Even though the market has been shaky, some stocks are staying strong. They are getting close to a point where traders might want to buy.
The most interesting groups are semiconductor companies, real‑estate investment trusts (REITs), and basic‑material producers. Each group is finishing a small correction and is ready to move higher.
To see if a stock will break out, watch three things:
- RSI – the momentum gauge should be turning upward.
- ADX – the strength indicator needs to show a firm trend.
- Price shape – the chart should form a clear base before the next rise.
The overall market is also changing. Sentiment is shifting more positive, volatility is rising a bit, and several key resistance levels are in view.
For a lasting upward move, the market must keep this positive sentiment, hold the new higher lows, and break through the identified resistance zones.
Source: Materials provided by https://articles.stockcharts.com.Note: Content may be edited for style and length.