Chart of the Day: This 'Diplomat' Has a Bullish Look
It is rare to find a stock with such powerful momentum for longer than a couple of weeks.
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There is nothing better during a bull run than when all of the indicators are lining up in the same direction. We have seen that with Seagate Technology (STX) , an EPS Diplomat name recently added to TheStreet Pro Portfolio.
Seagate has shown a series of higher highs and higher lows, the textbook definition of an uptrend. Money flow has been decent, while the moving average convergence divergence (MACD) was solidly on a buy signal until a recent crossover move in late November. That is not a problem, though, as the stock is just taking a break after a torrential run higher.
What is impressive for Seagate is the strong momentum exhibited from August to September. This stock was overbought and stayed that way for weeks, making higher highs along the way. It is rare to find a stock with such powerful momentum for longer than a couple of weeks, but STX is certainly in that category.
Notice the top from that late fall run is where the current price is located (call it $262-266). We should see this hold firm if the stock is ready to make another run higher. That is likely to lead to the $300-310 area. Above the resistance line is our clue to that happening.
As a member of EPS Diplomats this stock does not have a rating.
At the time of publication, TheStreet Pro Portfolio was long STX.
