Below are five stocks to watch according to VantagePoint, a platform that uses artificial intelligence and intermarket analysis to predict price movement.
What’s On The Charts
- Each candle on the following stock charts represents one day of trading action.
- The black line on the chart is a simple 10-day moving average.
- The blue line is generated via the AI in VantagePoint’s intermarket analysis. It forecasts prices moving forward.
A trend shift is represented by the two lines crossing. As long as the two lines don’t cross, the current trend remains intact.
- The red/green bar below the candle chart is a Neural Index. It determines whether a stock’s movement over the prior two days is a source of strength or weakness, and can confirm a trend.
This Week’s Hot Stocks Outlook
Home Depot Inc (NYSE: HD)
Home Depot had a predictive moving average crossover to the upside in mid-November after a strong Q3 earnings report. That crossover can be seen in the chart above as the blue line crossing the black line, indicating a bullish trend. The trend nearly reversed in mid-December, but the two lines still have not crossed, indicating the trend is still intact.
Since the initial crossover in November, the stock is up over 15 percent.
Halliburton Company (NYSE: HAL)
You can see in the chart above that Halliburton also had a crossover to the upside at the beginning of December, indicating a bullish trend was starting. Note the Neural Index also changed from red to green. In cases like this, where there was no fundamental news catalyst, the Neural Index serves as a confirmation of the trend’s strength.
Since the initial crossover in early December, the stock is up over 13 percent.
Urban Outfitters, Inc. (NASDAQ: URBN)
Urban Outfitters had a bullish crossover in early November and has seen its stock rise over 50 percent in part due to its strong Q3 earnings report on the 20th. The initial catalyst was a stake in mall-owner Macerich by Third Point Capital, and despite brief periods of consolidation and short-term weakness, the trend has remained intact.
Spirit Airlines Incorporated (NYSE: SAVE)
After a period of volatility, Spirit Airlines has found itself in a strong bullish trend. The trend began back on November 15 on no fundamental news, and has continued since then. The stock is up 28 percent since the initial crossover in November.
Marriott International Inc (NYSE: MAR)
Marriott’s bullish trend extends back nearly four months. The stock had a crossover to the upside in late-August, two weeks after the company reported Q3 earnings. Since that crossover of the blue line 4 months ago, the stock is up almost 36 percent.
You can watch a video explaining these crossovers here.
About the Hot Stocks Outlook
The Hot Stocks Outlook is a weekly video series. It’s designed to show traders how improving their timing is the key to maximizing gains and minimizing losses. VantagePoint Trading Software identifies trend reversals with up to 86 percent accuracy, helping traders get into the right side of trades at just the right time.
VantagePoint is an editorial partner of Benzinga.
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