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

During the past week, the strength we have been discussing in this newsletter in recent months has continued, with new ATHs in the S&P and Nasdaq. 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 will add to during the next 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!

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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

For the past three months price has struggled to break above the pivot high from 2015 at 7124. Whilst price is supported by the weekly 200sma, daily 50sma and 7000 round number. In turn, this has created a tight trading range for the index.

The Sublime trend filter continues to remain green on the weekly timeframe, with price using both the 50sma and 200sma as support.

On the daily timeframe below, we can see that since mid-June price has been using the 50sma as support. The Sublime trend filter is alternating between grey and green, 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

Breedon Group – BREE

A stock with a mixed history. The performance in July to date is following that of June, by displaying an indecision candle. This is to be expected following bullish moves in April and May.

On the weekly timeframe, price is trading above the 50sma and 200sma and the Sublime trend filter is green. Following a break above the wPiv21 in April, price retested this level at £1.

On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma. This week the Sublime trend filter was a mix of green and grey, indicating indecision. At this stage, given the current price action, we will be applying patience and waiting for price to dictate the next move. We will share any signals with our Phoenix members. This is a stock to watch but not one that is high on our watchlist, given its history of performance.

Croda International – CRDA

A stock we have been in since last year, this week price created an ATH at £76.88. July’s performance to date has continued the bullish trend with a gain of 3.8%. This follows June’s increase of 5.4%. Year to date price has increased by an impressive 16%.

On the weekly timeframe, price is trading above the 50sma and 200sma and the Sublime trend filter is green. Since the breakout from consolidation in May, price retested the wPiv21 and £70 round number, which has acted as a strong area of support. 

On the daily timeframe below, price is above the 20sma and 50sma and the Sublime trend filter is green. The patience we discussed last week appears to be paying off as price is displaying evidence of a linear trend forming. 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.

 

Polar Capital Technology Trust – PCT

A stock with a history of trends and volatility, this week created a new ATH at £24.64. Since December 2020 price has been in a period of consolidation, between the ATH set in February 2021 at £24.46 and the £20 round number.

On the weekly timeframe, price is trading above the 50sma and 200sma and in the past two weeks, the Sublime trend filter has switched from grey to green, in turn indicating a trend could be forming.

On the daily timeframe below, price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. All MAs are currently aligned. We will now apply patience and see if price breaks clear of the recent ATH and form a linear trend. We will share any breakout or pullback signals with our Phoenix members.

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

June’s candle completed another bullish month in the S&P with a gain of 2.6%. To date July is showing signs of continued strength, however, the month has some time remaining and the indices are due to pullback.

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 remains green. Over the past week, price has confirmed the break out from the range that had been formed going back to May, in turn producing a new ATH at $4,363. The bulls remain in control of the S&P, and we continue to look for stocks that are outperforming the index.

US STOCKS

American Homes 4 Rent – AMH

As a relatively new stock floating in August 2013, a strong history of trends is not available. However, since price broke above the previous year’s high at $32 in March 2021 price has formed a bullish, linear trend. To date, price has increased by 3.8% in July and some 35% year to date.

On the weekly timeframe, price is trading above the 50sma and the 200sma and the Sublime trend filter continues to be green, confirming the bull trend.

On the daily timeframe below, price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. The MAs are neatly aligned, indicating a linear trend. The next area of resistance is the $50 round number. We have mentioned this stock several times in our Phoenix community and will continue to share trading opportunities as they arise.

Arista Networks – ANET

Another relatively new stock, with a history in two parts; a trend was in place between November 2016 – February 2018 where price increased by over 200%, followed by a long period of consolidation up to May 2021. Price broke above the pivot high from April 2019 at $331 in May 2021 and has subsequently formed a strong trend.

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

On the daily timeframe below, price is above the 20sma, 50sma and 200sma, and the MA’s are neatly aligned. The Sublime trend filter is green. Since breaking above the wPiv21 level in May 2021 price has used the 20sma as support. Price is currently faced with immediate resistance at the $400 round number. If price can close above this level and form a linear trend, opportunities may arise, which we will share with our Phoenix community.

Cubesmart – CUBE

A stock with a history of trends. Following the break out of five years of consolidation, price has made a bullish move with a 38% increase. July’s performance to date, with a 2.5% increase, is now the eighth consecutive month with a gain in price. 

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

On the daily timeframe below, since breaking above the wPiv21 price has used the 20sma as support. The daily trend filter is green and price is above the 20sma, 50sma, and 200sma. Price is now developing into a potential long-term linear trend which it has also achieved in the past, increasing the likelihood of this occurring during the current trend. The next area of resistance is the $50 round number. We will continue to update our Phoenix members as the trend develops further.

Equifax – EFX

The history of this stock has great appeal. A 27% move in April has been followed by some indecision which is to be expected as price takes a breather. 

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, the 50sma and the 200sma. The Sublime trend filter is also green. Following the gap up from a positive earnings release which saw price break and close above $200, price has further strengthened. We will continue to share signals as price works its way towards $300 with a strategically placed stop-loss in play if price decides to pull back and fill the gap.

Extra Space Storage – EXR

A stock with an excellent history of performance. Following the break above the Piv21 at $124 price has increased by 30%. July’s candle is the sixth consecutive month of price gain.

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

On the daily timeframe below, in the past week price created a new ATH at $172. Price is trading above the 50sma and 200sma and the Sublime trend filter remains green. Phoenix members will continue to be updated with compound opportunities as this stock continues its bullish move towards the next area of resistance, the $200 round number.

Life Storage – LSI

A stock with a history of sustained trends running for multiple years. The current trend is continuing this pattern, with July’s candle being the eighth consecutive month of price gain. Since breaking the previous year’s high at $80, price has gained an impressive 37.9%.

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

On the daily timeframe, price is above the 20sma, 50sma and 200sma, and all MAs are angling up, demonstrating a strong trend is in play. The Sublime trend filter remains green. When price initially broke above the previous year’s high at $80, it used the zonal area between the 20sma and 50sma as support. As the trend has developed, it has become more linear and price has used the 20sma as support. Price this week created a new ATH at $113. A continuation pattern above this level will offer Phoenix members an opportunity in this very bullish stock. We will share the relevant breakout and pullback signals.

Public Storage – PSA

Another storage company rounds out this week’s stocks. Similar to the storage stocks listed above, price has a good history of trends and has recently experienced a long period of consolidation. Price recently closed above the $300 round number.

On the weekly timeframe, price is trading above the 50sma and 200sma and the Sublime trend filter is green. Since the breakout from consolidation in April, price retested the wPiv21 at $267, and has since moved higher.

On the daily timeframe, price is above the 20sma, 50sma and 200sma, and all MAs are angling up, demonstrating a strong trend is in play. The Sublime trend filter remains green. With price retesting the $300 round number, a bounce and continuation pattern above this level could offer Phoenix members an opportunity in this very bullish stock. We will share the relevant breakout and pullback signals.

The S&P 500 and Nasdaq 100 both created new ATHs this week. The Dow 30 is showing renewed strength and we expect it will follow in due course with a new ATH. Over the coming weeks, we expect to see further momentum build, resulting in more stocks breaking out and continuing their bullish trends. 

To get up to speed on how to accurately analyse the markets,complete 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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