Stock market gains petered out until the end of 2024 as investors waited for a Santa Claus rally. Some leaders gave up some of their breakout gains. But amid the pullback, six IBD 50 stocks have found support in their 10-week moving averages.
Although market risks are increasing at the moment, this presents new buying opportunities. These charts will help you fill in the gaps in inventory installed at your base.
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How to read stock charts: Moving averages
In all of these cases, the stock has fallen to its 10-week line and is at least attempting to rebound. The buy point is at the 10-week moving average of the week the rebound begins, and the buy zone is 5% above it.
For example, Natera (NTRA) is in a buy zone rising to around 164. The relative strength line is also near the high.
The company provides prenatal genetic testing and diagnostic services. The company announced on November 12 that sales growth has accelerated for the fourth consecutive quarter. Although the company continues to record losses, its stock price is far out of sync with its business performance.
But the funds remain unchanged. More funds have been net buyers of this stock over the past 13 weeks, giving it the highest Accumulation/Distribution Rating of A-. Natera has a Relative Strength Rating of 96. Mutual funds own 75% of the outstanding shares.
ARIS Water Solutions (ARIS) is also in a buy range from its 10-week line. This one goes up to about 25.25.
The stock has risen more than 20% in the three weeks since breaking out of the 18.99 buy point. What is noteworthy is that the stock price has broken through the initial benchmark, which means that the net profit is likely to increase further. Investors who followed the 8-week hold rule can take advantage of the latest entries to add to their positions.
Revenue and profit growth have been steady over the past four quarters. Alice has a relative strength rating of 96. Over the past five quarters, more funds have added this stock to their portfolios.
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Software stocks to watch
In the travel sector, MakeMyTrip (MMYT) is also up from its 10-week line near 111. The stock remains within buy range from the reference buy point of 110.49. However, the buy range from the 10-week line will rise further and rise to around 116.50.
The stock outperforms 95% of other stocks in Investors Business Daily’s database. Solid sales and earnings growth over the past eight quarters and a B accumulation/distribution rating add positive points to the stock.
The two software names have also remained within the purchase range from the 10-week line support.
Vertex (VERX) is testing the 10-week line, but there is no pullback so far. Vertex provides software for corporate tax processing and holds a Relative Strength Rating of 94 and a Cumulative/Distributive Rating of B+.
Shift 4 (FOUR) extends from the buy zone from approximately 101 to 106. The payment provider has a relative strength rating of 92. Additionally, this stock has an Accumulation/Distribution Rating of B.
Another payments firm, Affirm (AFRM), found the 10-week line at 62 to be clear support. The 5% range from entry on the 10-week line is up to about 65.
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