The indices look a bit exhausted but there are some beautiful buy signals emerging on some of the beaten down growth names. A few that jump out from my watch list:
1) SOFI – Classic trend reversal shaping up with an inverse head-and-shoulders pattern and price pushing through resistance on a strongly bullish candle with increased volume. We could see the highest daily volume today that we've seen in weeks. There is some overhead resistance at the 50 DMA around $11.00, but this is a low risk entry point in my opinion. I started a position in January at $13.17 so I'm looking to add here.
2) DKNG – Very similar pattern to SOFI but today's breakout action is even more bullish. Very large candle making a new high and poking above the 50 DMA.
3) PYPL – I actually added to my position yesterday in anticipation of a breakout because it was showing classic volatility contraction. The stock is now well clear of the 20 DMA for the first time since Sept, 2021 and is on the doorstep of the 50 DMA.
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