Updated Watchlist For Monday January 27th

We’ve got some really nice set-ups going into next week. I’m going to break a couple down for you, but if you just want to jump right to the watchlist, you can see it right here.

RDDT

Every trader you follow probably has their eyes on this right now. After a 120% earnings reaction, RDDT has built a seven week long base with a decently tight pivot on the end.

The base is a little on the volatile side, but that’s certainly been this stocks personality since the earnings reaction. The next earnings announcement is about two weeks away and given this stocks volatile nature, you’re going to want to either have a profit cushion going into them, or sell into strength before them; a little bit of both would be ok too.

A hollow candlestick chart for RDDT
Click the image to view full size

FTNT

According to investors.com FTNT is the strongest stock in the cybersecurity group. That fact alone should be enough to make you keep an eye on it, but now that it has been building a base for ten weeks after a strong earnings reaction, you should be sitting up and paying attention.

It’s formed a very tight pivot at the end of the base with support at the 21ema, and the 50sma has caught up to it as well. Friday’s inside day was nice but I do wish it has less volume on it, however a huge chunk of that volume was support near trend lines.

A hollow candlestick chart for FTNT
Click the image to view full size

PRMB

Here’s a recent IPO that’s off to a strong start and has built out its first ever base. The pullback in the base was pretty shallow at around 8%, so it’s been trading fairly tight for about six weeks now.

What I like best about this, other than the primary base, is the low risk on the entry. If this was to turn up tomorrow you could use Friday’s low as a stop and set your risk somewhere around 2% on the trade or 4% if you wanted to wait for it to get into new high ground.

My plan is to do both actually, buying some if it turns up Monday, and adding more if it takes out the high from January 21st.

A hollow candlestick chart for PRMB
Click the image to view full size

Full Watchlist For The Week Of January 27th

Primary List

Secondary List

If you want to see what stocks I bought last week I detailed last weeks purchases here.

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