Last week’s rally ushered many S&P 500 stocks into critical resistance levels, and some even mustered the strength to blast through them. In scanning the large-capitalization stocks of the land, I found five that deserve special attention. And their relative strength suggests more upside to come.
Trading around support or resistance thresholds allows traders to play when the odds are in their favor and when there’s an asymmetric payout. For these stocks that haven’t breached resistance, the idea is simple. If they push through the ceiling, then buy. If they don’t, then don’t buy! We want bulls to show their hand before joining them, and breaking out is just the signal to watch for.
Overall, I cast a wide net to discover the following S&P 500 stocks, resulting in diversified choices. In turn, this increases the chances that at least one of them delivers.
With that in mind, let’s dive in and take a closer look at each one.
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