend filter is green.

On the daily timeframe below, the Sublime trend filter is green, and price is above the 20sma, 50sma and 200sma. This stock requires a degree of patience as breakouts and gaps up are often following mini periods of consolidation. A continuation pattern above the $300 round number could off Phoenix members an opportunity.

Marsh & McLennan Companies - MMC

A stock in a long term trend since 2013. July’s bullish candle resulted in a healthy gain of 4.7%, and the momentum has continued into August, also with a gain to date of over 2%. 

On the weekly timeframe, price is above the 50sma and the 200sma and the trend filter is green.

On the daily timeframe below, price is above the 20sma, 50sma and 200sma and the Sublime trend filter is also green. Price action on the daily time frame is not as clean, demonstrating pullbacks and periods of consolidation. The formation of a linear trend above the $150 round number could offer the Phoenix community a trading opportunity. The next area of resistance is the $200 round number.

Nike - NKE

A well-known stock that has been in a long-term trend since 2009. Price rebounded strongly following the covid pandemic. Phoenix members took a position in September 2020, however, price subsequently went into a period of consolidation. June’s candle displayed a bullish move with a 13% gain and a breakout from six months of consolidation. This momentum has continued into July and August with gains of 8.5% and 3.8% respectively.

On the weekly timeframe, price is trading above the 50sma and 200sma, and the Sublime trend filter is green.

On the daily timeframe below, price is currently above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. Following the gap up June following earnings price has continued higher, on one occasion using the 20sma as support. Price created a new all-time high this week at $174. The next resistance level is the $200 round number. We will continue to update Phoenix members of any further positions in the stock.

Another week of new all-time highs in all three US indices. A good number of stocks continue to have record growth allowing our Phoenix members to compound and add more positions to the already profitable ones.

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 £197 (+ VAT). 

Keep it simple. Keep it Sublime.

The ST Team


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