{"id":3188,"date":"2013-09-25T10:12:44","date_gmt":"2013-09-25T14:12:44","guid":{"rendered":"http:\/\/www.morpheustrading.com\/blog\/?p=3188"},"modified":"2013-09-26T18:12:11","modified_gmt":"2013-09-26T22:12:11","slug":"best-relative-strength-amba-onvo","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/best-relative-strength-amba-onvo\/","title":{"rendered":"Don&#8217;t Miss The Breakouts In These Top 2 Relative Strength Stocks"},"content":{"rendered":"<p>The stock market remains in pullback mode after a strong surge off the lows, but leading individual stocks continue to hold up and show clear relative strength.<\/p>\n<p>Yesterday, for example, 4 of the 11 stocks in our swing trade newsletter gained at least 1.5%, even though the NASDAQ Composite was flat.<\/p>\n<p>Yelp ($YELP), which is presently showing an <strong>unrealized price gain of 33% since <a title=\"Review of our $YELP buy entry\" href=\"https:\/\/www.morpheustrading.com\/blog\/yelp-swing-trade-entry\/\" target=\"_blank\">our August 21 buy entry<\/a><\/strong>, jumped 2.4% yesterday. LinkedIn ($LNKD), another leading stock we are currently holding, climbed 2.6%.<\/p>\n<p>As long as the broad market avoids heavy distribution and leadership stocks continue holding above key support levels, we expect the current correction to be short lived.<\/p>\n<p>As such, <strong><a title=\"5 Modes Of Our Market Timing System\" href=\"https:\/\/www.morpheustrading.com\/blog\/market-timing-system\" target=\"_blank\">our market timing system<\/a> remains in &#8220;Buy&#8221; mode<\/strong> and we continue to establish new long positions in leading stocks and ETFs.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/best-relative-strength-amba-onvo\/#A_3-D_Printing_Stock_And_Semiconductor_Stock_%E2%80%93_What_Could_They_Have_In_Common\" >A 3-D Printing Stock And Semiconductor Stock &#8211; What Could They Have In Common?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/best-relative-strength-amba-onvo\/#Ambarella_AMBA\" >Ambarella ($AMBA)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/best-relative-strength-amba-onvo\/#Organova_Holdings_ONVO\" >Organova Holdings ($ONVO)<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"A_3-D_Printing_Stock_And_Semiconductor_Stock_%E2%80%93_What_Could_They_Have_In_Common\"><\/span><strong>A 3-D Printing Stock And Semiconductor Stock &#8211; What Could They Have In Common?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Going into today, there are two new swing trade buy setups on our <a title=\"Our Swing Trading Newsletter\" href=\"https:\/\/www.morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\"><em>Wagner Daily<\/em><\/a> watchlist: Ambarella ($AMBA) and Organova Holdings ($ONVO).<\/p>\n<p>Although $AMBA is a semiconductor stock and $ONVO is in the exciting industry of 3-D printing, the common factor<strong> both stocks share is a very high <a title=\"IBD Relative Strength Rating\" href=\"https:\/\/education.investors.com\/investors-corner\/595789-altera-showed-relative-strength-line-confirming-strength.htm\" target=\"_blank\" rel=\"noopener\">IBD Relative Strength (RS) rating<\/a><\/strong>.<\/p>\n<p>$AMBA has an RS rating of 94, while the RS rating of $ONVO is 98 (99 is the absolute best).<\/p>\n<p>Since high RS is one of the top technical criteria in the individual stocks we look to trade, both stocks pass that test with flying colors.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Ambarella_AMBA\"><\/span><strong>Ambarella ($AMBA)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In addition to having high relative strength, $AMBA has a 5-year growth rate of a whopping 53%. Combined with high RS, the high EPS rate makes $AMBA an ideal buy candidate.<\/p>\n<p>Let&#8217;s take a look at the daily chart of $AMBA below:<\/p>\n<p><img decoding=\"async\" title=\"$AMBA Weekly \" alt=\"$AMBA BIG VOLUME BREAKOUT ABOVE 50MA\" src=\"https:\/\/www.morpheustrading.com\/\/~rick\/\/charts\/2013\/130925AMBA.png\" \/><\/p>\n<p>After rallying <strong>more than 300%<\/strong> since its IPO just over a year ago, $AMBA entered into a correction throughout July and August that caused the semiconductor stock to slip below intermediate-term support of its 50-day moving average.<\/p>\n<p>However, notice that $AMBA reclaimed its 50-day moving average earlier this month, and did so on a big jump in volume. This is a very bullish sign that indicates <strong>$AMBA is setting up for another rally higher.<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Organova_Holdings_ONVO\"><\/span><strong>Organova Holdings ($ONVO)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In July of this year, $ONVO surged to the $8 level and volume correspondingly spiked higher as well.<\/p>\n<p>After peaking near $8 this past summer, $ONVO pulled back to the $5 area, which caused a &#8220;higher low&#8221; to form (above the August low near $4.50). Since then, the stock\u00a0has been in consolidation mode.<\/p>\n<p>On September 19, $ONVO recaptured its 10-week moving average (similar to 50-day moving average) on heavier than average volume, then consolidated on lighter volume for two days.<\/p>\n<p>Now, we are looking for the price action to tighten up around the 10-week moving average, which could soon lead to a<strong> breakout above the range:<\/strong><\/p>\n<p><img decoding=\"async\" title=\"$ONVO Weekly \" alt=\"$ONVO Breakout above 50ma\" src=\"https:\/\/www.morpheustrading.com\/\/~rick\/\/charts\/2013\/130925ONVO3.png\" \/><\/p>\n<p>Because of their relative strength, combined with their bullish consolidation patterns, <strong>both $AMBA and $ONVO have entered our radar screen for potential buy entry in the coming days.<\/strong><\/p>\n<p>Regular subscribers of <strong><a title=\"The Wagner Daily newsletter\" href=\"https:\/\/www.morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\">our swing trading newsletter<\/a><\/strong> should note the &#8220;Watchlist&#8221; section of today&#8217;s report for our exact entry, stop, and target prices for each of these two new swing trade setups.<\/p>\n<p><em>If you enjoyed this article, please share with your favorite social media network. As always, comments are greatly appreciated as well.<\/em><\/p>\n<p><center><script id=\"mNCC\" type=\"text\/javascript\" language=\"javascript\">\/\/ <![CDATA[\nmedianet_width='300';  medianet_height= '250';  medianet_crid='775516228';\n\/\/ ]]><\/script><script id=\"mNSC\" type=\"text\/javascript\" src=\"https:\/\/contextual.media.net\/nmedianet.js?cid=8CUYGRI27\" language=\"javascript\"><\/script><\/center><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The stock market remains in pullback mode after a strong surge off the lows, but leading individual stocks continue to hold up and show clear relative strength. Yesterday, for example, 4 of the 11 stocks in our swing trade newsletter gained at least 1.5%, even though the NASDAQ Composite was flat. Yelp ($YELP), which is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5],"tags":[],"class_list":["post-3188","post","type-post","status-publish","format-standard","hentry","category-stock-picks-analysis"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/3188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=3188"}],"version-history":[{"count":0,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/3188\/revisions"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=3188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=3188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=3188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}