A few people were asking me about my process, or in other words, how do I find - and select - a particular stock, like TransEnterix ($TRXC), which I posted on social media (Twitter, StockTwits, TradingView, etc.). First, you can see from the U.S. ranking blog post here, that at the time of posting this chart, Health Care was (and still is) an outperforming sector compared to its benchmark, in this case, the S&P500.
Drilling down into the Health Care sector, I am looking for
Here's an interesting setup: Quinstreet ($QNST) broke-out of its resistance area (orange rectangle) on high volume (3x the 50-day average - blue arrow). The price pulled back to its breakout level, confirming that the old resistance becomes the new support, on low volume (less than the 50-day average - red arrow), with momentum straying in a bullish range. Now, the price needs to bounce off this area and start a new uptrend to be a complete textbook breakout. If QNST is able
Just a quick note on some stock names listed in Hong Kong, as it'll be interesting to see how they act in the next few days from their current support/resistance level which should give us a hint on the overall trend. Let's start with those currently testing support: Tingyi (322) Swire (19) Bank of China (3988) Link Reit (823) ICBC (1398) ...then those testing resistance: HK & China Gas (3) China Resources Power (836) ...and finally those retesting their breakout level: Hang