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Continuation Breakout Monday 2PM 8/05/2024

August 5, 2024 3 min read

Overall Sector and Industry Analysis

Date Range Analyzed:

2024-07-06 to 2024-08-05 (EST)

Sector and Industry Performance:

Observations:

  1. Automotive Retail Sector:
    • $LAD (Lithia Motors): The price has fluctuated but maintained around the high 280s over the last 30 days. Most noticeable was a decrease in average volume over the past 10 days, which could point to waning interest or consolidation.
  2. Healthcare Sector:
    • $INDV (Indivior PLC): Substantial gains, particularly towards the end of the period between $13.11 to $13.36. Increasing volume indicating a solid interest.
  3. Building Products Sector:
    • $WSO (Watsco Inc.): Strong rise to $467 before a decline to around $456, but high volatility and increasing volume suggest continued interest.
    • $PHM (PulteGroup Inc.): Stability and slight uptrends were seen, but slight corrections around resistance levels reflecting consolidation.
  4. Insurance Brokers Sector:
    • $GSHD (Goosehead Insurance): Faces resistance in high $87-$88 range and seems to be consolidating.
    • $KNSL (Kinsale Capital Group): Seeing higher highs, breaking through $450 but faces resistance around $451.25. Increasing trading volume showing strong investor interest.
  5. Pharmaceuticals Sector:
    • $TTEK (Tetra Tech): Mixed performance lately, peaking at $231.69, but a pullback and consolidation could be seen.
  6. Banks – Regional Sector:
    • $NYCB (New York Community Bancorp): Highly traded with decent volatility, but overall, presents a stable performance.

Key noticeable trends:
The markets show sector-specific performance variations with higher bullish volumes observed in pharmaceuticals and insurance-related stocks. Tech and regional banks showed stable but less aggressive patterns.

Ticker Performance Prediction:

Likely to Go Up:

  1. $INDV – Strong upward momentum with increasing volume.
  2. $KNSL – Breaking resistance and continuing volume rise.
  3. $PHM – Minor corrections but range-bound between supports and resistances, likely to see a breakout.

Strong Bullish Signals:

  • $INDV – Consistently higher closes with higher volumes in the last 10 days.
  • $KNSL – Sustained breakouts above resistance levels with volume confirmations.

Individual Stock Analysis:

Indivior PLC ($INDV)

  • Support Levels: $13.11, $13.09, $12.97
  • Resistance Levels: $13.24, $13.36, $13.40

Price Action Prediction:
Next 2-3 Days: Likely upward movement towards the $13.36 resistance level. Break above $13.40 could see momentum carrying the price towards $13.60.
Price Targets: $13.36, $13.40, $13.60
Entry Point: Near $13.11 for a conservative entry.
Stop-Loss Level: Below $12.97 to minimize downside risk.

finviz dynamic chart for  INDV

Kinsale Capital Group ($KNSL)

  • Support Levels: $447.57, $447.26, $444.61
  • Resistance Levels: $450.58, $451.10, $451.71

Price Action Prediction:
Next 2-3 Days: Expect upward tests of resistance levels around $450 continuing towards $451. Breaking $451.71 could lead to $455 region.
Price Targets: $451.10, $451.71, $455
Entry Point: Near $447.57 for an optimum risk/reward.
Stop-Loss Level: Below $444.61 to protect against downside.

finviz dynamic chart for  KNSL

PulteGroup Inc. ($PHM)

  • Support Levels: $123.64, $123.73, $123.56
  • Resistance Levels: $125.36, $124.86, $124.52

Price Action Prediction:
Next 2-3 Days: Likely consolidation above $123.64 support level with potential upward move towards $124.86 and then $125.36.
Price Targets: $124.86, $125.36
Entry Point: Near $123.64 support level.
Stop-Loss Level: Below $123.56 to mitigate losses.

finviz dynamic chart for  PHM

These quickly evolving patterns in the past 10-day period combined with ongoing volume surges suggest that $INDV, $KNSL, and $PHM have strong bullish momentum moving forward into the next few days, making them ideal candidates for short-term momentum swing trading.

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